I was watching the Super Bowl on a business trip in 2017 when the New England Patriots made their famous comeback from 28-3. The people sitting around me were saying, “This game isn’t over” and “Brady is going to win.” I was struck by their incredible confidence, even as the Patriots fell behind by 25 points. In part, confidence comes from having a plan and the experience to execute it.
Recently, some of my favorite teams have been giving me the opposite feeling. We’ve all been there: that sinking feeling when our team is behind, with little confidence in the firepower on the bench to bring your team back. The team lacks the talent to compete. The coaching staff is not equipped to make the necessary calls. You look for anything to hold on to hope – if the team could just work that much harder or the coaches could lead that much better.
But as the game progresses, the pit in your stomach grows. The seconds tick down, but the team never catches up. Once the clock finally runs out, it’s almost more relief than a disappointment – at least the anxiety you felt as the seconds ticked away is finally over.
The final countdown makes a great metaphor for retirement planning. You begin your retirement game when you transition out of the workplace. The score is 0-0. By the time you reach the first 10 years of retirement, you begin to realize that you can’t buy the same things that you could when you first retired. By the time you get to your late 70s, it’s clear your assets won’t catch up to your total income needs. That same hopeless feeling hits the pit of your stomach. Your assets can’t work any harder because you can’t take the volatility.
As those assets diminish, it’s like the clock ticking down in the final minutes of the game, knowing the inevitable is about to happen – a loss. The anxiety leading up to the loss is just as strong. You are trying everything to stop the inevitable, but you know it is going to come. But it doesn’t have to be that way. Unlike sports, every American should be able to enjoy a successful retirement.
How do you do that?
You must understand the risk of longevity with your clients and address it. If you don’t, you put your client in a position of a potential loss. They are relying on your expertise to create a plan and execute. Make sure there’s a source of guaranteed income so your clients have confidence that they won’t have to stage a comeback – they’re already set up for the win.
Learn about how to transfer the risk of longevity to vehicles and implement those strategies. Give your client confidence they can win the retirement game.
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.
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