Productivity is never an accident. It is always the result of a commitment to excellence, intelligent planning, and focused effort. While we’ve all fallen victim at one point or another to getting in our own way, the new year is the perfect opportunity to take a step back and establish a clear path toward conquering your goals.

Have you identified areas where there’s room to grow to increase the success of your business? In this episode of Money Script Monday, Sara motivates financial professionals to increase their success by identifying pitfalls and solutions to their productivity challenges.

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Albert Einstein famously said, “Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it.” While credit card companies are a great example of those who understand compound interest and profit because of it, many people don’t realize that they can also take advantage of compound interest and reap the benefits by growing their own money through indexed universal life policies.

While personal finance can be complex, these amazing opportunities can hide in plain sight, patiently waiting to be discovered and utilized to brighten your financial future. In this episode of Money Script Monday, Luke details how compounding interest and specific tax codes built into IUL contribute to this financial vehicle’s ability to provide tax-free supplemental income in retirement.

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Brittany Maples Highlighted in Broker World Magazine

I’m a young, anxious, confused, and overwhelmed consumer and if you’re reading this, there’s a high likelihood that you retain more financial knowledge than me. I disclose this at the risk of some readers stopping here before they get to the end because I believe this presents a much more advantageous opportunity than it may seem. As a young professional born on the cusp of the Millennial and Gen Z divide, I have a unique position that allows me to understand the perspective of a largely untapped client base in the financial services industry and with the greatest wealth transfer in human history unfolding, your client base is going to start looking a lot like people such as myself if it doesn’t already. By providing you with my insights on what older generations need to know about working with younger generations, my goal is to help bring about a closure of the gap between the world as it is and the world as it should be.

The desperate need for financial advising among both Gen Z and Millennials is not something to ignore. In a survey by The Harris Poll in June of 2023, it was revealed that 82 percent of Gen Z (ages 18-26) and 84 percent of Millennials (ages 27-42) say there are financial topics they need financial advice on. Growing up through the major periods of devastating economic downturn such as the lost decade, the great recession, and a global pandemic, we are more familiar than we would like to be with the precarity of financial stability. That being said, you do not need to convince us that we need your services–we already know, we just do not know what to do about it. If you want to tap into the 76 percent of Gen Z and 71 percent of Millennials who haven’t sought advising from financial professionals, there are three big things you need to understand about Zillennials.

The first big thing is that we are fully aware of the uphill financial battle we face. Secondly, we need to trust you to work with you. Lastly, and perhaps the most important of all, is that our communication preferences will dictate how our relationship forms and develops.

As I mentioned previously, Zillennials are fully aware of the uphill financial battle we are facing. In fact, 65 percent of Gen Z and 74 percent of Millennials believe they are starting further behind financially than other generations at their age. The combination of our exposure to detrimental economic disasters, skyrocketing cost of living, and a lack of dependable financial knowledge are all major contributors to our inability to establish strong financial foundations in adulthood–not because we are frivolous with our money and waste it all on Instagram-worthy avocado toast. While we feel set back by the aforementioned economic conditions that are out of financial professionals’ control, there are things that you can do to address these problems in a way that makes us open to not just any solution, but your solutions.

To view the full article, please click here: View Article in Broker World Magazine »

Contact LifePro Today!

If you are looking for a partner who cares about your clients as much as you do, please reach out to LifePro Financial Services at 888-543-3776. We are a premier IMO located in San Diego, CA that has been in business since 1986 and was originally founded by Bill Zimmerman.

Our focus is getting advisors in front of the right prospects through our proprietary digital marketing systems while offering industry best-case design and reporting, professional back-office support, and competitive compensation with incentives.

Personal finance author Jonathan Clements once said that retirement is like a long vacation in Las Vegas – the goal is to enjoy it to the fullest but not so fully that you run out of money. After all, the golden years aren’t just about retiring to something but having something to retire to, and the best way to accomplish that is to ensure that you’re financially prepared for that day.

A recent report from the Employee Benefit Research Institute and Greenwald Research determined that Americans’ confidence in attaining a comfortable retirement has dropped the most since the 2008 global financial crisis. The leading contributors to these concerns among retirees are inflation and the fear of outliving the assets meant to support them.

Retirement is supposed to be when you enjoy the fruits of your labor, not worrying about whether or not those fruits will spoil, which is why creating a guaranteed lifetime income is your golden ticket to the stress-free retirement you deserve. In this episode of Money Script Monday, Michael illustrates the value of having guaranteed lifetime income as an essential component of a healthy retirement plan.

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In light of the new DOL Proposal and media storm that has followed, I wanted to provide a simple comparison between a SPIA and FIA.

During a recent press conference, President Biden acknowledged the benefits of annuities and called moving a portion of someone's retirement assets into an annuity as 'sound advice.' However, he slammed FIAs because of their higher commissions, complexity, fine print, and hidden fees. I think we're all in agreement that FIAs are more complicated when compared to SPIAs. Additionally, there is a higher commission incentive on a FIA relative to a SPIA.

I would argue that calling FIAs a scam is far from the truth. Sure, certain annuities offer more consumer benefits than others. Also, some people in our industry are illustrating out-of-control FIAs that can create unrealistic expectations for the potential customer. Despite the pitfalls, we firmly believe that FIAs can be a good addition to a client's retirement portfolio when done the right way for the right person, specifically when a bond alternative is used for a portion of a retirement plan for clients looking for downside protection with some upside growth potential.

"They're putting their self-interests ahead of their clients, and they are scamming Americans out of hard-earned money," said Biden. "People should be able to … get advice from a so-called expert [knowing] they are getting real help, not getting ripped off."

The White House highlighted fixed index annuities as a problematic product — rich in conflicts of interest — that could cost retirement savers as much as $5 billion per year.

"When advice is sound, many annuities can be steady, reliable sources of retirement income, much like Social Security," said Biden.

Source: Yahoo Finance

To illustrate the difference between a SPIA and an FIA for retirement income, I used a 70-year-old single male with a $400,000 rollover. In the analysis below, we're assuming that the client has ample other assets, and this is just a portion of their overall portfolio.

I compared using a SPIA with Installment Refund, both with and without a 3% annual compounded COLA inflation adjustment vs an FIA that offers increasing income. Rather than using farfetched returns, I illustrated a 100% allocation to the fixed account, which is currently crediting 3.1%. Yes, the fixed rate could increase or decrease after the first contract year, but this provides a realistic baseline expectation.

While the FIA provides a lower initial income amount when compared to the two SPIA options, it does offer a non-guaranteed income cross-over at age 84 (compared to the level SPIA payment) and significantly more cumulative lifetime income in the client's later years of life.

At age 90, the cumulative lifetime income is $689,417 with the SPIA no COLA, $737,617 with the SPIA w/ 3% COLA, and $815,831 non-guaranteed with the FIA.

The FIA projects over $126k (18% increase) in higher cumulative income when compared to the level income SPIA. At an even longer life expectancy, the FIA income IRR is a whopping 8.7%, which is likely a much higher return than we can expect from other fixed-income assets.

In addition to the much better liquidity, the FIA provides considerably more protection to the beneficiary should the annuitant die too soon.

For example, if this consumer died after 5 years of owning the annuity, the level income SPIA would provide a $235,853 installment death benefit paid out over the next 7 years. The FIA installment death benefit is almost $200,000 higher at $435,577 (based on the current 3.1% fixed rate) and would pay out over 5 years (2 years sooner than the SPIA).

After 12 years, when the SPIA installment death benefit hits $0, the FIA projected installment death benefit is $139,490 and would be paid out over 5 years to the beneficiary.

In looking at the actual math behind these two products, we believe it is unfair to call an FIA a scam, considering it pays the consumer more projected income over a longer life expectancy, provides more liquidity/flexibility in case of emergencies, and a higher installment death benefit to the beneficiaries in case of premature death. Yes, the FIA has more moving parts, a higher level of complexity, and requires more consumer education when compared to a SPIA. Also, they can be over-illustrated and certainly missold. Despite these drawbacks, we stand by these products and their ability to help solve the American income crisis.

$400,000: SPIA No Inflation Adjustment:

$400,000: SPIA With 3% Annual COLA Compound:

SPIA: Non-Inflation Adjusted

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SPIA: 3% Annual COLA Compound

Illustration purposes only.

FIA Increasing Income

Illustration purposes only.

Contact LifePro Today!

If you are looking for a partner who cares about your clients as much as you do, please reach out to LifePro Financial Services at 888-543-3776. We are a premier IMO located in San Diego, CA that has been in business since 1986 and was originally founded by William Zimmerman.

This material is intended for educational purposes only and is not intended to serve as the basis for any purchasing decision. Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. The hypothetical example is shown for illustrative purposes only and is not guaranteed. The characters in this example are fictional only. Your actual experience will vary. Policy loans and withdrawals will reduce available cash values and death benefits and may cause the policy to lapse or affect any guarantees against lapse. Remember to consider your client's individual circumstances and objectives when discussing their specific situation. Additional premium payments may be required to keep the policy in force. In the event of a lapse, outstanding policy loans in excess of the unrecovered cost basis will be subject to ordinary income tax. Withdrawals are generally income tax-free unless the withdrawal amount exceeds the amount of premium paid. Tax laws are subject to change. Clients should consult their tax professionals. Investment advisory and financial planning services are offered through LifePro Asset Management, an SEC Registered Investment Advisor. Registration does not imply a certain level of skill or training. Investments involve risk.

One of the biggest communication pitfalls that advisors fall victim to when talking with clients is focusing entirely on what they’re saying and neglecting to consider what that information is actively doing in the client’s mind. After all, even if you think you have the most effective message or pitch in the world, it’s not benefitting you if it’s not resonating with prospects and converting them to clients.

Altering the approach of your message to reposition the client and their needs as the central focus of the conversation can result in productive conversations around their needs and how your services can address them. In this episode of Money Script Monday, Allee offers tools and tips for increasing conversions by speaking to individual client needs and reinforcing their confidence in your authority.

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While many praise the benefits of Indexed Universal Life insurance for its ability to provide income to supplement retirement, there is a big caveat to acknowledge. The policy must be properly structured, funded, and designed for the specific policyholder and their unique situation to provide the most beneficial results.

So, what are some of the benefits and drawbacks of IUL? How can it be the most beneficial? As you will learn in this video, it depends on the policyholder's unique financial situation and what features would benefit them most.

In this episode of Money Script Monday, Brian provides a transparent explanation of IUL while demonstrating how it can create guaranteed income through different case studies.

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Advisory Services offered through LifePro Asset Management, LLC. The information presented here is not specific to any individual's personal circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. Guarantees are backed by the financial strength and claims paying ability of the issuing company.

It’s often said that nothing good comes easy, but that doesn’t mean everything good has to be difficult. For instance, fixed indexed annuities are great additions for many to their financial portfolios, but far too many believe that FIAs don’t have a place in their holistic financial plan because they are too difficult to grasp.

It’s especially unfortunate when unnecessarily complex, excessively detailed, and confusing explanations portray them as unapproachably perplexing and result in missed economic opportunities. Nobody should miss out on something good simply because they find it difficult – especially when it doesn’t have to be.

In this episode of Money Script Monday, Kyle demonstrates that fixed indexed annuities don’t have to be complex by breaking down FIA basics and detailing the processes involved in the accumulation and distribution phases.

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Confusion is the first step to knowledge – but knowledge can only be reached if additional steps are taken. When going through the retirement planning process, you might find that you have a lot more “first steps” than you anticipated. But by learning more about the options available to you, you can benefit from making more informed decisions for your future.

One of the options you may have at your disposal is an Indexed Universal Life policy. As a form of permanent cash value life insurance, IUL can provide many benefits such as a tax-free death benefit, tax-deferred growth, and tax-free access to capital that can be used for large purchases, other investments, and tax-free retirement.

If you have any confusion about how IUL grows and accumulates value, watching this video is your next step toward clarity and knowledge. In this episode of Money Script Monday, Adam sheds light on how the cash value component of an IUL policy accumulates across various index crediting methods.

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Greg Horak Highlighted in Broker World Magazine

Halloween is the quintessential celebration of all that is spooky and scary but even with the holiday being over, financial professionals may still have year-round fears about reinsurance. Submitting a life insurance application large enough that it must enter the reinsurance marketplace shouldn’t bring up those same fears that ghosts and goblins do. At one point I believed that the biggest fear an advisor had was the conversation with their high-net-worth clients about life insurance being an integral tool in their estate plan. But after 25 years in the industry, I’ve learned that their greatest fear is the feeling of helplessness and ignorance when the word reinsurance is uttered. The good news is, unlike the zombies and ghosts of Halloween, those reinsurance fears can be put to rest for good by the end of this article.

So, what exactly is reinsurance?

Reinsurance is simply an arrangement in which one insurance company, known as the “reinsurer,” provides coverage to another insurance company, known as the “ceding insurer.” The primary purpose of reinsurance is to help the ceding insurer manage and mitigate risks associated with the policies it has underwritten. By ceding a portion of its risk exposure to a reinsurer, the ceding insurer can protect its financial stability and reduce its exposure to catastrophic losses.

There are also a few terms that must be clarified in order to understand the underwriting process when reinsurance comes into play.

Internal Retention Limit

This is the amount of death benefit that an insurer can issue on an individual without ceding any of the death benefit to a reinsurer. In the event that the insured passes away, the insurer is solely responsible for the death claim if the insurer retained the entire death benefit.

Auto-Bind Limit

Even if the amount applied for is over the insurer’s retention limit and they must cede part of the death benefit to a reinsurer, this process is usually transparent to the broker and to the proposed insured. This is due to auto-bind agreements between the ceding insurer and the reinsurer. For example, if the auto-bind limit between a ceding insurer and a reinsurer is $20 million, then as long as the total amount being applied for is within this $20 million limit, the ceding insurer can approve the policy without the reinsurer reviewing the file. However, if the amount being applied for is over $20 million, then the entire file must be sent to the reinsurer for review, and the reinsurer must agree with the ceding insurer’s underwriting opinion before a policy can be issued.

Jumbo Limit

The jumbo limit is the amount of coverage inforce and applied for with all carriers on an individual’s life. The most common jumbo limit with most carriers is $65 million. To illustrate this, if your client has $35 million inforce and wants an additional $35 million, this exceeds the jumbo limit (assuming $65 million is the jumbo limit). In this example, one of the biggest mistakes that can be made with respect to jumbo limits would be to submit formal applications with multiple life insurance companies for $35 million each, with the intent to accept the single best offer. This can cause significant problems when multiple ceding insurers contact their stable of reinsurers to reserve what they believe is $35 million of capacity but the reinsurers are receiving requests to reserve a total of $70 million, $105 million, or even $140 million of capacity.

Now that we have established the basic terminology of reinsurance, what is the best way to proceed with a case that exceeds a carrier’s auto-bind or jumbo limits?

To view the full article, please click here: View Article in Broker World Magazine »

Contact LifePro Today!

If you are looking for a partner who cares about your clients as much as you do, please reach out to LifePro Financial Services at 888-543-3776. We are a premier IMO located in San Diego, CA that has been in business since 1986 and was originally founded by Bill Zimmerman.

Our focus is getting advisors in front of the right prospects through our proprietary digital marketing systems while offering industry best-case design and reporting, professional back-office support, and competitive compensation with incentives.