Where will you be when money is on the move? Will you be positioned properly with a significant number of clients when they experience a life-changing event? Are you staying in touch so that you are their go-to person when those life-changing events take place as they surely will?
According to a 2008 study by the Bureau of Labor and Statistics, half of people age 55 to 64 had an average tenure of less than 9.9 years. They may have retired or just changed jobs. Either way, over half of those surveyed could have moved money from their qualified plans from age 55 to 64.
There are 108 million Americans above the age of 50 according to the latest data at the U.S. Census Bureau. Establishing a relationship with the client at any level with any product positions the producer so that when the money moves, that producer will have an excellent chance of doing further business with that client.
What will establish the relationship? Any amount of assets under management is one answer. It is very dangerous to take the exception for rules and make them a rule. We hear of advisors who only take larger quantities of assets or they don’t want the client. What is not discussed is how they are able to do that.
For those of us who are not in a strong enough position to command such rules, we have to fight our way up the ladder to millions under management. In the meantime, how can we make money? Insurance is a great answer.
Establishing a relationship with an insurance product and making sure the client is clear on the fact that the advisor does more than sell insurance, can establish a relationship at a strategic time so that when their 401(k), 403(b), thrift savings plan, ESOP, profit sharing, deferred compensation, etc. are available, so is the advisor.
The advisor also pays the bills at home with insurance sales and grows the practice over time. This practice of establishing relationships can create nests of opportunity. If you do business with an employee of a large bank, it’s likely you will get referrals to fellow banking employees, thereby keeping the new prospect flow consistent.