Annuities

Education is the New Product


Annuities

June is Annuity Awareness month, and that means we have a great opportunity to talk about annuity products. While the tendency is to focus the discussion around the benefits of products and their role in planning, it may not be the proper topic. While we might sell/place/transact an annuity purchase, the client, ultimately, is buying the ability to retire securely. The path to that security lies in education.

 

No one really buys a product for the product’s sake – they buy because they have been told that the product will solve a problem. It’s not the products we should be talking about; it’s the problems themselves, and the strategies we should be taking to alleviate those problems. Annuities are a great problem-solving tool, often for issues we are not addressing with our clients. Instead, we tend to ignore the issue because we are “wealth managers”, “not insurance agents”, or “focused on growing assets”.

 

Longevity is a major planning hurdle for clients. Predicting how long you are going to live is nearly impossible, making it difficult to plan the correct asset allocation, asset location and withdrawal percentage. If you ask your clients whether they feel they have enough money to live on for the rest of their life, most will say they don’t know, or are not sure. That should lead to a discussion about lifestyles, saving strategies, income generation and risk mitigation. Without having this discussion, your client is left with anxiety that builds over time and can only be calmed when they find another planner that solves the pressure point. That needs to be you.

 

Without the assurance of a plan to alleviate the pain now – or in the future – the client remains in distress. Worried clients could be swayed to the first planner that gives them a picture of security. Our industry needs to deliver the confidence to our consumers that we have a plan just for them, one that can solve their most pressing goals and concerns. Consumers deserve the right to feel that we are addressing their particular needs in the best possible way. They need to know that we are in the business of solving problems, without respect to a particular product. If that means better consumer facing material to help with the conversation, we’ll gladly work with your compliance department to help build it. As I wrote a couple months ago, our industry is the least trusted industry worldwide. Earning that trust starts with education – and it starts today.

 

Winning Strategy: Focus on finding out what really bothers your client and educating them on the problem and solving that problem without regard to product. Start this month to focus on education, not product.

 

 

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. His latest book, “Free Throw for Financial Professionals,” is available now – learn more at www.freethrowsforpros.com.

 

retirement education problem-solving

Annuity Awareness


Annuities

June is Annuity Awareness Month. While it’s tempting to focus on a particular product, I like to focus on client’s needs. There is a growing gap between retirement savings and potential income during retirement. In reviewing client’s finances, we frequently find that they fall anywhere from 15% to as much as 50% short in their chances of having income for their entire lifetime. That is scary for the industry – but it’s even scarier for the clients we serve.

 

I normally try to write at a high school level about the industry, the changing role of financial advisors and the realities of today’s retirement landscape. I try to avoid talking about our team and our specific successes, but if you’ll indulge me for a moment, let me give a bit of a humble-brag on our team, our solutions and how we can help your clients retire securely.

 

Ash Brokerage knows annuities are important, which is why we continually invest in our retirement division. We offer a full platform for retirement income planning:

 

Tools

Our JourneyGuide software allows you to co-plan with your client and show them the effects of any decisions they make. It’s a great way for advisors to gain clients’ trust and show the overall value in retirement income planning. The added benefit is that you can be more efficient in your practice. We offer tools to help illustrate the value of FIAs over fixed interest products, and we can show how the insertion of a FIA can increase portfolio metrics.

 

Business Solutions

We have developed a broad small-business platform around retirement issues. Moving pension plans from plan sponsors to carriers reduces the costs to small business, making them more profitable and more desirable for succession planning. And, the transaction secures the income for those loyal workers. We assist businesses and their attorneys with plaintiff cases and workers’ compensation payouts in an efficient and effective manner. Recently, we have reinvested and added non-qualified business structures to our arsenal of business services. These structures allow the seller to defer income to meet their needs and control taxes along the way.

 

Education

Knowledge is more important than ever before. Our team of wholesalers is now 20 strong, with collectively 500 years of experience in the field. Our internal desk will expand throughout 2019 to complement our growth. We also host regional meetings such as Retirement Income University, Go-Giver: The Five Laws of Stratospheric Success, and StoryBrand: Clarify Your Message.

 

Client Workshops

Gaining new clients is always important in building a successful business. Our turnkey seminar partnership with White Glove Workshops allows you to expand your client base with quality content and economical packaging for your target market. If you already run a successful seminar marketing strategy and just need content, we have over 15 slide decks with FINRA letters for your firm to review and use.

 

We have never been more bullish on retirement income education and the use of annuities. With the largest retirement demographic ever, and a gradual reduction in savings rates over the last two decades, financial planners have a challenge: create more income for longer periods of time with less assets than ever before. If we don’t reinvest in our businesses, our clients will lose – and not just lose us.

 

Winning Strategies: Join me in reinvesting in the retirement income industry and helping clients retire more securely.

 

 

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. His latest book, “Free Throw for Financial Professionals,” is available now – learn more at www.freethrowsforpros.com.

 

retirement annuity annuities