As an independent financial advisor or IFA, you understand that as your clients approach retirement, their investment priorities shift. The importance of a tailored, structured asset allocation plan, specifically designed to meet individual retirement goals, can’t be overstated for your success and theirs.

Offering personalised asset allocation services helps IFAs achieve their clients’ retirement goals.

Building a future-proof retirement portfolio

Diversification remains the bedrock of a resilient retirement portfolio. Balancing traditional investments such as bonds, equities, and cash with alternative assets is key.

At IFSA, we advocate for the inclusion of private equities into retirement portfolios. Offering active management and the potential for growth, private equities add another dimension to the investment mix.

But private equities aren’t just another asset class. They create a balanced investment blend, enhancing risk-adjusted returns and providing stability during market fluctuations, thus fostering a more predictable retirement income for your clients.

Crafting the ‘ideal’ retirement portfolio with tailored asset allocation

As you know, there is no one-size-fits-all retirement portfolio. It’s influenced by several factors, including proximity to retirement and tolerance for market fluctuations.

Personalised asset allocation strategies based on these individual circumstances are crucial. For example, an investor who’s 15 years from retirement might prefer a portfolio split of 40% bonds, 30% equities, 20% cash, and 10% private equity. As they edge closer to retirement, the allocation to safer assets may increase – an important point to keep in consideration when structuring a plan.

Click here for an in-depth article on how you can redefine the 60/40 portfolio and bolster asset allocation with private equity.

Maximising retirement income options

Choosing between a pension fund lump sum, a living annuity, or a life annuity is another crucial decision for your clients, which underlines the importance of your role as a financial advisor.

A pension fund lump sum provides immediate funds, useful for immediate financial needs or debts. However, ensuring this sum lasts throughout retirement can be challenging.

Living annuities offer flexibility in income and investment choices and the option to adjust income drawdown rates annually. It allows for wealth to be passed on to beneficiaries.

Life annuities offer a guaranteed lifetime income, providing security. However, they offer less flexibility and don’t typically allow wealth transfer to beneficiaries.

Carefully evaluating each option, in line with clients’ financial situations, needs, and comfort with investment variability, is key to creating a successful retirement strategy.

IFSA – the IFA’s partner in retirement portfolio asset allocation

Retirement planning requires a bespoke asset allocation strategy. Incorporating diversification and alternative assets into the mix can help you create a robust retirement portfolio for your clients.

At IFSA, we acknowledge the complexities of retirement planning and the crucial role independent financial advisors play.

We offer valuable insights and personalised strategies tailored to your clients’ needs. Our dedication is evident in our history of assisting IFAs in creating portfolios that result in comfortable retirements. Just listen to what retired police officer, Leon Jansen, had to say about investing his money with IFSA.

Find an ally in IFSA to see clients’ retirement portfolios prosper

So, reach out to us today to understand how our expertise in alternative investments can help you broaden your portfolio offerings and provide your clients a smoother road to a prosperous retirement.