Kitces: 6 Questions to Help Clients Productively Navigate Market-Related Fears
3 Key Takeaways:
· Start with questions that lead to reflection instead of giving clients numbers and logic.
· Follow the sequence of emotion first, reasoning second, and logic third.
· Helping clients re-gain control through self-driven clarity is the key.
This Kitces article is re-circulating after the last few weeks of Iran, market volatility, and uncertainty. "Problem Solver" is a hat advisors often wear. When it comes to calming clients' market related fears, this Kitces article suggests a questions based approach that helps clients find self-driven clarity vs the traditional logic, math, and reasoning based approach.
This approach helps clients process what they're feeling and regain a sense of control. I've listed the 6 questions below, but you can get example client & advisor interactions towards the bottom of the article linked HERE
1. When you think about this concern, what's the hardest part for you?
2. What would make you feel more in control right now?
3. Have you faced uncertainty like this before, and how did you handle it?
4. If you had to explain this decision to a friend, what would you say?
5. Looking back on this moment in the future, what will you be glad you did?
6. What's the smallest step you could take today that would help you feel better?
Spotlight Client Solution*
A+ Rated AND 11% Cash Flow at Age 65
A 60 year old needs a net return of 7.16% each year for 30 years if they want to use $100,000 and generate $11,314/year of income starting at age 65 and have it last until they're 90.
Alternatively, that same 60 year old can get that guaranteed from North American with their Income Pay Pro 10.
This cash flow generates more income with less money than traditional fixed income. Pairing that with increasing a portfolio's equity exposure leads to better outcomes.
Notable Client Solutions*
8% Immediate Cash Flow for Life
Talcott's EverGuard Assurance is topping the charts for younger retirees who need income now!
· $8,280/year of income is guaranteed for a 65 year old depositing $100k
· 7.57% IRR at age 90
· Excellent service on new business and existing policies
10% Guaranteed S&P Annual Cap
Revol One has removed the two biggest problems with accumulation FIAs:
Rate Renewals: The annual cap is contractually guaranteed to stay at 10% for all 7 years.
Indexes that Don't Perform: The index is the actual S&P 500. Not some hyped up index.
Focused on high consumer value annuities and being led by the mid 2000's CEO of Allianz, Revol's making waves.
*Rates may be subject to premium banding. Products may not be available in all states. Replacement must be suitable and meet all requirements.
At Foundational Income, we strive to bring relevant topics and solutions to your fingertips in a straightforward way. We don’t see the need to keep products nor carriers a mystery. If you’d like to discuss any of this in more detail, give us a call!