By: Maria Williams

Certified Financial Planner and Fiduciary of Watermark Wealth Strategies, LLC, Kyle Richardson Shares More on the Common Mistakes & Strategies from Clients When it Comes to Long-Term Wealth Planning.

For many people, thinking about financial planning or long-term wealth planning can be extremely daunting, understandably so. There’s an emotional element to thinking about planning for the future or retirement, which can fuel procrastination or avoidance. The problem is despite the fact retirement planning may seem like a far-out endeavor, there are plenty of actions you can do in the immediate—and avoidance will only hinder your future.

In light of this, I recently sat down with Certified Financial Advisor Kyle Richardson who shares 3 pieces of advice for choosing the right financial advisor to meet your unique needs. In this interview, he dives into the common challenges and complexities people face when it comes to retirement planning.

Choose a Trusted Financial Advisor who Meets Your Needs

First and foremost, Richardson underscores the importance of acknowledging that many of his clients are coming to him from a previous financial advisor. Whether they had a poor experience or felt their specific needs were not being met, they’re coming to him for a reason. When seeking financial guidance, choosing a trusted advisor is the first step, and if you happen to fall into the aforementioned category of individuals, Richardson and his firm are here to change that.

At Phoenix-based financial firm, Watermark Wealth Strategies, the team understands the interrelationship between having strong relationships with clients and garnering positive financial results – one cannot be achieved without the other.

Richardson is a founding partner, Certified Financial Planner Professional, and financial planning Fiduciary of Watermark and has over 25 years of experience in the financial industry. After building the firm from the ground-up over 15 years ago, Watermark Wealth Strategies has blossomed into a dynamic wealth advisory firm based in Chandler, Arizona. 

“At Watermark, we take a highly personal and family-centric approach. I give my clients my personal phone number – which to some, may seem insane, but it allows me and other advisors who follow in the same suit to build the necessary rapport with clients. 

Building trust with clients also boils down to how we are communicating with them. Consistent and frequent communication will foster a closer relationship between advisor (or teams) and their client – and making them feel that they can reach you personally is quintessential to making that successful. Face-to-face communication is also just as important – and is something that has lost touch since the pandemic. I urge every single advisor out there to assess how much in-person one-on-one time they’re having with their clients because I guarantee it will take the relationship to a stronger level. 

At Watermark, we host monthly happy hours to get the appropriate Facetime with clients, and we open up the event to their friends, family, and colleagues, which makes them first feel more comfortable and cared about and secondly could open the door for new client relationships,” says Richardson.

Mistakes I would Tell my Friends to be Wary of 

It is more common than not that a client will not come close to ever spending what they have saved. This usually happens as a result of said client being incredibly diligent from day one with saving, and they now have a surplus of retirement – which is great for generational family wealth planning. In these instances, Richardson and his team work with the children and grandchildren of our clients to safely and strategically plan to pass down their wealth. 

While this may seem simple, there are countless tax implications to be aware of – especially when a client decides to gift their wealth. Working with an advisory firm that is well-versed in both wealth and tax planning is critical to ensure the process moves smoothly (and legally for that matter). 

Another common misconception Richardson sees when it comes to retirement planning are individuals not saving early enough. He says it is never too early to begin planning – whether that is via a traditional 401K account (which many employers offer a match to) or a Roth IRA. The earlier you begin saving, the more assets you will have compounded, and the result will be well worth it when the time comes to retirement. 

The impact of inflation is also a key consideration in wealth planning right now. Many clients underestimate the impact inflation rates can have on their retirement savings (and Richardson isn’t the only advisor who agrees as apparently 49% of financial planners cite this as a top mistake. It is also common for individuals to underestimate their own life expectancy, which can result in a client not having saved enough for an unexpectedly longer retirement period. 

Individuals also have a tendency to overestimate their investment income, setting unrealistic expectations for themselves when it comes to retirement. On the contrary, some folks may start the process early, but they choose to invest too conservatively, which again could lead to having an insufficient safety net for retirement. 

“While some of these mistakes listed above are common, they don’t have to be. At Watermark, we pride ourselves on not only building trust with our clients but as part of that trust-building process, also being completely honest and transparent.

We leave our egos at the door to ensure that we’re giving our clients the best possible counsel, even if it means telling them that their outlook is skewed or that we disagree with a certain savings tactic. Working with a firm like Watermark, you feel like your advisor is part of your family – which is how it should be. With this level of personalization and trust, we will always put your best interests at the forefront of our financial planning strategy. Financial planning is so incredibly personal, which is why at Watermark, we treat clients how we would treat our own parents, siblings, or children,” says Richardson.

To learn more about Kyle Richardson, Watermark Wealth Strategies, and how to effectively plan for a comfortable future, visit their website and connect with an advisor today. To learn more about effective retirement planning strategies, visit their blog here.

Disclaimer: This content is for informational purposes only and is not intended as financial advice, nor does it replace professional financial advice, investment advice, or any other type of advice. You should seek the advice of a qualified financial advisor or other professional before making any financial decisions.

Published By: Aize Perez