Talk about poor word association: mention “taxes” and the mental equivalent of “root canal” comes to mind. Surprisingly, it’s also associated with a major staple of retirement income—Social Security.
Yes, one is paid while the other is received, but both taxes and Social Security involve the client doing something that is required by the government, namely filing. A further caveat is that Social Security encourages (or should encourage) the client to develop a coordination strategy with their financial plan. The joy felt by the client in doing so is reflected in the numbers; two-thirds of Americans currently do not have a formalized financial plan and three-fourths do not have a financial advisor, according to a study released by Northwestern Mutual in May (see Americans Worry About Finances, but Just 1 in 3 Work With Advisor).
Yet lessening the burden for clients when it comes to planning and filing for Social Security will go a long way in building trust, gaining referrals and growing the advisor’s business. Here’s why.