The Zone: Opportunity and Need


The Zone: Opportunity and Need

Back when I worked as a retail financial services professional, every once in awhile I had one of those days when I was in “the zone.” You know the feeling – when everything you recommend is accepted and implemented by the client. Unfortunately, that feeling doesn’t come often enough.

When I was in the zone, I was prepared for presentations and had evidence why the clients should accept my recommendations. But, when I look back to my most successful days as a retail planner, I must admit two other factors were present: opportunity and need. When those two factors crossed paths, nearly everything was a slam dunk. 

I was most successful when a client clearly had a need they wanted to fill while, at the same time, they had the opportunity, or means, to sure up the gap. My sales were easier when those two factors existed, regardless of the time I spent preparing for the presentation or how good I was at selling that day.

The same potential exists for all of us when it comes to asset-based long-term care. There has never been a bigger opportunity or greater need to protect families and their wealth. With the opportunity and need intersecting for this generation and the next several generations, we can stay in “the zone” for several decades.

The Need

  • There is a 69 percent chance that a 65-year-old couple will need long term care during retirement1
  • Approximately 11 percent of the U.S. population has secured individual long-term care insurance 2
  • That means 89 percent of Americans are completely unprotected from a potential long term care event2

 The Opportunity

We still have $471.1 billion of annuities on the books of insurance carriers that are not being used for income or annuitization.3 They were purchased for an emergency like long-term care. Those annuities – variable, fixed and indexed – all have embedded gains that will create taxable distributions either at death or during retirement. What better use of those dollars than to provide tax-free benefits?

By exchanging an old nonqualified annuity to purchase an asset-based long-term care annuity, you could continue the tax-deferred growth. And, if the asset is used for a long-term care event, the basis and the gain are returned tax free.

Get in the Zone

There is nothing better than turning tax-deferred gains into tax-free benefits for clients. The opportunity exists and the need is huge. But, you need to recognize the crossover before someone else does.

Winning Strategy

Look for moments when opportunity and need cross over. Now is one of those times with asset-based long-term care.

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!

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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.

 

1LongTermCare.Gov, “How Much Care Will You Need?”: https://longtermcare.acl.gov/the-basics/how-much-care-will-you-need.html

2Forbes, “Who Owns Long-Term Care Insurance?”: https://www.forbes.com/sites/howardgleckman/2016/08/18/who-owns-long-term-care-insurance/#3e4566b62f05

3LIMRA Secure Retirement Institute, Retirement Fact Book, 2018