When you grow up in Indianapolis, you naturally follow racing to some degree. I’m not a huge racing fan, but I do follow the sport. (Actually, I follow just about any sport offers an opportunity to make an analogy with our industry.)
As Memorial Day and the 101st running of the Indianapolis 500 approaches, I thought I’d share some statistics from the first race of this year’s IndyCar Series.
For the St. Petersburg race, the winning margin was just 10 seconds. Now, on a race track, 10 seconds may seem like a massive win for the first place car. But, think about how narrow that margin really is over the entire race, when things could have gone wrong at any point ...
The timing of all of the above had to be near perfect in order to win because the next competitor was just 10 seconds behind. With any loss in momentum, the driver could have easily lost the race.
Just as anything can happen in 100-plus laps of an IndyCar race, you can never know what to expect in a 20-30 year retirement span. Both inflation and long-term care pose serious risks to our clients’ plans. Without a strong plan and skilled execution, they could easily be thrown off track.
Our clients need to think about all the twists and turns their retirement might bring. And, we need to make sure their incomes don’t lose momentum. We need to make sure they’re able to finish strong. QLACs, deferred income annuities, income riders, and hybrid long-term care plans are just a few of the recent innovations that allow us to help our clients complete the race. Because in their race, it’s either first … or last.
Look at ways to protect your clients from inflation and longevity concerns. Clients have to complete a long race that includes dangerous turns, a few pit stops, and the need to maintain momentum for the long haul.
The marketplace is demanding financial professionals to work in our clients' best interest, which will not only need to address retirement income, but also the risk of longevity.
Mike McGlothlin is a tireless advocate for the retirement planning industry. As executive vice president of annuities at Ash Brokerage, he heads a team providing income planning solutions focused on longevity and efficiency. He’s also a thought leader who provides guidance and assistance for advisors and broker-dealers navigating marketplace and regulatory changes. You can find a collection of his blog posts in his book, “Above the Clouds … Winning Strategies from 30,000 Feet.”