Build Income WITHOUT Sacrificing AUM

Mike McGlothlin   |   September 2021   |   2-minute read

Wayne Gretzky was quoted as saying, “I tried to deliver the puck where the person is going to be versus where they are today.” It’s a good strategy for hockey, and it’s also very appropriate as you work to transform your business.

Currently, before they retire, your clients are focused on accumulation. That could be through their 401(k), an IRA or assets under management. But over the next several years, by 2025, 18 million Americans will have left the workplace and joined the ranks of the retired. Unfortunately, today the average retirement account balance is about $130,000 — not enough to fund the type of retirement many of us are hoping for.

To further complicate preparing for a successful retirement, from a business standpoint, is the shortage of qualified advisors. Currently, there is one financial advisor for every 76 baby boomers. And in just five short years, there will be 163 baby boomers for every financial professional.

All of these changes mean that we're going to have to generate more income for longer periods of time with the least amount of assets than ever before.

Today's economic situation is full of low-interest rates. Those rates, however, are starting to creep up and have a negative impact on our total return. Worst yet, we are experiencing higher risk in bond portfolios. In 2007, that risk was just over 4%. Today, it's about 6.05%. This increase further complicates our decisions about how to generate yield and income inside of the portfolio. And there’s the risk that your client's assets could drop to zero before their end of retirement.

In addition to your clients running out of assets, planning the way you always have puts your reputation and potential referrals at risk. And, more importantly, your assets under management will slowly erode. It’s time to look at a better, more innovative way, to plan for income.

To do that, you need a new technique. You need resources and tools to adapt in this new world looming ever closer over the horizon. Instead of worrying about how to get started, take the first step today and reach out to our retirement income consultants. They can talk with you about the new and different approaches and tools that can help you evolve—such as our JourneyGuide software that can help you efficiently and effectively income plan as your clients shift from the accumulation phase to the income phase.

But our most important resource isn’t a tool, it’s a strategy. We’ve talked a lot about the necessary shift from asset accumulation to income planning. But it’s a concept that some advisors are hesitant about, especially if you’re worried that making the shift will cost you when it comes to assets under management. But what if you found a strategy that focuses on income planning while helping increase your assets under management? There is such a strategy, and we can show you how to get started. But first, let’s talk about why it matters.

Our Income Alpha approach can help you increase income — something we know our clients aren’t generating enough of. We regularly see 20% increases in the amount of income we can deliver clients, along with an improved probability of success. In fact, we're able to leverage protected income to free up some liquidity, allowing you to address other concerns such as leaving a legacy, transferring wealth or planning for a long-term care need.

If you’re ready to help your clients reach their income goals, without lowering your assets under management, we have an innovative solution. Find out more about Income Alpha.

Mike McGlothlin
About the Author

Mike McGlothlin, CFP®, CLU®, ChFC®, LUTCF®, NSSA® is a bestselling author, industry-renowned speaker and expert in growth strategies for financial advisors.

Today as the Executive Vice President of Retirement for Ash Brokerage, he leads 65 direct reports who have grown a business line 300% in the last six years and is now one of the largest wholesaling teams in the Brokerage General Agency space.

As a professional guide he can help any financial advisor looking to create exponential revenue growth, to find new clients and better streamline their operations by incorporating his simple methodologies and proven models.