Everywhere you look today, people are being squeezed economically. Gas is approaching $5.00 per gallon (and may already be there by the time you read this). The cost for food is inflating rapidly. By the time next winter rolls around, people may have to choose between eating or staying warm.
As costs mount, traditional sources of cash have dried up. Home values have plummeted, so there’s less home equity to draw on. Personal and business loans are harder to get. And as the economy has weakened, jobs are tougher to find.
These trends hit Americans squarely in their financial solar plexus. As their cash flow constricts, they may consider risky financial options. They may push for speculative investments in order to generate emergency cash. Cancel their life insurance for the cash value, leaving their children unprotected should they die. Pull money out of their annuities even though it triggers a taxable event, surrender penalty, or both.
Competing advisors may convince your clients they have the answer to all their problems and convince them to defect. Now your cash flow is hit right where it hurts.