Life
No-Cost, Lead Generating Platform
On Wednesday, September 20th, Simplicity Group officially introduced Patrick Kelly’s syndicated webinars as the the newest benefit to being a member of its best-in-class Tax-Free Retirement program. This no-cost, lead generating platform allows advisors to invite any potential and existing clients to hear bestselling author Patrick Kelly deliver an updated live presentation on the current and historical tax situation. By participating in this virtual event advisors will be able to peak client interest in taking action to seek help in protecting their assets, without you having to put on a costly dinner seminar and spend time away from your loved ones. Clients are not only educated on the current economic climate, they are also invited to take a personal inventory of their assets. This allows the clients to come prepared to meetings, creating a more streamlined and focused process around their concerns allowing you more time to focus on solutions to address the client’s needs.
A soft launch of the program took place this past summer and we were able to gather feedback and notes from the participating advisors. From this, a step-by-step best practices guide has been developed in order to provide some direction around this exciting new opportunity that includes timelines, email templates, call scripts, and more. Members who participate will also be provided with statistics regarding client participation to gauge success and provide any additional information that was shared or listed as a concern by the participants during the webinar. If you haven’t already, please reach out to your Simplicity life advisor development consultant for more information on how to incorporate this free and effective new program into your practice today.
Annuity
End of the year RMD conversations are as important as it gets to clients 72 and older. Whether it’s for this year or planning for next, having a strategy for your current and prospective clients can be a game changer.
Global Atlantic offers a legacy solution for clients who are looking to maximize legacy value on IRA and other Qualified assets with their ForeAccumulation product and optional death benefit rider.
The optional death benefit rider grows at a 7% simple interest growth rate for 15 years and is reduced dollar for dollar when taking withdrawals to satisfy Required Minimum Distributions. The examples shown assume a $100,000 IRA investment, Client age 70 at issue beginning RMD distributions in year 4 of the annuity.
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How Interest Rates affect Fixed Index Annuity pricing and why High Interest rates can be good.
The rates and caps or “pricing” of a fixed index annuity that an insurance carrier sets to pay clients interest is mostly determined (90%+) by the market average of the 10-year Treasury Bond yield rate
So, when the Federal Reserve raises its rates, the 10-year Treasury Bond rate follows and spurs the carriers to raise their rates and caps (pricing) to make their annuity products more attractive to clients.
The Evidence:
S&P 500 Annual Point-to point Cap Rates rise and fall with the Bond yield rates.
06/01/2018
10-Year Treasury Bond Yield of 2.83%
S&P500 Index Cap rate of 5.25%
03/08/2020
10-Year Treasury Bond Yield of 1.59%
S&P500 Index Cap rate of 3.75%
10/24/2022
10-Year Treasury Bond Yield of 4.25%
S&P500 Index Cap rate of 12.25%
Conclusion: Because the recent 10-year Treasury Bond rate increases allowed carriers to increase annuity pricing, now is the best time since 2009 to purchase a fixed index annuity.
Wealth
Investment & Trading Platform Update
The Value of a Comprehensive Research & Due Diligence Process
Managing and growing an advisory practice is no small feat. An advisor must wear many hats to successfully navigate an everchanging financial services landscape. To help you scale your business, Simplicity Wealth provides a curated roster of third-party asset managers that have excelled through the ups and downs of many market cycles.
Our time-tested research and due diligence process reviews third-party asset management firms from both a qualitative and quantitative perspective. An ongoing review of the investment mandate, the process backing it, and the performance persistency of the strategy provides valuable insight into solutions that can help meet your client’s varied investment objectives. Today, the Simplicity Wealth platform offers 21 distinct asset management firms that include 255 separate model portfolios that span different investment approaches and styles.
The Simplicity Wealth roster of managers is the “best of the best.” Not only must the managers be accepted by our investment committee, but they must also be superior within their category and amongst their peers. This application of a disciplined process saves you extraordinary time and ensures that you are adhering to your fiduciary duty through a defensible methodology. Add in a proprietary risk scoring model that focuses on your client’s feelings regarding potential loss and you have a valuable proposition for setting proper expectations and helping your clients remain committed to their financial plan.
Market Update: A Historical Perspective of Equity Market Returns
The Benefits of a Long-Term Mindset
Equity markets are constantly reacting to new information. Most recently, interest rates hit a 16 year peak due to concerns regarding consumer price inflation and a continuing restrictive Federal Reserve monetary policy to tamp it down. With narrow equity market leadership this year and September being a historically challenging month for the S&P500 index, it could be comforting to move money out of the market. Unfortunately, it is impossible to time the top or the bottom of the market. “Staying the course” is not only important to validate that your assets are in alignment with your personal long-term investment goals, but it can also make a difference in the probability of achieving those goals. Equity markets reward patience and perseverance.
Time-Based Probability of Equity Market Returns
Data: Unless otherwise noted, data for charts, graphs, and tables are for illustrative purposes only and were sourced from First Trust Advisors, L.P. Market Pulse is provided by Simplicity Wealth, LLC a SEC Registered Investment Adviser. Simplicity Wealth is wholly owned by Simplicity Group and an affiliate of Simplicity Solutions, LLC, a SEC Registered Investment Adviser. Sub-Advisory services provided by Simplicity Solutions. The information contained within has been obtained from various sources and is believed to be accurate at the time of publication. This commentary cannot be redistributed or republished. The views expressed herein reflect the views of the author as of the date of publication. These views may change and should not be construed as investment advice. This material is for educational purposes only. Past performance is no guarantee of future results. The information is not intended to constitute an investment recommendation for, or advise to, any specific person or entity.
Asset-Based Long-Term Care
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Managing and growing an advisory practice is no small feat. An advisor must wear many hats to successfully navigate an everchanging financial services landscape. To help you scale your business, Simplicity Wealth provides a curated roster of third-party asset managers that have excelled through the ups and downs of many market cycles.
Marketing
Want to increase your closing ratio? Then you have to answer these questions…
This might sound daunting to you…but what’s much more daunting is the decision for a prospect to trust their life savings with someone.
At the end of the day, you need to know who or what you’re competing with to increase your chances of connecting with your prospect. Is it a boutique independent firm? Is it the allure of an institution? Is your prospect a do-it-yourself-er and are they your competition? Is buyer apathy your competition?
You have your process and there are a lot of specific questions to be answered…but until you get these following questions answered by your prospect, it’s nearly impossible to separate yourself from the pack.
- “Why are you here today?”
- “What are you not getting currently that you wish you had?”
- “What are the most important things about making this decision so I can be sure to address them?”
- “What is your decision timeframe?”
- “What other types of firms are you talking to? And may I ask who they are?”
- “What would be your ideal emotional outcome in regard to finding the right financial partner?” (relief, peace of mind, joy, etc.)
In the end…you have to be able to tell the person on the other side of the desk why your firm makes more sense than any of their other options. And this message can be delivered more subtly than you might think.
This isn’t about sales. It’s about helping someone make the right decision. It’s about saving time. And it’s about making the decision easier for people.