When it comes to planning for retirement, couples generally agree on the big picture. It’s in the details, however, where differences often arise, says Nayan Ranchhod, Ameriprise Financial private wealth advisor and CEO of Silver Lining Wealth Advisors in Scottsdale, Ariz.
Nayan Ranchhod/Photo courtesy of Ameriprise
“We always try to make sure that we’ve got both husband and wife or partners or spouses in the room at the same time to have a conversation,” says Ranchhod. “We start with goal development and create a safe place so everybody feels comfortable enough to be able to have those intimate conversations about how they view money…I start with questions like, ‘Hey, tell me a little bit about your past. Tell me about what your childhood was like. Tell me about your family. Tell me about how you make financial decisions.’”
A recent Ameriprise research report examined how more than 1,500 American couples between the ages of 45-70 with more than $100,000 in investible assets feel about managing their finances. It underscores the importance of having granular conversations about financial matters. The report revealed that couples “overwhelmingly say they trust one another with money” but nearly one in four have not agreed upon how much money they will need to save for retirement and how much they plan to leave their children and grandchildren.
On Barron’s the Way Forward podcast, Ranchhod discussed the report’s findings, including how couples can navigate staggered retirements, openly discuss financial goals, and find constructive ways to resolve financial disagreements. Below are highlights from the conversation:
The importance of transparency between advisor and client. “The largest impact that we could have is having open transparent conversations when it comes to money and couples. It’s no surprise to us that having a financial advisor puts you on a better path to success. Probably the biggest thing is being able to be a facilitator of conversations between couples and helping them reach their goals.”
Clarifying wants and needs for clients. “When you have a really strong relationship, and you’ve got similar values and morals, and you’re looking at ‘How do we spend our money?’—sometimes it doesn’t come naturally. And out of respect, you don’t always talk about what it is that you want. Sometimes it’s more about what do you need? So I think what ends up happening is you allow yourself to move forward into those wants and having those discussions, and we do that every meeting and having those conversations with clients: ‘Tell me what you want. Paint me a picture of what life you would like to have.’”
The three buckets of life. “In the conversation with clients, we break it down into three buckets of life. Bucket No. 1 is things that you can control. Bucket No. 2 is things that you can influence. And bucket No. 3 is things that you can’t control or influence. And so what we try to do when we’re creating a plan for clients is to take a lot of those things that are in bucket No. 3 and try to take them off the table.”
What separates great advisors from good ones. “Before anybody is willing to do business with you, they have to like who you are first. I think you need to be able to communicate effectively, be an open listener, and reflect what they are saying back so that you can make sure you’re on the same page. I think that piece of the reflection and seeking to understand we’ve gotten away from. As I’ve grown in my career, I look at the conversations that I think are most effective and the ones that are not. And it’s that reflection and seeking to understand that piece that I think separates good advisors from great advisors.”
Learning from clients. “My favorite thing to do is learn from other clients about how they’ve parented and watch those things. I’ve seen more kids go through college, and I don’t even have college age kids yet. I think there’s a lot of value there, and being able to help them understand from other stories that you’ve seen, so you’re not speaking at them. You’re speaking with them as a trusted friend.”
Write to Greg Bartalos at greg.bartalos@barrons.com
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