Blogs

Month: January 2021

Taxes, Social Security and The Secure Act (and How to Plan for Them)

Taxes, Social Security and The Secure Act (and How to Plan for Them)

What will your clients be talking about in 2021? As an advisor, you can help focus those conversations on topics that will help your clients, whether they aware of them yet or not.

The past 90-120 days have brought a lot of changes. And those changes will provoke additional volatility throughout the next 90-120 days. It’s important to guide your clients past the short-term volatility to focus on their true long-term goals. After all, that’s what retirement income planning is. So, the question to consider is how these current changes will affect the future? Some of the changes are significant and need to be discussed with your clients as you work to become a High Performing Practice.

Acceleration of the Reduction in Social Security. By many accounts, the Social Security reduction expected to occur in 2034 could happen as soon as 2028. In other words, the pandemic, lower unemployment figures and loss of the payroll tax have basically accelerated by 50% the time when the Social Security board of trustees might have to enact a 24% reduction in Social Security. Your clients may be caught flat-footed when they open up their April statement and see that reduction in as few as seven years.

We have avenues to help mitigate that risk. Reach out to us and find out how.

The Secure Act. This was a monumental piece of legislation and retirement income planning. There is some bipartisan support for an updated Secure Act which would further push out the RMDS, possibly as far as age 85. This is where a QLAC could be a solution. It allows you to transfer in and push out RMDs to age 85. Looking over the last six years, I think the government has been giving us a clear indication that they need Americans to take more responsibility for their retirement income planning.

I encourage you to sit down before it’s too late and have that conversation with your clients. Whether your client is 10, 15 or 20 years away, you need to be making moves toward solid retirement income planning now.

Increased Taxes. Political statements aside, economically the stimulus money spent during the pandemic, including possible additional stimulus packages, must be accounted for at some point with an increase in revenue. In addition to creating a little bit of inflation, this also creates some higher interest rates. Your goal is to put your clients in a great position to take advantage of whatever economic conditions happen. And tax rates are likely to go up sometime in the next five to 10 years.

Ask your client if they believe tax rates will be higher when they retire than they are today. If the answer is yes, think about how to get your clients in a more tax-efficient spot. We have software to help you do that, but we also have products that work on a tax-deferred basis to help your clients grow their money faster without taxation. Since taxes reduce your AUM, these strategies help you as well.

For more information on how to strategically think about Social Security and tax deferral, and about the overall changes in retirement income planning, I encourage you to reach out to your local retirement income consultant by calling 1 (800) 589-3000.

Transformational Tactic

By utilizing available resources and focusing your client conversations, you can ensure your clients have a secure retirement plan, regardless of the changing economic landscape.

Recognize the opportunity to transform your business by taking our free course.

Posted by hpp
Creating a Strategy During a Pandemic

Creating a Strategy During a Pandemic

Welcome to 2021. We made it! And most of us are cautiously optimistic about what the new year will bring. But as we hope for things to get better, we’re still dealing with the spread of COVID, low-interest rates and a volatile political climate. If we learned anything last year, it’s that we need to act, not wait, to be successful. And the best way to start is to create a strategy.

So, if you’re ready to hit your prospecting goals and grow your practice, you need a strategy that keeps you front of mind with your clients and prospects.

Broadridge Financial Solutions, a global Fintech company out of New York, surveyed some top-performing advisors about how they plan to increase their return on investments in 2021. They found that advisors are shifting focus to digital marketing to be able to respond to the changing landscape of marketing. Their marketing strategies include allocating more resources to acquire new clients. In fact, more than two-thirds of the professionals surveyed said that they were going to increase their marketing spin. And they plan to increase their reliance on technology. They want to incorporate webinars, video content and digital advertising into their marketing mix.

So, how can you evolve your marketing strategy and stay in the game? Start by emulating the successes of these top advisors. Clients are responding and interacting with your brand across various channels and devices, including cell phones, email, websites and all kinds of different social media channels. And they have become accustomed to a personalized approach with a seamless transition between those channels. 

To achieve this, you must have a consistent message that is focused, thoughtful and intentional.

 And, if you really want to move the needle, your message needs to be where your clients are. From Facebook and LinkedIn to emails and recorded webinars, you can use the same channels your clients and prospects use to offer valuable, relevant content.

Think about what your ideal clients want, what they need, and what they expect from a quality adviser like you. Use that information to create a consistent message and then consider the channels that are most likely to deliver the best results. You should have the same message across all channels, and in our current environment of instant information, it needs to be executed seamlessly. Whether you’re using email, social media, your own website or all three, your clients should feel like you are having a continuous conversation with them regardless of which channel they are currently using.

So, set yourself up for success in 2021 with a focused and intentional marketing strategy incorporating digital marketing. If you’re not sure how to get started or need help crafting your message, give us a call. We’re more than happy to talk about our digital marketing opportunities to help you grow your business, attract quality prospects, and at the same time, remain relevant in the greatest shift from the workforce to retirement that we’ve ever seen in the United States.

Transformational Tactic

Your marketing strategy for 2021 should include consistent messaging, digital media, and, most important, information that your clients are seeking.

Recognize the opportunity to transform your business by taking our free course.

Posted by hpp