On the side of the 1987 NCAA men’s basketball championship ring, the manufacturers have engraved a word – toughness. During our run to the championship, Indiana University basketball had to come from behind in five out of six tournament games. We were often behind until very late in the game. Two of the games came down to last-second baskets, including the championship.
In the Hollywood version, they might have called us The Comeback Kids. But I’ve never heard the '87 team identified that way. Instead, there was a quiet confidence within the team. No one likes being behind – it requires mental toughness to continue fighting on.
Part of our end-of-game determination was due to months of preparation for the championship. We executed our game plan better than the other team and did it late in the game. We knew the other team’s plays and practiced them for weeks. Those late, game-winning free throws were almost like going through the motions after weeks and weeks of late-game simulations at practice. Our preparedness meant far less late-game stress.
Without practice, we may have had a different outcome. I wrote about about that sinking feeling when a loss is inevitable. It’s like seeing account balances slowly deplete, knowing you are going to lose the retirement game.
Do you have clients anxious about their retirement?
There is no need for stress or anxiety surrounding anyone’s retirement. Their confidence will grow the same way our confidence grew: with repetition. Just as a team runs plays to prepare for games, clients need to run simulations predicting their income many times before they retire.
Retirement planning involves a lot of unknowns. Longevity, healthcare, tax brackets, sequencing of returns and a potential long-term care event are all factors to watch for. If income is a concern, you owe it to your clients to discuss guaranteed income options. These options are better placed early in the planning process versus later at age 70 or beyond. With a plan in place, you can avoid the stress and anxiety of market fluctuations that affect income stability.
Take the stress out of your client’s end of game decisions. Focus on planning, preparing and putting the client is a position to win today.
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.
© 2018 Ash Brokerage LLC.