Even before the market collapsed (and let's face it, a nearly 50% loss of value is no mere speed bump), retirement experts were anticipating that the baby boom generation would overwhelm the modern retirement system. There are too many boomers with too little savings, and Social Security won't be able to fill the gap. Now, with the bulk of the baby boom on the far side of 50, the push is on to reinvent this late stage of life-not because people want to, but because they must. Financial Planning turned to the experts and visionaries who understand this dilemma profoundly, and asked them to share how they would redefine retirement. Their insights will help you update your practice. Share them with clients—and, perhaps, your spouse.

---

Ed Slott
CPA, IRA Distribution Expert
Rockville Centre, N.Y.

Consumers are worried, and they're getting educated. Thus, they're demanding well-educated advisors who can take them through the second half of their lives. The pendulum has swung, and clients have gone from needing help with accumulation to needing help with distribution, which is more critical and urgent than ever. There is less money going around now, and the less you have the more important it is to protect it.

Of course, there are certain forces consumers can't control, but the things they can control, like taxes, they're taking much more of an interest in and demanding more from their financial advisors. We're going to see a huge increase in taxes, which will be the biggest obstacle to building wealth in the future. Advisors must step up and get educated about how to manage.

Most advisors—probably more than 99%—know very little about distribution planning. That 1% of advisors will control most of the retirement rollover money. The big problem with advisors, though, is that they don't realize what they don't know.

There's a silver lining to this economy: People are mad and ready to switch. We're seeing consumers move chunks of their life savings away from banks and brokerages. I'm speaking to lots of consumers, and they're willing to move money away from brokers they've had for more than 30 years. There's no more loyalty. That money is available for any advisor who wants it, but you have to invest in your education and show people you have a plan to hold on to it through retirement, not to mention an estate plan for after death. If it sounds like you have to do something different it's because you do.