Friday, November 28, 2014

The Performance Factor - Pathway to Freedom



The key performance indicators in my performance model that drive real business. This is a scientific methodology applied to your practice. Wayne built a 90 calendar for measuring performance based on his theory entitled "The 90 Day Wonder." This is part of Wayne's annual road map, which is like having a GPS for your practice.

The capability gap is the difference between where you are and where you could be if you became a focus profile specialist. You'll see how it is possible to accelerate your income by focusing on what you do best. You'll enjoy the business and you'll actually be able to take far more personal time off.

Syndicated financial columnist and talk show host Steve Savant interviews author, platform speaker, MDRT and Top of the Table producer Wayne Cotton on his career winning strategies that have achieved some of the most remarkable results in the industry.

Thursday, November 27, 2014

The Power of Program & Process - Pathway to Freedom



If you narrow your client profile, you naturally narrow you program. The power of a program will help you become masterful as you use the same concepts, stories, illustrations and planning tools.

Akin to the power of programming is the power of process. In this episode the key issue at hand is the method of marketing. There are basically three methods: desperation, attraction and precision. Wayne drills down on attraction marketing and why it evolved into precision marketing.

Syndicated financial columnist and talk show host Steve Savant interviews author, platform speaker, MDRT and Top of the Table producer Wayne Cotton on his career winning strategies that have achieved some of the most remarkable results in the industry.

Wednesday, November 26, 2014

The Power of Profile - Pathway to Freedom



The most monumental business decision that you can be made is knowing exactly the clientele you want to prospect. Wayne often reiterates how huge this business growth decision is for your practice or business.

In this episode Wayne centers on having an extreme focus on what you do best, i.e. knowing your area of speciality or expertise. Wayne defines and differentiates being a strategist and not an opportunist. Wayne highlights the process of duplication and how it can become an art form in your practice.

Wayne shares an incredible example of how 4% of effort generates 64% of results. His formula for success is called "Hyper Focus," the 80/20 ruled squared.

Syndicated financial columnist and talk show host Steve Savant interviews author, platform speaker, MDRT and Top of the Table producer Wayne Cotton on his career winning strategies that have achieved some of the most remarkable results in the industry.

Tuesday, November 25, 2014

The Clarity of Purpose - Pathway to Freedom



The first principle of growth is purpose, identifying the core values of why you do what you do and how you do it, i.e. knowing who you want to see. In this episode Wayne shares his own story of failure and his personal pathologies that him lead to his ground breaking revelation of his principles of growth.

After living as an extreme workaholic with eight stress related problems, Wayne was able to understand himself and be more productive in his practice that led to new levels of revenue. After surviving his own crash and burn experience, Wayne formed his own marketing mantra, "time off drives time on."

His color coded calendar is a popular graphic that has been adopted as a planning format for thousands of financial advisers and insurance professionals. Wayne is fond of saying, "Planning your time first is like saving money.

Syndicated financial columnist and talk show host Steve Savant interviews author, platform speaker, MDRT and Top of the Table producer Wayne Cotton on his career winning strategies that have achieved some of the most remarkable results in the industry. http://youtu.be/HbxrufQfbVE

Monday, November 24, 2014

The 4 Phases of Growth & Career Satisfaction - Pathway to Freedom



In the world according to Wayne, advisers work and live out of one of four locations: the house of pain, the house of same, the house of gain and the house of sane. Building out your home office can reveal much about your practice.

Wayne then describes the insidious impact of "Busyness," which is often mistaken for and used as a substitute for doing real business. In the episode. Wayne introduces the five principles of growth: The Power of Purpose, The Power of Profile, The Power of Program, The Power of Process, The Power of Performance.

Syndicated financial columnist and talk show host Steve Savant interviews author, platform speaker, MDRT and Top of the Table producer Wayne Cotton on his career winning strategies that have achieved some of the most remarkable results in the industry.

Friday, November 21, 2014

How cash value life insurance can enhance retirement income - Emerging Retirement Products

For many Americans retirement income is about cash flow. But in practical terms net after tax spendable money. So tax diversification is just as important as asset diversification. A TAMRA compliant cash value life insurance policy designed and managed to create the lowest cost of insurance can distribute tax free withdrawals of basis and policy loans of gain as long as the contract is kept in force for the life if the policy insured.

Many advisers use tax advantaged cash value life insurance as a strategy to delay and maximize Social Security to age 70 as well as mitigate taxation in tactical tax bracket management.

Syndicated financial columnist and talk show host Steve Savant interviews insurance product expert Mike McGlothlin on the impact of life insurance contracts.

Thursday, November 20, 2014

Why Wall Street Giant Goldman Sachs is in the indexed annuity market - Emerging Retirement Products

This new indexed annuity is used in an allocation option with no interest rate cap to limit performance. The GSMAC Index aims to deliver returns that maximize gains for a given level of volatility. Six diverse asset classes are rebalanced monthly, offering long-term potential for more consistent returns across different market cycles, both high and low. Still, index objectives may not be met. Diversification may not protect against market risk.

Indextra, a fixed indexed annuity issued by Integrity Life Insurance Company (Integrity), offers both growth potential and income guarantees for retirement planning. Allocate your account value among four interest crediting choices, including three indexed interest options.

Syndicated financial columnist and talk show host Steve Savant interviews annuity product expert Mike McGlothlin on the impact of qualified longevity annuity contracts.

Wednesday, November 19, 2014

How QLAC & MAGI correlate in retirement taxation - Emerging Retirement Products

Many consumers and some advisers don't realize that taxation for most tax payers has migrated from adjusted gross income to modified adjusted gross income. And to further complicate the understanding taxation, modified adjusted gross income calculations have multiple iterations depending upon income sources.

The tax correlation as it relates to MAGI and tax deferral can significantly impact retirement cash flow for retirees, so it matters to perform several models to deliver the best net income results.

Syndicated financial columnist and talk show host Steve Savant interviews annuity product expert Mike McGlothlin on the impact of qualified longevity annuity contracts.

Tuesday, November 18, 2014

How QLAC could bring relief from RMDs - Emerging Retirement Products

Required Minimum Distribution are mandatory at age 70 1/2 for all qualified plans. This new regulation allows a deferral of distributions up to 25% of qualified plan holdings not to exceed $125,000 per retiree to age 85. It's conceivable that affluent married couples could collectively defer $250,000.

But the only financial product that currently qualifies is a qualified longevity annuity contract.

Syndicated financial columnist and talk show host Steve Savant interviews annuity product expert Mike McGlothlin on the impact of qualified longevity annuity contracts.

Monday, November 17, 2014

Why QLACs could change retirement planning - Emerging Retirement Products



This is the most significant change in retirement regulation in recent times, perhaps since the launch of the Roth IRA. Each retiree can defer up to 25% of their qualified monies not to exceed $125,000 in a qualified longevity annuity contract.The deferral period can extend to age 85. This new regulation could dramatically change retirement planning and potentially save retirees tax dollars by reducing their require minimum distributions.

Syndicated financial columnist and talk show host Steve Savant interviews annuity product expert Mike McGlothlin on the impact of qualified longevity annuity contracts.

Friday, November 14, 2014

How to Bridge the Longevity Gap to the Next Generation - Long Term Care

This segment will demonstrate how to bridge the gap in client discussions about longevity planning and it will also show ways in which LTC planning can introduce new relationships to the advisor. We know that LTC planning makes good financial sense. We also know that there are obstacles which get in the way of advisors speaking to clients about LTC planning. Our recommendation is that, as an advisor, you first align yourself with a support system that can help you with ltc planning. One that is market intuitive, experienced, innovative and puts the best choice for your client at the top of the priority list. In seeking a supportive partnership, common objections that held the advisor back disappear. Objectives include:

  • Not enough time
  • It’s an uncomfortable conversation
  • Skeptical about the market
  • It’s too complicated

Identify the right clients: 45-75 net worth of $400k+, premium allowance of $3,000 to $5,000 per year. Clients with existing life/annuity products Start the conversation by asking clients if they’ve ever known someone who has had a care event and then ask them to tell you about it. Find the common threads that put you in the seat of uncovering planning opportunities. Tell your client how accountable you feel to help them plan for every aspect of their retirement…especially by protecting their retirement plan.

When you protect your client, you also protect their family…and your business. 2% of children keep their inheritance with their parent’s financial advisor. The millennial are the biggest generation to hit our country since the baby boomers. Every year for the next 50 years $1 trillion will pass from one generation to the next. How prepared will you be when your clients children call to ask you about Mom/Dad’s long term care plan? Filial laws are not to be ignored. In 28 states there is a legal precedent of financial responsibility for the expenses of a loved one. State agencies can seek collection of funds on Medicaid services. Document your LTC planning discussion with your clients. Have the client sign and acknowledge that you discussed options and either took next steps or decided to take their chances. Either way, the family members should know that you as the advisor took necessary steps to educate their loved one on LTC planning.

Syndicated financial columnist and talk show host Steve Savant interviews nationally recognized long term care author and expert Maria Sarci.

Thursday, November 13, 2014

Why Stand Alone LTC Policies Make Sense - Long Term Care

Stand Alone LTC policies are still a viable solution. The key is to educate clients on what to expect. Premiums will continue to go up. Talk about cost sharing the responsibility. Policies do not need to be structured to cover every aspect of care. There is great flexibility in plan design for this solution and it is still the only solution prepped to support multi life ltc in the employer sponsored space. What drive the premium up are long durations and expensive inflation options. Why start your ltc planning discussion with a $10,000 annual premium? Why not start with something that is meaningful yet within the client’s budget? Remember our earlier suggestions on identifying sources of premium?

Cost of care is expensive…much more expensive than paying for it out of pocket. A typical standalone LTC policy costs $2,500 a year. Average monthly cost of care in this country is $5,000. We can find some helpful ways to cover the cost of a long term care insurance policy. Unspent household income, HSA’s, RMD, Savings, Cash in low interest bearing accounts. These premiums may also be tax deductible and/or tax credits may apply.

Syndicated financial columnist and talk show host Steve Savant interviews nationally recognized long term care author and expert Maria Sarci.

Wednesday, November 12, 2014

How to Use Accelerated Benefit Riders - Long Term Care

Accelerated Benefit Rides are the newest entry to the LTC landscape. Unlike linked benefit solutions where there is often a second tank of gas for LTC access, these products are mainly designed to spend down the life insurance for a care event. These solutions were built for families with a need for legacy assets first but with the option to tap that benefit while living. Monthly benefits are often a percentage of the death benefit…i.e. 2%, 4%. There are essentially 2 types of riders, indemnity or reimbursement.

Chronic Illness vs. Long Term Care riders has a finite distinction. One supports non recoverable conditions only whereas the other supports recoverable OR non recoverable. Chronic illness riders will pay claim only when the condition is expected to last indefinitely. Often the premium for this rider is included in the base policy. A LTC certification is not often required. These riders can also not be positioned or sold as long term care riders. A true LTC rider does not require the condition to be permanent. Certification is required. LTC riders a little more flexible in their coverage opportunities. When clients ask me which one is better? I respond that it’s a personal preference! That’s what is so great about our current offerings. We need to ask the client what their key benefit drivers are so that we can point to a solution that fits best.

Syndicated financial columnist and talk show host Steve Savant interviews nationally recognized long term care author and expert Maria Sarci.

Tuesday, November 11, 2014

How to Leverage Linked Benefit Coverage - Long Term Care

Born from client request of a promised benefit when ltc planning. Covers the twin risk of living too long or dying too soon. Many of these policies are established on Universal or Whole life chassis. A 60 female who invests $100,000 can create a death benefit pool of $450,000. That provides a life insurance benefit of $150,000. It’s quite a ‘cost share’ approach. $The first monies that are spent for LTC is the death benefit. $100,000 of which is the clients own premium. The benefits are paid income tax free since it’s for LTC. Once the life insurance benefit is exhausted there is a second bucket of money that is available. It’s a right pocket/left pocket approach to solving the ltc need. The internal rate of return on these solutions is often in the double digits. Premiums can also be paid for with flexible payments. This same client can use $10,000 a year for 10 years and create almost identical benefits!

Annuities provide another chassis for linked benefit leverage. According to a 2009 Gallop survey of non-qualified annuity owners:

a. 83 % intend to use annuity as a financial resource to avoid being a financial burden on their children

b. 73% intend to use annuity as an emergency fund in the case of a catastrophic illness or for nursing home care

These numbers prove the opportunity that abounds for leveraging an existing annuity for LTC. We can show clients how they can use existing non-qualified annuities to purchase 3, 6, or 9 years of LTC coverage. Benefits are paid income tax free on both the spend down of the annuity or the continuation of benefits rider. Example: 70 year old male with a $100,000 non-qual annuity can purchase an LTC benefit of over $250k.

Syndicated financial columnist and talk show host Steve Savant interviews nationally recognized long term care author and expert Maria Sarci.

Monday, November 10, 2014

The State of Today’s LTC Market - Long Term Care

The Long Term Care market has evolved into an entire new environment dictated by longevity planning. For most Americans, some form of assisted living is inevitable. Long Term Care product lines offer different approaches to extended care coverage. Here's a quick look at the main categories.

  • Linked Benefit Life Hybrid: The leveraging power of existing assets is in the LTC benefit pool – LTC is the key reason for purchase; legacy assets are a secondary benefit
  • Linked Benefit Annuity Hybrid: Leveraging an annuity for multiplied value in a LTC benefit pool; if LTC is not needed the annuity benefit remains
  • Accelerated Benefit Life: Life insurance is the key driver in this concept – Access to the death benefit as a living benefit covers care expenses
  • Standalone LTC: Smaller annual premiums provide a greater benefit pool when care is needed

Syndicated financial columnist and talk show host Steve Savant interviews nationally recognized long term care author and expert Maria Sarci.

Friday, November 7, 2014

How the New Type of LTC Planning Works - Long Term Care

Consultative, holistic and dynamic. There is no one fits all mentality when approaching long term care insurance options. This isn’t your grandmother’s long term care. 30 years ago, we didn’t know what an assisted living facility was. 20 years ago, care in your own home was for the fortunate few. 10 years ago we didn’t dream that today’s market would look the way it does. Some may think I’m nuts for saying this but the options and our market has never looked so good! We have evolved; we have responded to market shift, there are more concepts for planning available today than ever before. So why would we hope to approach clients today as we did 10 years ago?! We need to dive deep, find out what matters to our clients and then pick one-maybe two ideas to discuss.

Four key questions to start every client discussion on care planning (each of these will be described with reasons behind and benefits of)

  • Have you known someone who had an event?
  • What are your key objectives in planning?
  • What funding sources are available?
  • What kind of medications are you taking?

Syndicated financial columnist and talk show host Steve Savant interviews nationally recognized long term care author and expert Maria Sarci.

Thursday, November 6, 2014

How The Economic Impact of a Care Event Can Effect the Ones You Love - Long Term Care

The question is simple: to self insure or purchase long term care coverage. The answer is found in the math and based on life expectancy. For most Americans, it just makes financial sense to own a long term care insurance policy that creates a pool of benefits for senior later living.

How to explain this to clients? Many of your clients will wonder if they can “self-insure” for a future LTC risk. This comparison of an LTC insurance purchase and the amount they would have to save to self-insure is a big eye opener. Clients need facts in order to make decisions. There is so much unknown about when someone might need care, how long, what type? We can’t see into the future but we can prepare for it. It doesn’t have to be a cover all approach. Tools such as these graphs won’t paint the whole picture and shouldn’t be positioned that way. What the client can expect is to know that LTC insurance options abound, we can’t pick one out of hat. There should be a fact finding segment to help advisors and clients understand what matters most to them about the economic…and emotional elements that come with care planning.

Syndicated financial columnist and talk show host Steve Savant interviews nationally recognized long term care author and expert Maria Sarci.

Wednesday, November 5, 2014

Why LTC Planning Makes Good Sense - Long Term Care

The emotion of care event speaks for itself. The financial impact should be explained. In detail. Over and over. Don’t stop until the client gets the picture. Cost of care in this country averages $80,000 for a Nursing home and $50,000 for part time coverage at home. Assisted Living falls somewhere in the middle. Twenty years from now, those costs will likely double. 20 years from now the last of the Baby Boomers will be entering their 70’s. LTC Planning shifts the risk off an individual and their family. Its better leverage on their money. Without shifting the risk, without planning, a person…by default is choosing to self-insure. When we can show a person how they can self-insure more effectively with insurance solutions, they can see the financial impact to their decision.

A typical standalone LTC policy costs $2,500 a year. Average monthly cost of care in this country is $5,000. So what’s more expensive? It makes good financial sense to shift the risk and do LTC planning. Concerned about having to lose in order to win? The market is ripe today with solutions that offer a promised benefit. Live to long, die too soon, maintain control over your premium. When clients have emergency money set aside for a retirement, which money can be multiplied in value…sometimes 2-4x for long term care? Why wouldn’t someone want to have their money work harder?

Syndicated financial columnist and talk show host Steve Savant interviews nationally recognized long term care author and expert Maria Sarci.

Tuesday, November 4, 2014

How to Build Confidence & Earn Trust - Long Term Care

LTC inquiries are heavily consumer driven. Clients are aware now more than ever of the impact to a care event and they are seeking ways to solve the problem on their own. It can be surprising for a financial advisor who has worked with a client for years to learn that they the client sought outside resources to protect their future. Clients are eager to learn about what their options are to protect their retirement future. Many have lived through a care event for a loved one or are providing care themselves! (Fox Business News) According to a new study conducted by Caring.com, nearly half of family caregivers spend more than $5,000 a year on expenses associated with providing care. Of those spending more than $5,000, 16% are seeing costs of as much as $9,999 while 11% are spending as high as $19,999 and 5% are absorbing out of pocket expenses of as much as $49,999.

Less than 10% of Americans over age 65 have a long term care insurance policy. Think about that number and all that we know about demographics, cost of care, impact to family and friends. There is no reason to hold back from an ltc planning discussion. Consumers need it; advisors should be socially and morally obligated to inform clients of their choices. The market today is ripe with solutions that can be tailor fit to any client. So what’s holding us back? Confidence and Trust need to be built on the side of the advisor so that he/she feels prepared to have the discussion with the client. How do we do that?

  • Work with LTC planning specialists
  • Take the time to know what’s available today
  • TALK TO YOUR CLIENTS
  • Document that you had the discussion…no matter what the client chooses

Syndicated financial columnist and talk show host Steve Savant interviews nationally recognized long term care author and expert Maria Sarci.

Monday, November 3, 2014

Better Living Through Better Planning - Long Term Care

Retirement is meant to reap the rewards of a lifetime of work, savings, contributions and dreaming of a golden time. On our journey to Retirement we think about living life on our terms. We plan ahead to ensure we have enough income, enough savings and enough time to do all the things we couldn’t do before retirement. Travel, new hobbies, home improvements, education, relaxation…these are some of the things that come to mind. We prepared long in advance to live retirement on our own terms. The idea of that happy retirement should include protecting it along the way. Protecting the very house that we spent years building. The idea of better living through better planning means taking into account the longevity factor. We know that life expectancies are improving. As recent as 2011 the average life expectancy was 80 years. There are 43 million Americans today over age 65. Currently, there are approximately 55,000 centenarians in the U.S., according to the U.S. Census Bureau. That number is projected to grow to 442,000 in 2050.

There is much planning to do in order to ensure a better, happier way to live in retirement. Preparing clients for independent living, no matter what the future holds, is something that every financial advisor, planner, retirement specialist should be doing. A recent survey from Age Wave and Merrill Lynch noted five key findings among over 3,000 adults

  • Health care expenses are the top financial concern for retirement among Americans age 50+, regardless of their wealth level
  • Only 15% of pre-retirees have tried estimating how much money they might need for health care and long-term care in retirement
  • Just 7% of those 55 to 64 feel very knowledgeable about Medicare options; a mere 19% of Medicare recipients do
  • 71% of couples age 50+ haven’t discussed how much they need to save to pay for health care during retirement
  • Health problems were the No. 1 reason people retired earlier than expected
  • Knowing what we know today about living longer and the concerns of retirees, we have an obligation in our industry to provide information to clients so they can make an informed decision to ensure better living in their retirement.

Syndicated financial columnist and talk show host Steve Savant interviews nationally recognized long term care author and expert Maria Sarci.

About Steve Savant

Steve Savant

As the National Marketing Spokesperson for Ash Brokerage, Steve Savant looks forward to meeting financial professionals in every way possible - in person or by video through conferences and social media.

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