First off, let me be clear that I am not saying that a “safe money place” is better than an “at risk money place.” Or, for that matter, an at risk plan better than a safe money place. I believe that there are times and places for each. I for one, have safe money places AND at risk money places. But the big difference is that you can lose money due to circumstances outside of your control. These can be natural disasters (Katrina), wars (Ukraine), inflation (high oil prices), or unnerving world events (North Korea testing a nuclear bomb). At the time of this writing I read all of the above in today’s papers and online. Do you think this might concern our clients? I sure do.
We have a great opportunity and a tremendous responsibility when dealing with our clients. They have a lot to say and a lot on their minds. Are you inviting their conversations? Are you listening? If you are, then you are picking up tremendous buying signals and you are probably very successful. Because they are telling you that they are concerned about long-term care needs and want a solution – (notice that there is a deluge of annuities and life policies with LTC riders hitting the marketplace?). You are also hearing that “big time” increases in their accumulation accounts are not the #1 deal on their hit parade. It’s the income. Allow me to repeat… IT’S THE INCOME (notice all the new income planning software and seminar programs hitting the market?).
In closing, the next 10 years will be very ‘sorry’ years for financial services advisors that are not listening and that are approaching clients in “the same old way.” It will be the most successful for professionals that are taking their responsibility seriously and are operating in an ethical and credible manner. Allow me to also opine that we also have a potential liability.
Are you offering long-term care insurance to your clients? If they decline, are you having them sign a ‘hold harmless?’ I think you should. Are you conducting audits on their life policies and repricing their term insurance? What about this hot potato? Are you discussing life settlements with your senior clients that feel that they no longer need all of their life policies? Whew! Makes your head spin, doesn’t it? So, connect with a marketing organization or agency that can lead you to profitable pastures and act as your shepherd. You can always lose due to circumstances outside of your control. But, there is no reason to “choose to lose.”