Advisor Today - March/April 2015 - (Page 38)
COvER STORy |
Top Tips for Selling
By Jean Feingold
Expand your annuity practice by determining your prospect's needs, educating
him, overcoming objections, addressing concerns, and helping him choose the
annuity that best suits his needs.
ANNUITIES CAN BE an important
a pension, Social Security, or other
part of a retiree's financial portfolio. For sources like investment income? What
parts of that income are guaranteed,
that reason, they have grown rapidly
and what are not?"
during the past few years as many
Americans plan for or transition into
The advisor must align those
retirement. Yet, quite a few Americans
income figures with the client's
who should own annuities don't. So
expenses and identify which expenses
how can you do a better job of getting are discretionary and which are nonthem to sign on the dotted line?
discretionary. The goal is to make sure
that the client has sufficient guaranteed
Determining the need
income to cover his necessary expenses.
First, you must sit down and talk
"The key to sorting out wants and needs
with your prospect and determine if
is that the client is going to determine
an annuity is a good choice for him.
what is essential," Fitzgerald points out.
"The advisor needs to find out what
"For some people, golf club membership
they've done so far, where they are
could be essential. Much is dictated by
from a planning perspective, what
the client's personal views." Expenses
their primary objectives are, and what
everyone normally must cover include
their concerns are in retirement,"
expenses for housing, food, utilities,
explains Saybrus Partners National
taxes, transportation and health care.
Sales Manager Mark Fitzgerald. "The
Some people would consider funding
advisor needs to know whether the
travel costs or grandchildren's education
client is transitioning into retirement,
necessary. To know what matters to the
is already retired or is planning for 20 client, ask.
years in the future. Where is the client
The Guardian Life Insurance
positioned now financially, and what
& Annuity Company, Inc. offers a
is he trying to accomplish? What is
retirement income gap worksheet to
his income to expense ratio? Where is
help clients with retirement planning.
that income coming from? Is it from
By calculating each client's basic
38 ADVISOR TODAY | March/april 2015
expenses and his expected sources of
income during retirement and adding two
to three percent for inflation, it is possible
to determine the baseline retirement
income gap for that client, explains
Jim Lake, National Sales Manager for
Guardian's annuity division. This gives
the advisor the necessary information to
help him work with the client to set up a
retirement action plan to fill that gap.
Another advisor, Adam Solano
with Lakeside Financial Group, uses
the following questions to learn what
the prospect understands about
* Do you know if you will have enough
guaranteed "pension like" income
during retirement to meet your basic
* Do you think Social Security will be
available for you?
* Do you know what happens to your
pension and Social Security income
when you die?
* How much money in taxes did you pay
the last few years on your investments?
* Do you know how much income you
will need to live independently during
your retirement years?
Table of Contents for the Digital Edition of Advisor Today - March/April 2015
From The Editor
The Power of Going the Extra Mile
The Advisor’s Real Job
How to Improve Your Life Sales
Lifetime Transfer Planning
I Did Not Check the Box!
How I Got a Jump Start on My Day
The Next Generation of High-Limit DI Plans
The Gift of a Lifetime
Preparing Your Clients for Retirement
LTCI Trends and Opportunities
LTCI Riders for the Sandwich Generation
Increasing Demand for Special-Needs Advice
Top Tips for Selling Annuities
Entering the 401(k) Market
Reaching Diverse Markets
NAIFA Government Relations
Sales Ideas for a Profitable Practice
Five Things Your Client Is Thinking . . .
Advisor Today - March/April 2015