Will a combination of offense and defense help your clients reach their retirement income goal?
Every successful soccer team has that magic combination of offense and defense. When it comes to your clients facing retirement, the same combination may work to get them to the goal line. After all, you can help your clients keep going for more—more growth, that is, while also helping them find defensive protection against the risks they face.
Will the markets’ ups and downs postpone my retirement?
Do you have clients like Seth? Now that retirement is less than a decade away, he’s not just concerned about having enough for retirement. He’s also wondering whether an unexpected drop in the stock market will make it impossible for him to retire when he’s ready.
When is staying on the sidelines less than safe?
After all, in the last 10 years before retirement, Seth needs to keep his money growing so he’ll have income to last a long retirement. The traditional 4% rule of thumb would say that if he reaches his benchmark of saving around a million dollars, those savings may only safely generate $40,000 a year in retirement income. More recent research shows that, with Americans living longer and bond rates near historic lows, 4% may be optimistic,1 and $40,000 of income wouldn’t give him the lifestyle he’s envisioned.
The retirement income playing field
82% of Americans approaching retirement are concerned about what will happen to their investments if the market drops.2
Investors are holding $19.4 trillion on the sidelines.3
Have a conversation about protected income
You can help clients like Seth work toward his retirement income goals while still feeling like their retirement future won’t get pummeled in the markets.
- For guaranteed growth on Seth’s income base, no matter how the market performs, consider how a variable annuity with an income benefit might fit in Seth’s portfolio. He could get dependable growth until he’s ready to retire, then enjoy protected monthly income for life.
- For safe growth with no market exposure, consider how a fixed indexed annuity may fit in Seth’s overall plan. He’ll enjoy the confidence of knowing he’ll never lose money, and he’ll appreciate that his money isn’t invested in the markets. But with options for growth potential tied to a market index, he’ll have the chance to keep his savings growing ahead of a long retirement. Then he can add protected monthly income for life.
While both offense and defense matter, it’s impossible to win a game from the sidelines. That’s why speaking to your clients about adding protected growth to their portfolio could be a game-changer.
Partner with us
Contact your Lincoln representative today at 877-533-0265 to learn how you can help add more certainty into your clients' retirement income plans and build deeper relationships. For additional tips and insights, make sure you follow us on LinkedIn and Twitter .
Lincoln Financial Group® affiliates, their distributors, and their respective employees, representatives, and/or insurance agents do not provide tax, accounting, or legal advice. Please consult an independent advisor as to any tax, accounting, or legal statements made herein.
Annuities are long-term investment products designed for retirement.
1 David Blanchett, Michael Fink and Wade Pfau. "Low Bond Yields and Safe Portfolio Withdrawal Rates." Morningstar, January 21, 2013.
2 Source: Lincoln Financial Group, “Market Volatility & Retirement Income Study,” 2018.
3 Federal Reserve Statistical Release, "Financial Accounts of the United States," December 6, 2018.
Statistic includes money in overnight money market funds, checking accounts, savings accounts, currency, and CDs.
About the author
For more than 22 years, Christopher H. Price, JD, LLM, CLU®, ChFC®, AVP, Advanced Sales, Lincoln Financial Distributors, has helped advisors and their clients accumulate, distribute and transfer annuity assets by using a holistic approach. In 1983, he began his career as a trust officer with Sovran Bank (now Bank of America). Chris moved into financial planning, and followed that by managing an insurance agency that served some of the wealthiest families in the country. In 1994, Chris joined Delaware Investments, formerly a member of Lincoln Financial Group, where he was responsible for the product management of Delaware mutual funds and eventually Lincoln variable annuities. From 2000 to 2004, Chris used his expertise to help financial advisors and their clients with advanced case issues. In 2005, he transitioned to the Lincoln Advanced Sales team. Chris holds a BA in history from Vassar College, and law and master’s degrees from the Marshall-Wythe School of Law at the College of William & Mary.