Annuities

Don’t Blend In. Stand Out.


Annuities

We’ve all been warned against the dangers of succumbing to “herd mentality” and blindly doing something just because everyone else is. There’s a reason that clichés survive, usually based on a grain of truth. As humans, we feel validated when we know that others are doing the same thing or following the same thinking.

Take asset allocation, for example. Not long ago, ThinkAdvisor.com published an article warning large brokerage firms against using a 60/40 allocation strategy. On the plus side, the article noted that larger firms are recognizing how global markets affect investing. The point of the article, however, is that bonds may not produce the same return as in previous years. Treasury yields are low and global events have put foreign bonds in negative yields. Those are all real possibilities that need to be considered when advising our clients about investments.

But despite these warnings, financial advisors continue to present solutions that are eerily like previous recommendations. The recommended allocation presented different asset classes with more and less risk than bonds. Arguments were made that the discussed asset classes performed better than bonds. But they didn’t ask some important questions:

  •        For how long will the discussed asset classes outperform bonds?
  •        When will real estate suffer a recessionary meltdown?
  •        Are we monitoring credit as closely as we were directly after the financial crisis?
  •        If the goal is to find a replacement for bonds, previously used to balance the volatility of equities, why do we think private equity firms with fewer disclosure requirements will balance equities in the future?

And here’s where herd mentality rears its ugly head. We continue to do the same thing we’ve always done. The same thing everyone else is doing. We chase yield and returns.

And that leads to an opportunity for you.

Move Away from the Herd

Here’s your chance to gain market share, grow your business and attract clients with innovative new ideas. While everyone else is repeating the same old lines and offering the same tired recommendations, you can provide a new strategy to your clients — one that is impactful beyond preservation of capital and a few basis points in yield. Thinking differently makes you stand out in your community and with your clients. And it attracts prospects.

Providing a solution that meets the demands of changing demographics and reaches the most needed segment of the population – near and current retirees – positions you as the thought leader in your market.

Anyone can move money with a click of a button to chase yield. Honestly, that is the least valuable service we provide. But as a thought leader, you’ll have clients coming to you for ideas that work.

 

What Makes You Different?

You still may hold yourself out as a money manager with a focus on asset allocation. And you’re right —asset allocation is important. But in the new world of relevance, you must also provide income. The more stable and dependable your retirement income strategy is, the better positioned you are to take advantage of the greatest shift from the workforce to retirement we have ever seen. 

By providing income strategies, you separate yourself from the herd of other asset gatherers and managers. That separation wins clients and prospects. They don’t want to pay for something they can get from anyone else or even do themselves with today’s technology.

They want answers to their most difficult problem – retirement income.

 

It’s Time to Stand Out

You won’t separate yourself as a thought leader by following the herd. Clients don’t win in investing when they invest based on herd mentality, and neither should you. If you do the same thing as others or stick to the outdated strategies used in the past, you will get the same results. It’s time to transform your business and step out in front.

 

Transformational Tactic

Separate yourself from the herd. Recognize the opportunity to transform your business by taking our free course.

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