How Buckets and Guardrails Drive Value

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Here’s how advisors can deliver massive value using “buckets” and “guardrails” to empower clients to act during times of economic turmoil.

With the markets down, are your clients playing chicken with their retirement accounts?

They feel the effects of the economic situation coming for their savings. They may hear you telling them to hold steady.

But the probabilities of success are not convincing.

While you’re trying to get clients to hold the course, how many are ready to bail because they don’t understand your plan enough to trust their life savings will last during these turbulent times?

Your clients don’t care much about the percentages listed in portfolio reviews; they want to know if they will lose the savings they depend on. You can provide a steady hand and avoid a collision with buckets or guardrails.

What are buckets/guardrails?

Buckets or guardrails take the game of chicken off the table by allowing your clients to visualize their cash flow and how it impacts their bottom line. These single-page diagrams of their financial situation show the client’s distributions and assets in actual dollar amounts – not just percentages. No matter which version you use (I’ll be completely biased: buckets are better), your clients will be able to see two critical factors: