Follow the love with a
dynasty stretch strategy

To understand what your clients need from you, just follow the love. Ask any parent, and they’ll tell you they never stop worrying about their children, even when they’re grown and have families of their own.

In fact, having grandchildren can make a parent’s protective instinct even stronger. After all, I often think that while people love their children, they feel in love with their grandchildren.

It’s helpful to remember that special intergenerational love when counseling your clients on legacy planning. In my conversations with clients, I’ve found no one works hard their entire life just to have every last nickel spent before they die. We all want something left to help ease the lives of our children, grandchildren, nieces, nephews and other family members we hold dear when we’re no longer around.

So, how can we help provide clients with a retirement income strategy that also helps them meet this more emotional goal?

This is where the dynasty stretch or multigenerational income strategy comes into play. I like to refer to it as an inheritable family income plan.

By including multiple generations when creating an annuity-based income stream, clients can access the benefit during their lives, then pass on the benefits to each living generation of beneficiaries in an enduring reminder of their legacy. Clients’ children—and later, grandchildren—will receive a monthly check that bears grandma and grandpa’s names and provides a concrete way to keep their memories present. Now that’s a meaningful income strategy that goes beyond just money.  

What does this mean for you and your practice? As the old saying goes, “Differences matter, similarities don’t.”

As advisors, we have an opportunity to introduce clients to strategies and ideas they can’t find anywhere else. Your clients won’t hear about this inheritable family income plan on TV—it requires an advisor’s help to understand the tax code and the rules of annuitization. When you help your clients address their financial goals and values with sophisticated strategies like this one, you’re differentiating yourself with both clients and centers of influence. You’re also building relationships with the next generation or two.

To learn how to implement this strategy, including a step-by-step instructional Brainshark, contact your Lincoln representative. And keep following the love to understand your clients’ needs.


About the author

Michael R. Harris, CFP®, CLU®, ChFC®, CFS®, CES®,  is vice president of Sales for Lincoln Financial Distributors. Since 1999, Mike has helped financial professionals gain a better understanding of the challenges and opportunities surrounding income distribution planning. He joined Lincoln in 1990 as a securities trader and led the creation of the bond trading desk. In 1992, Mike transitioned into a Regional Life Marketing Director in support of Lincoln’s life insurance products and soon after began working closely with American Funds Distributors to start Lincoln’s American Legacy sales team.