Focusing on Retirement Income for Your Clients

Presented by Richard Mangiameli Advisors are very good at accumulating wealth for their client’s but now need to focus on what their client’s want for retirement income.  A recent survey completed by Deloitte Center for Financial Services found that more than 55% of respondents are not confident that their savings and income will support them through retirement.  Additionally, a third of those surveyed with a net worth of at least $1 million and close to retirement age, have not consulted a professional advisor for their retirement needs. Read the attached article from “Financial Advisor” and start focusing on your clients’ retirement needs. Click here for article.  

Are Income Riders Always the Best Approach?

Presented by David Corwin In my opinion, Income Riders are not always the best approach.  I will agree that they do give the client some satisfaction in knowing how much their income would be.  However, the power in the knowing I don’t think mitigates the fees, coupled with the outrageously long surrender periods that are sold most of the time.  What happens in most cases is that the agent presents only one product and doesn’t look at the different options that would lessen the surrender period, thus giving the client more choices at some point and not locking them up for 16 years or longer. It’s an absolute certainty that if you show more than one option you will make more sales and the client will be more satisfied with their decision.  Now, I will admit that it might be a slower sales process, but shoving a product down their throat doesn’t do them any favors either. Here’s an example of what I’m talking about.  I ran a top carrier product with the highest bonus and rollup rate on a 50 year old male with $100,000 and let it cook for 10 years before I started income and came up with $9,845.59 in annual income.  A green to red apple comparison with the same income rollup without a bonus would only reduce the income in 10 years to $8,950.54.  That’s less than $900 and the kicker would be that the surrender period is reduced by 6 years. It is also widely known that an indexed annuity without a bonus performance should, and in most cases, does outperform bonus indexed annuities.  With that in mind, the client will undoubtedly have more money in the long run anyway.  All I’m really talking about is choices.  Give your client choices and they will make the right one the majority of the time, and you will have a more satisfied client.

Annuity “Doublers” can help with Long Term Care

Presented by Richard Mangiameli More and more seniors are experiencing the need for, as well as the stress associated with, Long Term Care insurance (LTCi) benefits.  Seniors are concerned that when they need help with some activities of daily living (ADLs) and are required to move into an assisted living facility or require medical help with nursing home benefits, that the cost of those facilities could wipeout their hard-earned savings and assets.  They know the importance of having LTCi benefits, but are also concerned about the cost of a LTCi policy. This is where an annuity that has an income doubler can help clients protect their assets and help close the insurance gap.  With an annuity doubler option, there is no underwriting and there is only a small fee incurred, typically less than ½ of a percent. The payment stream could be as long as ten years.  As an example: take a male who is 65 years old and repositions $250k into this annuity.  The income five years later will be $24k per year.  If you cannot perform two of the six ADLs, the income will double to $48k per year. Following is an article I read from the NAIFA SmartBrief by Andrew Murdoch that further explores this topic. http://www.marketwatch.com/story/how-annuity-doublers-can-help-with-long-term-care-2015-04-21

Positioning for Sales Success

Presented by Richard Mangiameli Today we hear that, as an advisor, we need to become a resource for our clients.  We need to build a relationship so strong that clients will call us seeking advice for a good attorney, accountant, other insurance lines we may not offer – even to the point of asking for a good contractor to remodel or a roofer. It is important for each advisor to leverage relationships with attorneys, CPAs, bankers and other advisors or agents, using everyone’s expertise to provide quality service and products to each client. We don’t want to forget about the sale and the importance of positioning the sale.  I read the article below in the NAIFA Annuity Outlook magazine that provides some really good insight.  As an advisor we need to seek first to understand our clients’ concerns and needs.  No product will fit every need.  We can’t force a square peg into a round hole.  We need to understand the client’s goal and then develop the right strategy and supply the right products to achieve those goals. Remember that no sale will be complete unless you can build a good relationship with your prospect.  The trust factor is very important and you need to be sure to listen to what your client is saying throughout every step of the sales process. Click on the link below to read the full article about positioning for sales success. http://annuityoutlookmagazine.com/2014/07/positioning-for-sales-success/  

You Shred It

Presented by Deb Strong I have been in the financial services industry for 30 years.  One thing for sure is that agents and advisors are always looking for new, creative and fresh approaches to get in front of their clients and add value to them for client events. Identity theft is a huge problem for all clients.  I know people whom have had their identity stolen and it was a nightmare!  One idea I would like to share is an event that I helped an agent host – a “You Shred It” event for his clients.  This event took place at the agent’s office; we hired a shredding company that came to his office with a truck and an industrial-size shredding machine.  When the invites went out to clients, they were told they could bring boxes of documents with them that needed shredding. We also hired a local policeman that talked to the clients about ways to prevent their identity from being stolen.  The clients that attended this meeting loved it.  We served refreshments and had time to mingle with the clients that were there.  I had clients come up to me and say they loved this idea. For more details call Deb Strong at 800 397 9999, Ext. 6328.