Retirement is a happy time for clients — but it can also be stressful as they adjust to a new way of life. Part of the post-work journey is learning how their investment habits and strategies need to change, so start that discussion as early as possible.

A big part of talking about decumulation and retirement spending is helping clients understand why and how they need to rethink risk, says Daniel Crosby, president of Atlanta, Georgia-based Nocturne Capital. Also, you may need to explain that dated concepts like the 4% rule and 60/40 portfolios are familiar but ineffective.

Read: Alternatives to 60/40 portfolios

Crosby, who spoke at the IMCA’s Focus on Investing for Decumulation event yesterday, said, “Over-reliance on the 4% rule seems nice and feel certain,” but markets change. In the near term he expects several years of “ugly returns” and tough markets, citing sources such as the Buffett indicator and the CAPE ratio, or cyclically adjusted price-to-earnings ratio.

Read: Don’t rely on the equity rally: portfolio manager

Aside from the impact of market movements on portfolios, there’s a lot to consider in clients’ later years. Along with health risks — including the increasing chance of depression — you need to monitor people’s behavioural ticks. For his part, Crosby uses a behavioural investment policy statement that he brings up whenever a client is too excited about or afraid of markets.

Read: Save clients from emotional mistakes

Behavioural coaching “is huge,” Crosby said. “If you save someone from making mistakes even three times, you’ve more than earned your keep.” The problem, however, is the value of behavioural coaching isn’t recognized.

In his view, “It’s time to get creative […] and have tough conversations,” and it’s time for advisors to leverage behavioural coaching.

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