3 Tips to Simultaneously Protect Income and Legacy

3 Tips to Simultaneously Protect Income and Legacy

Planning for retirement and protecting a client’s legacy go hand-in-hand. You cannot pass along family wealth without adequate life insurance planning. And, your client will not be able to sustain a standard of living without proper longevity planning.

A retiree who lives off a systematic withdrawal strategy risks the chance of eroding their family’s wealth due to longevity-related issues. They might live beyond their planned life expectancy and need more income. There’s also a high chance of needing long-term care – a single event may cost several hundreds of thousands of dollars and wipe out anything to pass along to children or grandchildren.  

Strategies exist to both maximize your client’s retirement income and protect their family members using life insurance and lifetime annuities or pensions. At the end of the day, it just requires planning and preparation.

Here are three ways you can protect your clients’ income and legacy at the same time:

  1. Make the most of guaranteed income. Guaranteed income comes in many forms. I’m not just talking about annuities. Social Security and employer-provided pension plans are also sources of guaranteed income. It’s critical that you help your clients maximize each by carefully weighing their options. There’s no one-size-fits-all strategy. By maximizing income from these guaranteed sources, you’re lessening the burden on other assets to perform.
  1. Approach prospects earlier. Too often, I hear wholesalers and advisors talking about the right client to approach for retirement planning – they usually say late 50s or early 60s. In today’s economic environment, I think it’s younger than that. Americans’ retirement savings rate remains dangerously low. That has to change through education with advisors. The sooner you can get clients on the right track, the better. They’ll have more assets to work with, giving them more options for how – and when – they want to retire or pass on their wealth.
  1. Use non-correlated assets. Our studies have shown that withdrawal strategies using a non-correlated asset reduced the failure rate of retirement plans to just 2 percent – compared to 25 percent with a systematic withdrawal strategy.1 I think all your clients would appreciate increased confidence that their retirement and legacy plans will work.  


Winning Strategy

Use guaranteed income properly and in conjunction with life insurance to create holistic financial plans. Protect your client’s retirement income and their legacy at the same time.

Winning Strategies

Craving More?

As our population continues to age, risks increase due to longevity. And, longevity is the greatest multiplier of all the retirement risks. Join us along with Tim Ash as we tackle the opportunity in retirement!

Register Now


About the Author

Mike McGlothlin is a team leader, retirement industry activist and disciple of Indiana Hoosier basketball. In addition to being EVP of retirement at Ash Brokerage, he is a sought-after writer and speaker. His web series, “Winning Strategies,” provides insight and motivation for financial advisors in many forms – blogs, books, videos, podcasts  and more. You can get his latest book, “Winning Strategies: The New Rules of Retirement Planning,” on Amazon.



1Ash Brokerage, “QLACs Improve Probability of Retirement Success,” 2018: http://go.ashbrokerage.com/WC2018-03-12-RET-30007_LP-Content.html