InsurMark INSIGHTS Fall 2022

Fall 2022

In this issue of InsurMark Insights , we’re sharing insight ambitious advisors need to help them build more successful, sustainable, retirement income practices. Highlights include: • A disconnect between what people want and know about annuities creates opportunities for advisors.

A disconnect that spells opportunity InsurMark invited Dr. Wade Pfau to share insight with our advisors about his latest research regarding how advisors can best educate and guide affluent pre-retirees through the retirement income planning process. The response was awesome! Two-thirds of the population prefer some form of a safety-first approach, most advisors are offering a variation on a total return strategy. Among the many nuggets of wisdom that Dr. Pfau dropped was the revelation that while there are four viable retirement income planning strategies, no one strategy fits all consumers. A pre-retirees psychological, behavioral and financial factors all play a role in defining their preferred retirement income strategy. And while two-thirds of the population prefer some form of a safety-first approach, most advisors are offering a variation on a total return strategy. Pfau’s Retirement Income Style Awareness (RISA) tools provide consumers and advisors with a data-driven process for understanding their income strategy preference. His research shows that aligning the consumer’s preferences with the income strategy leads to better outcomes. Learn more, RISA and Dr. Pfau’s retirement income planning research, watch our on-demand “Longevity Conversations That Work” webinar. CLICK HERE >>

• The one marketing strategy that doubles your convertible audience.

• Two quick tips for incorporating video marketing into your business.

• How switching to annuitized income increases retirees spending power two-fold!

• Something to talk about… Retirees need coaching during the Reinvention Stage.

THE GREAT DISCONNECT Over 4 million Americans will be retiring in the next 12 months. You might think that’s 4 million different ideas about retirement. But there’s one strong common interest. In a recent essay , Michael Finke PhD, and fellow at the Alliance for Lifetime Income’s Retirement Income Institute, stated (and we agree): “Americans want the lifetime income security that only annuities can provide.” His statement is backed by research published in the 2021 Protected Retirement Income and Planning Study , which revealed:

• 91% of investors rated protected retirement income as very or moderately important; and

• 95% feel that it is somewhat or extremely valuable to have guaranteed lifetime income to supplement Social Security income. According to Finke, the study also revealed a disconnect between what people want and what people know about annuities. Not-so-surprising stat : Fewer than half (46%) of investors associate annuities with creating a lifetime income stream.

“ It includes emails, social media posts, web content, blogs, podcasts, books, white papers and videos . It includes consistent social media engagement, search engine optimization and your firm’s website. The responses have been absolutely overwhelming… We’ve increased our social media and email marketing communication, and implemented video, because we want to make sure our clients know that we are here for them and not just talking about what’s going on in the markets.

“ It includes emails, social media posts, web content, blogs, podcasts, books, white papers and videos . It includes consistent social media engagement, search engine optimization and your firm’s website. What one or two marketing initiatives are you focused on for the remainder of 2022? Authentic content resonates. Boring marketing content is lazy. Why would you send prospects something they have seen a dozen times before or could Google on their own? As one leading financial advisor said, “That’s just lazy marketing.” Hearsay’s latest Financial Services Social Selling Content Study observed millions of social media messages from over 200,000 advisors. It may

MARKETING INSIGHT Can we agree that this has been a tough year for many affluent clients? They’ve had to deal with inflation, the price of gasoline, rising interest rates and shrinking nest eggs. At the same time, 4 million people are planning for retirement in the next 12 months. Did you know: 45% of middle-aged Americans would rather visit the dentist than a financial advisor? If they only knew you. If they only knew how you could help. Did you know: Advisors now have access to the 21st century digital tools and data to overcome clients’ negative attitudes about financial advisors? That basically doubles your convertible audience .

Get up to speed with Catalyst Office Hours Want to learn how you can incorporate authentic, personalized content into your marketing plan, without spending days creating and delivering it? Check out our latest Catalyst Office Hours . In October , Catalyst Office Hours focused on maxing out your Q4 results and building marketing momentum. In 60 minutes, we covered the proven digital strategies and campaigns top advisors are using to overcome stereotypes by demonstrating: Why they are different; and How they can help. Momentum Marketing : Fueled by Catalyst Effective marketing is no “one and done” lead you buy, and it doesn’t cost thousands of dollars. Catalyst is an award-winning digital growth platform that easily runs your personalized video campaigns, social media marketing and high converting lead funnels. In this way, it works with other lead programs like seminars and webinars to continue marketing to leads that don’t convert. Likewise, the leads, prospects and clients created by Catalyst can be invited to seminars and webinars. Momentum Marketing equates to word of mouth on steroids. Momentum Marketing builds on your greatest strength: Your expertise. But Momentum Marketing requires digital innovation. Momentum Marketing means Catalyst. Differentiate yourself. Prove your expertise. Show you understand them. Increase conversions. Ask your ADC for details. CLICK HERE >>

How do you show affluent consumers that:

• You care about them;

seem counter-intuitive, but wealth, life and annuity advisors have more success engaging new opportunities when they seek a balance between financial education-based content and lifestyle or affinity-based content. The education-based content is essential for building credibility but the lifestyle content drives the highest level of authenticity and engagement.

• You understand them; and

Nina O. Finanacial Advisor

• You have the expertise to solve their problems?

45% of middle-aged Americans would rather visit the dentist than a financial advisor. Authentic content marketing is the gateway Content marketing means giving away for free the best part of you: Your expertise. Authentic content marketing reflects who you are and what you believe. Authentic content is personalized by you for the reader. Remember, you don’t want prospects to confuse you with a dentist.

A video email is 4X more likely to result in a conversion.

QUICK TAKE Video marketing made easy Video marketing has become the most effective and popular form of digital media strategy. The reason is simple: A video email is 4X more likely to result in a conversion. In fact, according to a recent digital marketing study of 200+ advisors, advisors who signed 11+ more clients per year from digital marketing were most likely to use video. The No. 1 reason more advisors say they don’t use video marketing? Time. Here are two quick tips to simplify the process: 1). Use a video marketing tool built for sales. (We use Vidyard.) There’s a one-click button available through Google Chrome.

• Call the prospect to let them know you had them on your mind and wanted to reach out to follow up.

2). Use a digital growth platform with personalized video campaigns (like Catalyst). Choose a script from Catalyst or record your own.

• Again, hit record on your computer or use your smart phone.

• Upload the recording to a site like Vidyard once finished. • Then paste the link to the video into your Personalized Video campaign. • The campaign automatically creates the emails you can send, a landing page to host your video, an appointment request form and the confirmation email. • Once on the landing page, the prospect can complete a form to request more info.

• Simply click the button to start recording via your webcam.

• Record a quick message.

• Attach the video to the email you want to send. (Pro tip – keep text to a minimum and let the video deliver the message.) • When the prospect opens the video, you get an email notification.

Ask your ADC for details. CLICK HERE >>

THE RESEARCH IS IN… “GUARANTEED INCOME: A LICENSE TO SPEND” According to recent research by Prudential Financial’s Head of Retirement Research David Blanchett and Professor Michael Finke of the American College of Financial Services, a client’s ability to live a comfortable lifestyle in retirement isn’t based solely on how much savings they have in retirement. Instead, it’s where that money comes from that matters. Prior research shows that retirees don’t spend nearly as much money as they could from their investments, while retirees with some degree of annuitized wealth tend to spend more. Understandably, risk-averse retirees then to spend less due to longevity risk, that undeniable fear of outliving savings. Further, as Blanchett and Finke note, “Retirees may also exhibit behavioral preferences that make them far more comfortable spending from income than assets.” Retirees consistently spend about 75% of what they could spend from available assets. Retirees who rely on investments vs. annuities only spend 75% of available assets Based on findings from the 2021 Health and Retirement Study (HRS), Blanchett and Finke performed an analysis of the spending patterns of retirees between the ages of 65 and 75. Their goal was to determine how the composition of retirement assets (investments vs. annuitized wealth) relates to retirement spending. In line with past research, Blanchett and Finke found that retirees consistently spend “about 75% of what they could spend from available assets, and under-spending increases with age.” They also sought to find out: • How much more spending could be generated from a portfolio with a higher allocation to guaranteed income? • If retirees shift some of their non-annuitized wealth into annuities, how much more inclined would they be to spend?

“What if you could double the amount you can spend in retirement?”

One jaw-dropping revelation that Blanchett and Finke’s analyses uncovered (and something that will make your clients’ jaws drop, too) was that by shifting money from investments to annuitized wealth, “retirees would spend twice as much each year per dollar of savings.” By shifting money from investments to annuitized wealth, retirees would spend twice as much each year per dollar of savings. The opportunity for financial professionals and clients is clear As Blanchett and Finke concluded, advisors can significantly improve their clients’ post- retirement quality of life with strategies to increase annuitized wealth, including delayed Social Security claiming and moving assets to private income annuities. When you remove the fear of outliving savings, clients feel confident spending more (twice as much!) and enjoy a more comfortable retirement. That’s a win-win!

Take a deeper dive into the “Guaranteed Income: A License to Spend” CLICK HERE >>

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