Reading time: 7 minutes
October. No other month gets my investor antennae extended to its full length like October. I read an interesting quote last week from a Wall Street expert reacting to the market’s recent 264 point drop, the largest drop in almost two months.
“It’s not clear what caused this sudden shock to the system but it serves as a reminder about the dangers of complacency.”
And, all of a sudden I look up and it’s October. Damn.
Earlier this year we introduced a training class called: Moving Money, Protecting Clients. Its purpose was to give agents a reason to talk with clients about a market that we believed at the time (and still do) was overdue for a “correction”. While I’m not an investment advisor, I am an investor and the memories from 2007-2008 (and several unhappy Octobers over the last 30 years) are crystal clear in my mind.
So, for agents reading this: consider this my gentle October nudge to not be complacent with your clients and their hard-earned money.
Here’s the goal: reconnect with clients who have ridden the wave of growth over the last four years and take them through what I like to call our “defensive solutions”. When times are good it is sometimes hard to get clients to think defensively. Suffice it to say, moving money from an offensive to a defensive position is a decision clients don’t take lightly and it requires patience on the agent’s part. Even if you instinctively know the answer you run the risk of moving too quickly. They will press you on how you came to your conclusion. They’ll want to know what research supports that conclusion.
This approach is new for many clients. We are asking them to move their hard earned money out of the market—which is all many of them have known—into lower risk, defensive options. It’s a paradigm shift for many clients and agents will have to be very sensitive to this. In the end it’s about adding value and helping clients put their money in a safe place.
I am talking to clients today about three safe, low risk solutions: Fixed Indexed Annuities (FIA), Multi-Year Guaranteed Annuities (MYGA) and Single Premium Immediate Annuities (SPIA). Each has its own specific low risk benefits, but all three fit into the category of defensive.
So, if you haven’t begun the process of reconnecting with your high potential clients now is the time. Don’t let yourself get complacent when everything seems great in the market.
And, one more thing, it’s October.
If you want to talk more about this please call 866-547-8780 and talk to me on ext. 103 or Drew Gurley on ext. 102.
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Call 866-547-8780 and talk to Drew Gurley, ext. 102.
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- Fact Finder: end of year means planning. Get prepared to help your clients get prepared. Our Fact Finder provides an excellent platform to better understand client needs, plans and concerns. Click here to download the Redbird Fact Finder.