40. Address unspoken worries.
For use with parents who think their children are spendthrifts and will literally blow everything they leave to them: Sell the parent a SPIA, using Life/20 year certain and immediate ANNUITIZE it. Do not use a lifetime withdrawal plan that might allow the beneficiary to commute the monthly income to a lump sum. By using the Life/20 year certain, you appeal to the parent with the lifetime income, even though they live to age 150. More important, the children are going to draw that monthly income for any balance of that 20 years without commuting to a lump sum and spending it. Example No. 1: An 87-year-old grandmother puts $250,000 into a SPIA using the above terms. Her grandson is bi-polar and will spend everything he can get his hands on during his down cycle. She drew the monthly income for only five months before passing away. The grandson has tried everything in the book to get a lump sum and failed — he will enjoy that monthly income for 19 years and 7 months whether he likes it or not. Example No. 2: Make a substantial profit out of the SPIA for the beneficiaries by using the same terms of Life/20 year certain. Consider this: A female, age 91 with $200,000 into the contract. She is willing to take a little less income to accomplish this plan and she will receive $1,117.41 monthly for the rest of her life, but the beneficiaries will receive the same amount for any remaining months of the 20 year certain period. That figures out to $13,408.92 per year times 20 years equals $286,178 total or a profit (guaranteed, by the way) over the $200,000 invested of $86,178. Plus, since this is non-qualified money, the tax free portion is $833.59 monthly or a 74.6 percent exclusion ratio. Try it; it works wonders.
— Wally Garrett
39. Find the right Centers of Influence.
Get to know one or two estate attorneys well; one or two accountants with affluent client bases well. Keep in touch with them on a regular basis.
— Mitch Frankel
38. Meet more than one need.
We advertise for short-term health insurance. By doing so we have the opportunity to possibly talk to people in between jobs and may have a roll-over opportunity.
37. Seek quality over quantity.
We target two or three large companies where we have existing clients and learn their benefits better than the competition. Once we do, we build our prospect database with help from existing clients and then market exclusively to this niche group over the next several years; we nurture prospects until they become clients and ultimately retire and rollover their pension and/or 401k (or who refer co-workers who are retiring).
— Todd DePinto
36. Pursue your passions.
Forty years ago I couldn’t sell very well, so went into management and did quite well. Twenty-three years ago I went into private practice and once again found I couldn’t sell very well. But I was passionate about entrepreneurship and active in entrepreneur support organizations, and today I have a solid practice with people I met because of my passion. You might call it prospecting by walking around. These days I’m hooking up with a colleague 25 years my junior and we are beginning to direct mail the boomer market.
— Bill Lehnertz
35. Plan ahead.
Send a pre-approach letter and simply ask your prospect if they ever plan to retire and also ask if they have been hurt at all in the last three or four years in their planning. Ask, what do you plan to do different if and when the next downturn happens? Call them in a couple of days.
34. Discuss the timing of Social Security planning.
I do Social Security planning with my clients. When they see how much more their Social Security payouts can be by waiting to age 70, we then discuss how to bridge the gap. If this is not an issue, then we look at how to augment their Social Security.
— Wayne Sutton
33. Bring up the healthcare issue.
If your garage catches on fire, isn’t the best solution to put out the fire and save the house? Why don’t we do that with our retirement planning? The missing link in the vast majority of plans is long-term care protection. Reallocate a portion of the assets to cover this potential catastrophe in order to safeguard the bulk of the assets.
— Peter Keim
32. Sell across multiple product lines.
As a starting point, help people understand Obamacare and Medicare. That becomes a foundation for me to sell other senior products and retirement plans.
— David Salt
31. Schedule regular reviews.
Do annual reviews with your clients and ask to meet the children now so that you know who you will be working with in the event your client passes away. As a result of this introduction, you will end up adding more clients to your practice.
— Jan Maltby