When I became a financial advisor 10 years ago, I remember asking my clients what they wanted to do when they retired. Nine times out of 10 they would respond, “I want to sit on the back porch and watch the grass grow.” And they meant it. They wanted to permanently place themselves in the slow lane. Now, fast forward to 2007. When I ask today’s clients that same question, their response is completely different. They want to go, see, and do, when they want and how they want. It’s a total paradigm shift.
So what does this mean to you? How you communicated with your clients about retirement 10 years ago is vastly different than what most pre-retirees are looking for today. If you want to experience a significant breakthrough in your insurance services business, then it’s critical that you begin helping people create and design a retirement strategy that is custom-tailored just for them.
For just a minute, think about how many choices people have when it comes to purchasing insurance products and investing their hard-earned money. There are virtually limitless options. Let’s face it: Most people typically don’t purchase a life insurance policy or an annuity because of the fancy name or the company they’re sold by. Pre-retirees purchase these products from the insurance professionals who use these products as tools to help their clients reach their retirement goals and dreams. For you to truly stand out in a crowded marketplace, you have to develop a reputation of being more than just an insurance salesperson. Instead, you must become the doorway to your client’s dreams. Here are four steps to get you started.
Step one: Go for the goals
Instead of asking your clients how much money they think they need in retirement, have them focus on the purpose of their retirement. What do they want to see and do? What do they want to accomplish in this next phase of their lives to create significance for themselves? What do they want their lasting imprint to be on the Earth? Sure, they’re deep questions, but anybody can ask how much money they need. Once they’ve described what they really want to do, then you can begin to help them put a price tag on what it will cost. You want to stand out as the insurance professional that connected with them on an emotional level and helped them create the retirement they’ve always dreamed about.
Step two: Design a transition plan
Most people work 30 years saving their money to retire but often give little thought to the actual adjustment that will occur when they do retire. How will they handle walking away from work friendships and relationships? How will they cope with not having the responsibilities of people reporting to them or running a sales territory? What will they do with their new free time? The bottom line is that every client will respond differently. If they disliked their job, they will probably adjust quickly. However, if they are an executive or business owner, it can be more difficult to say goodbye to the old job. It is important for you to talk through this with clients. Help them create a preliminary plan so they have something to “retire to” and not just “retire from” when they’re handed the gold watch.
Step three: Recreate the paycheck
I have found that two of the biggest fears people have in retirement are worrying about how much money is enough and worrying where their income will come from once they retire. By explaining to your clients how you’ll generate income from their investments in an easy-to-understand way, you will build a huge level of trust and put their mind at ease. Consider setting aside two to three years’ worth of income so it is not subject to market fluctuations. People are used to receiving their paycheck once or twice a month. When they retire, let them know you can set up their investment income to be paid to in the same way.
Step four: Plan with a purpose
Let clients know that when they retire, you will have a closer relationship with them. Set up quarterly service meetings to review their accounts. Send your clients articles of interest on places they’ve talked about traveling to. And most importantly, tell your clients directly that you plan to walk down life’s pathway with them into their golden years. You are going to be with them every step of the way to help them maximize and protect their retirement nest egg.
Commit to implementing these four steps in this week’s meetings with clients and prospects. I think you’ll be surprised at the positive response you get from your clients – and you’ll love all the referrals they send you.
Derrick Kinney is a recognized expert on affluent marketing and author of the Amazon best-seller “Master the Media to Attract Your Ideal Clients: A Personal Marketing System for Financial Professionals.” He can be reached at www.moreaffluentclients.com.