To sign up for a LIVE DEMO of the industry’s best retirement planning software (OnPointe), click on the following link (you’ll want to after reading this newsletter/watching the example video!).
www.onpointesoftware.com/retirement-planner-demo
The GIF video below is a 5-second video that starts with a client who runs out of money at age 88 (their assumed age of death) with constant rate of return on their investments every year and then shows what happens with a -30% drawdown the year before retirement (money runs out 9 years earlier (and showing a huge “retirement income gap”)).
To watch a 3.5-minute video more fully demonstrating the power of OnPointe to show sequence of return risk, click on the following (the simplicity/power are unlike any tool in the industry):
https://onpointesoftware.com/sequence-of-return-risk
What is Sequence of Return Risk?
It’s the risk that the stock market (where the client has money invested) will have a large drawdown (crash) at the wrong time prior to or in retirement.
What are the consequences of having a large drawdown at the wrong time?
Clients run out of money years early in retirement (or have less (or a lot less) money available). This will be a client’s biggest fear IF they understand the problem.
Who wants to make sure clients understand sequence of return risk?
Advisors who have tools to mitigate this risk!
What tools can be used to mitigate this risk?
FIAs, IULs, “risk-managed” portfolios, structured notes, etc.
For advisors who don’t use these tools and mostly use asset-allocated/passive/buy/hold portfolios, there is no upside to talking about this risk because such an investment philosophy is not a proactive philosophy to mitigate large drawdowns.
How do most advisors communicate the sequence of return risk problem?
1) The advisor gives a 3-, 5-, 10-minute speech trying to explain it.
2) By using a PDF with a pre-created fact pattern showing a chart that shows the problem.
Do either of the two really drive home the problem? Many times, the answer is NO!
What about using a tool that would GUARANTEE the client would understand this problem and understand it in less than 30 seconds?
OnPointe Retirement Planning Software
www.onpointesoftware.com
If you are using Retirement Analyzer, E-Money, MoneyGuide Pro, etc. you are missing out!
When we built the OnPointe Retirement Planner, we wanted to give advisors a tool to clearly and quickly communicate the sequence of return risk problem. We did and it’s AWESOME!
If you are trying to communicate to clients the very real problem of sequence of return risk AND show them tools you can use to mitigate this issue and secure for them more secure/predictable cash flow in retirement, I highly recommend you sign up for a live demo so you can learn about the software (and the capabilities that make it a MUCH better sales tool than others in the marketplace).
Recent Newsletters
If you missed some of my recent ones, you missed the ability to download a few things…
Download the Peak Boomers Impact Study
To download this study, click on the following link:
https://advisorshare.com/peak-boomers-impact-study
Use a Decision Tree to Decide if You Should Become Series 65 licensed
With the DOL regs looming, I thought it would make sense to remind readers about the decision tree I created to help advisors determine if advisors should get their Series 65 license. To download a decision tree that you can fill out, click on the following:
https://advisorshare.com/decision-tree
