Maximizing Growth If a client had a million-dollar gap in his or her 401(k), how would you address it? The answer to this question may depend on many client-side factors, such as how close to retirement the client is, planned or unexpected assets or liabilities, health, and skills that may be leveraged for income. The answers also depend on the financial planners analytical and risk management skills. So how can you help your client select the best strategies that will work for him or her? Growth strategies run the gamut from relatively conservative to aggressive and risky. The key will be communication to identify those strategies that leverage the clients strengths and minimize weaknesses. For instance, clients with strong portfolio flooring who have taken a hit on their upside, may be able to rebalance a portion of their capital markets investments to take slightly more risk. Clients who lead a simple lifestyle may use zero debt as their strongest asset to free up cash flow for supporting their retirement lifestyle. Even a lottery ticket is a growth strategy, but obviously one you would never recommend to a client! For this Discussion, you explore strategies for maximizing growth of retirement funds and determine for whom they would be most appropriate.

To Prepare: Review the growth strategies presented in this weeks Learning Resources (e.g., annuities, capital markets and securities, savings and/or debt strategies, or business ventures). You may wish to conduct your own research in the Walden Library or reputable professional resources on the Internet to explore other strategies as well. Keep in mind that there are professional resources available, such as those from Morningstar (one of which is in this weeks Learning Resources), which can help you evaluate the benefits and risks of high-yield investment products.

Select two growth strategies to use for this Discussion. By Day 3, post responses to the following: What are the benefits and risks of the growth strategies you selected? For whom would these strategies be most effective? For whom would they be least effective? Be specific and provide examples and references to support your post.