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Retirement Planning > Retirement Investing

How Retirement Planning Is Like a Round of Golf

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Planning for retirement is like playing a round of golf.

The three stages of planning for retirement line up with the three strokes used in golf; teeing-off, chipping and putting.

The ball represents the assets of your client and retirement is the hole way down at the end of the greens.

(Related: Baby Boomers Will Spend Their Retirement Money on Golf and Travel)

Sand traps and water holes represent downturns in the economy, causing your client to save more or delay retirement, fast undulating greens threaten your client’s funds with inflation if not accounted for.

1. Teeing Off

When teeing off, your client should take an aggressive swing at the ball to get the most yardage down the fairway, likewise, your client should get the most yardage or gains on their retirement funds during the long-term accumulation phase.

One solution is to use indexed universal life (IUL).

IUL can bring aggressive returns by using different crediting options designed to capitalize on different market conditions, each linked to a variety of market indices adjusted for risk tolerance.

2. Chip Shot

Pull out the irons, your client can see retirement 10 to 15 years away and is at the height of their earnings potential.

IUL can really sizzle by over funding the premium, just like with the chip shot, your client’s funds should rise straight up and grow quickly when over funded and structured properly.

In a typical portfolio, your client should adjust for preservation while maintaining max accumulation during this phase, IUL has done both by limiting the downside to zero and earning market driven returns.

3. The Putt

Retirement is around the corner, one to five years away, and you want to treat your client’s funds the same way we hit/putt the ball, very conservatively.

IUL has built-in advantages over other retirement vehicles because your client can attain market driven returns until the day they decide to retire without risking past gains, they are locked in.

Plus, crediting options can be adjusted for more conservative returns as well as the index the policy is linked to, while still protecting the client’s family with the underlying tax-free death benefit.

Congratulations, your client made it to retirement! IUL doesn’t stop at the accumulation phases, it gets better. Now your client can receive a tax-advantaged income stream based on the accumulated funds in the policy via a loan that does not need to be repaid if structured properly.

So, how did your client do? Did your client come out par? Pull off a birdie? Or go limp with a bogey?

  • Birdie: Early retirement. (Over-funding the IUL policy.)
  • Par: Retire as planned. (Paying target premium into IUL.)
  • Bogey: Late retirement. (Paying minimum premium into IUL.)

Lastly, some clients and golfers have handicaps pushing up their strokes. In the game of life, just as in golf, some people face especially bad luck and may experience a need for long-term care (LTC) services. IUL can provide funding for long-term care through an LTC rider.

The fact is, if you don’t help your client properly plan for retirement, they may never get to enjoy a round of golf in their golden years. IUL is excellent for all three phases of planning for retirement and can provide a tax-advantaged income to supplement their retirement needs while protecting your client’s family and providing long-term care coverage. If used correctly, IUL is unmatched for helping your client into and through retirement.

 See you on the golf course!

— Read Insurance: The ‘Putter’ in the Retirement Golf Bagon ThinkAdvisor.

Richard Aubert (Photo: Self)

Richard Aubert, CLU, is an independent strategy and sales consultant at in Austin, Texas. He can be reached at [email protected].


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.