What Your Clients Should Know Can Hurt Them

What Your Clients Should Know Can Hurt Them

Today’s author is an experienced insurance industry operative. In his article, he lays out five risk factors faced by every individual.

Part of the advisor’s brief, he says, is to assure that clients don’t get overwhelmed by the technicalities of insurance policies, trusts and annuities and lose sight of the global picture. Let’s examine what he’s learned.

Disability is something that happens to other people: that’s what most clients believe, a blind spot that informs how they plan. According to the government, though, more than a quarter of the population enters retirement with some form of disability. Accidents are the most feared but least likely cause: disorders of the muscles (arthritis, for example) and skeleton are major threats, as is cancer. Plan to face these threats, he counsels.

Here’s a concern that is the cause of some merriment, but no one laughs when it happens: lawsuits. Americans love a good day in court, unfortunately (ask Judge Judy). The case is similar to the one above: everyone knows about it and jaws about it, but few lock down the insurance protection to face it.

Those darn taxes. There’s an army of accountants and lawyers ready to keep our bill down and properly paid up. But in the realm of retirement, tax issues are often forgotten, our author says. For example, if you don’t plan carefully, income taxes can devour your retirement benefits. Fortunately, a range of products is available to control this threat.

Here’s a seeming conundrum: severe market downturns are coming, but you can’t know when. In all investment activity, timing is crucial and this factor is particularly acute in retirement planning. Skilled, active management is essential and certain classes of annuity can protect the client from unexpected shocks on retirement.

For more information, please read:
The Top 5 Threats to Your Client’s Financial Life | ThinkAdvisor

 

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