Friday, March 11, 2016

Portfolio Protection!

As a financial service professional, you take upon yourself the role of helping your clients build their financial futures.  Undoubtedly, during your years of training for this demanding profession you have come across the financial planning pyramid (at least one of MANY versions), used by financial advisors to explain the concept of asset protection and financial priorities.

As you will recall, the foundation of the financial pyramid is protection yet many clients’ portfolios are completely unprotected from the “4 Risks of Retirement.”  Those risks are: 1) Longevity Risk; 2) Interest Rate Risk; 3) Market Risk; and 4) Tax Risk.  As a financial services professional, you take upon yourself the role of helping your clients build their financial futures. But many advisors have not dealt with the wolf that lurks in the shadows, the 5th risk to retirement…the financially devastating effects of expenses stemming from Long-Term Care (LTC).

Many top advisory firms are taking a fresh look at a better way to assure the foundation of protection is secured before discussing investing.  Today we know that less than 10.7% of Americans have the correct protection in place to deal with the wolf.  So are we suggesting you sell them LTC insurance?  Nothing could be farther from the truth!  In fact, we are not fans of LTC insurance and don’t believe it’s the best option for dealing with managing risk.

Advisors need to take this growing LTC risk seriously.  Not only is the client’s portfolio at risk from an LTC illness they (or a spouse) may suffer, but an advisor’s income is in jeopardy.  How?  Clients begin to withdraw hundreds of thousands of dollars out of accounts that are being managed by the advisor to deal with this uninsured risk.  This is portfolio protection for the client and it is portfolio protection for the advisor!
There are two questions every financial professional should ask clients: 
  • You may never need care, but if you did, how will that affect your family, spouse, adult children, family dynamics and finances?
  • If you need care, how will you pay for it?

Today there are NEW solutions to the catastrophic problem of a Long-Term Care event.  This solution allows clients to reposition and leverage an existing asset, typically money in CDs, savings, annuities, IRAs or retirement plan funds, as a guaranteed single premium.

We have found that many advisors don’t feel comfortable discussing these gaps in protection with clients so they simply never raise the issue.  But what about the likelihood that 70% of those reaching 65 will experience an LTC event before age 85 that will last, on average, 3.9 years and cost $100,000 per year?

Our Elite Marketing Program can help you articulate this problem and motivate prospects and clients into taking action.  This solution can help safeguard a client’s assets by providing income tax free money to handle LTC expenses in their own home or in an assisted living facility.
Additionally, should the client’s needs change or the client simply changes his/her mind at any time, the client can request a full refund of the single premium.

Special Highlights of this Solution:
  • This is Not an LTC Policy
  • Premiums are 100% Guaranteed - No Risk of Increase
  • Joint Life Coverage
  • Lifetime Benefits
  • Qualified Money Allowed
  • Turn Highly Appreciated Non-Qualified Annuities Into Tax-Free Money
Helping your clients protect their assets and prepare for the future is essential as 10,000 Baby Boomers retire each month.  By addressing this critical LTC risk, you will open new doors of opportunities and unearth new clients, creating new revenue streams.  This will also differentiate and grow your practice, protecting it in the long term.  Top advisors are asking their clients these questions and adopting these new strategies – shouldn’t you too?

Table Bay Financial Network is America’s Premier FMO combining preferred products, unparalleled marketing and world-class training designed to drive and increase revenue while drastically cutting marketing costs.   Call us.



No comments:

Post a Comment