There is listening, and then there is listening with empathy. I strive to build trust with prospects by listening to their stories and not by telling mine. 

Last year, a man walked into my office off the street to file a death claim for his mother’s life insurance policy. I told him a little bit about what I do and what my clients are like and asked him if he was working or retired. Then I remained silent and listened. Instead of waiting for your turn to say something, you have to know: What are they looking for? What do they need? What do they want, and how can I fulfill that? So that’s what I did with my prospective client. It’s more important to gather information about their goals and retirement plans, lifestyle and means. What are they concerned about most? Engage them in conversation, and then just let them speak.

He told me he was 62 years old, had just retired and was “scared to death about what is going on in the market.”

“What do you mean by that?” I asked.

“Well, I just lost $200,000,” he said.

We set up an appointment to meet the following week, and I asked him to bring me his IRA statement, which he had just rolled over from his former employer’s 401(k) (individual retirement accounts in the U.S.). He had $1.49 million in his retirement account. I had earned my RICP credentials during 2019 and having that skill set enabled me to elevate what started as simply processing a death benefit claim to crafting a retirement income plan. I explained to him that we’re going to move his money into a cash position to stop the bleeding, and then we’re going to take a little time to set up an excellent retirement income plan for him. 

After moving his money, I said to him, “Now you have to tell me what your goals are. Are you on Social Security? Do you have a life insurance policy?” I went through all the steps to see what he had. He said he was a smoker, had life insurance through his work, and didn’t think he needed his own separate coverage, as he had sizeable equity in the house he owned. So, I said, “Let’s talk about what you’re going to need for fixed expenses so we know how much income you can count on.” I asked him to bring his Social Security statement to our next visit, and I would do a break-even analysis to determine his best strategy for that piece of guaranteed income. At the next appointment, we discussed the results of the Social Security analysis, and since he didn’t think he would have longevity due to family health history and his smoking, we concluded that starting income sooner rather than later was appropriate. We both agreed that starting at age 63 in August 2022 was best.

Next, I put together an income strategy with a variable indexed annuity product and a variable indexed annuity income product. The income annuity has a three-year savings phase requirement, and I set it up so that he will take income during the first six years from the regular indexed product and then turn that one off and start drawing from the indexed variable income annuity. The income product has a three-year saving requirement, and by delaying he can get a higher withdrawal rate.

I also set aside $50,000 in a cash money market account in case he needed it during a down market. His wife is still working, so his Social Security, the first index withdrawals and her earnings will supply his early retirement. Down the road, his income annuity and Social Security will kick in, and I also set up two growth pieces in our managed money platform, so he has full access to this money if needed.

After I set up all these pieces, he was so happy that now he didn’t have to worry because he had certainty that his income would be suitable and appropriate in the future.