Making your prospects uncomfortable can make you very comfortableArticle added by Karlan Tucker on March 19, 2010
Karlan Tucker

Karlan Tucker

Littleton, CO

Joined: August 18, 2006

My Company

Tucker Advisors

For many years, I have earned a lot of money by solving other people's problems. It's been said that if you help enough people get what they want, you will also get all that you want. Now I'm going to tell you how I've done it.

What is it that everybody wants in retirement?
  • Security
  • Good health
  • Peace of mind
  • The ability to travel
  • Time with the grandkids
  • To work only if they enjoy it, and not because they have to
  • Confidence they will never run out of money, and can give what's left to the kids and grandkids
What do they need to accomplish this?

They need a secure income, the ability to afford the best in health care, and time to enjoy the important things in life.

What do advisors need to enjoy life to its fullest?

A high income so that he or she can provide for their children's education, become debt free, and save a bundle for retirement.

So, how do we accomplish both of these things?

We do it by providing the solutions to the problems for everyone that is nearing or already in retirement. The needs are great, because what most people are looking to for retirement is unreliable.

Most people are depending on the following for their retirement:
  • The Federal government, through Social Security and Medicare

  • The volatile stock market

  • The low-yielding bank

  • Their previous employer's underfunded pension (if they even have one)

  • The (falling) value of their homes

    None of these are fully reliable, and offer only partial solutions to the demands and needs of retirement.
There are a lot of risks in retirement, including taxes, inflation, and health care costs.

Reducing or eliminating these risks, while providing the solutions for retirement, will make you a lot of money. In fact, you can become wealthy, not at the expense of your client, but because you bring tremendous value to the relationship. The greater the value you bring to the relationship and the more problems you solve, the more you get paid. I love being knowledgeable enough to solve some of my clients' biggest problems and, in turn, receiving big paychecks.

There are two ways you can increase your own earnings -- by solving big problems for wealthy people infrequently, or by solving common problems for the middle class frequently. I like to do both!

The two things that have to happen to make a sale are: first, to get people uncomfortable with what they are currently relying upon for retirement, and second, get them comfortable with the solutions you are offering. It sounds elementary, but the reality is that not many advisors are great at doing both of these things. If you are hearing, "I have to think about it," you are not spending enough time getting people uncomfortable with their current situation. The unreliable legs of the stool need to be knocked out from under them, so that they will then realize the precarious situation they may well be in and then be highly motivated to want to do something about it now, not later.

What information do they need to know in order to understand the precarious position they are in?
  • They cannot rely upon Social Security, because the government has raided the trust fund, taking all the money out and replacing it with IOUs. The current obligation is being met not from funds saved by our government, but by the selling of treasury bonds to foreign governments. The ability to do this indefinitely is not available at our current rates of expenditure. Soon, the debt will be so large that other nations will balk at buying our bonds, causing our government to raise the rates they pay, thereby increasing the burden of our interest payments.

  • They cannot rely upon their pension, because it is underfunded or because a pension is no longer being offered.

  • They cannot rely upon the stock market, as evidenced by the fact that we have just lived through the Lost Decade(TM) - ten years with no gains. In the 2009 Dalbar report we learned that the average diversified portfolio has earned just 1.6% annually over the past 20 years.

  • They cannot rely upon their bank because 2% interest takes 36 years to double their money and 1% takes 72 years.

  • They cannot rely upon their home equity, because it has been greatly reduced or obliterated. Twenty-five percent of all homes in America are worth less than their mortgages. In Nevada, the worst state, 70 percent are upside down.

  • As a result of our government's mismanagement of revenue and a lifetime of overspending, we are going to see huge tax increases and rampant inflation.

  • Health care costs continue to rise, with Alaska's taking the cake for the most expensive nursing homes, at $15,000 monthly.
Now that we have created a discomfort with what they may be relying upon for the security of their retirement, let's provide the solution.

I like insurance products, because they can do something that no other product can do, and that is to pool or manage risk. Insurance companies are the experts at risk management.

Can you think of any other product outside the fixed indexed annuity that:
  • can guarantee you will never lose any principal to the stock market,

  • participates in a percentage of the gains,

  • locks in the gains on autopilot without triggering a taxable event, with no market timing required,

  • provides guaranteed liquidity, with some products offering up to 50 percent of the account balance,

  • provides 100 percent liquidity on most products within five years as a result of the minimum guarantee,

  • provides opportunity in a variety of economic conditions, and

  • pays an income guaranteed for life that can rise to offset inflation?
Some of the newer products also offer a guaranteed return of principal at any time during the life of the product. Many FIAs do this with no fees or low fees.

In my opinion, this is one of the greatest financial tools ever created. Most everybody should own one, including you. It will make you a better advisor when you own what you recommend.

The key to realizing your own financial dreams is held in helping others reach theirs. In order to do that, you need to market yourself aggressively, determining to tell this powerful story several times every day. Manage your money and time wisely. Don't be afraid to make mistakes; just learn from them. Tell your amazing story with great conviction and passion. I tell advisors over and over, "People care more about your confidence than they do your competence." Look them in the eye and tell them what Van Mueller says to his clients: "Mr. and Mrs. Smith, I have information that will change you and your family's life forever. And I'll tell you something, if you don't know this information, it will place you and your family in dire financial jeopardy."

You can do it! You have the information; and assuming you have the conviction, you, too, will enjoy financial peace of mind.

I wish you great selling!

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