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Next Chapter Lessons

Next Chapter Lessons from a Retiring Advisor Who Isn’t Giving Up Work Entirely – Globe Advisor Weekly Newsletter June 16, 2023 |
Deanne Gage

After 35 years of running a thriving advisory business in Winnipeg, Daryl Diamond was ready for the second act.

He transitioned his practice to a successor over a three-year period and gave up his licences, but isn’t giving up work entirely.

His new role will see him serve as chief retirement income strategist for Dynamic Funds’ Retirement Income Centre, which was the main area of focus for his former practice.

Mr. Diamond recently spoke with Globe Advisor about the next chapter.

How do you currently define your second act?

I consider myself retired from individual client work. I’m employed on a flexible basis.

Experience is a wonderful teacher. As I was beginning to transition out of running a practice, I realized I was going to be totally detached from the work I was doing and I didn’t know if I was ready for that. But a three-year gradual wind-down of the daily duties gave me an opportunity to assess. In my new role, I’ll be providing content to Dynamic Funds’ new Retirement Income Centre website.

What do some advisors still fail to understand about retirement income planning?

I’m always surprised at the perception that a retirement income practice is one that’s going to deplete. But the assets, from our experience, are relatively stable in terms of their value because they’re earning a rate of return.

The rate of withdrawal is often not going to be larger than the anticipated return given the portfolio metrics that are in play. Yes, there are minimum withdrawal formulas that come into play down the road for registered assets. But that doesn’t mean clients are spending it. They may relocate the assets to a tax-free savings account, for instance.

When I used to look at a prospective client scenario, it wasn’t that their investments were set up wrong. Retirement income planning is about helping clients make the best use of the assets they’ve accumulated. There are so many different ways to deliver their [needed retirement] income.

Now that you’re in the second act, does anything about retirement income planning change for you?

As you get to a certain age, you have a much greater appreciation of the mindset and some of the concerns of someone in retirement.

They often relate to making the best use of the quality time available to them in their retirement. No one knows how long they will stay healthy. We begin to experience more discretion and freedom with our time.

This interview has been edited and condensed.

– Deanne Gage, Globe Advisor reporter