What Do I Say to My Clients?

 “Time to Re-Balance the Portfolio”

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You undoubtedly have clients who do not even realize that their portfolios are lopsided, and you can easily let them know what to do about it.

American investors who were investing over a decade ago were most likely using some form of the 60/40 allocation strategy—where 60% was invested in risk (securities), and 40% was in safety (bonds).

Well, if we just look at the run from New Year’s Eve 2009 to NYE 2019, a 60/40 portfolio would have grown to be about 80/20—due to the 10 year bull market.  That means there is WAY too much exposure to risk in equities. And that’s where you come in.

“Hey Bob, when was the last time you looked at your portfolio risk-balance ratio?”  Saying something as simple as this shines a light on the problem you need your clients to see…Their assets have grown and now there is too much money in equities.  But wait…there’s a problem…the bond market has died over the past decade.

With bonds being nearly worthless today, they are no longer a viable option for the “safe” portion of clients’ portfolios.  Index Annuities are the perfect solution—even more perfect than bonds ever were.  And with Index annuities projecting at or above 6% per year, they have slaughtered the performance of bonds over the last decade.  So, suggest that you run some numbers for your client, then give us a call.  We can put together new re-balanced portfolio projections that will make clients eager to move some of their risk exposed money…with your help, of course.

Silence Is Golden … Almost Literally

Here is the #1 mistake most advisers make when trying to present something to a potential client (like an annuity, IUL, financial asset, etc.)…

#1 Mistake: Talking at the wrong moments.

I have seen this happen hundreds of times over the years.  The potential client seems to be on the fence, and the agent starts getting nervous.  So, trying to help the situation get better, the adviser starts going back through the illustrations, or the brochure, or the financial needs analysis.  They do SOMETHING to try to help the client see that what they need to do is SIGN THE APPLICATION!!!!!

This never works.  Here’s what does work…
The seasoned successful agent knows that nervous clients do NOT need any additional pressure.  They need reassurances.

1. Remind them again of the things they said they needed or wanted…

a. Safety, growth, income, etc.

2. Ask them if there is something about the information you presented that doesn’t meet these needs or wants…

a. This reassures them that this sale will actually make them feel better

3. Then guide them to the decision they already know they want to make, by saying something like, “Well Karen…if this meets all of your wants and needs, maybe we should go ahead and move forward with it.”

4. Then…be completely quiet…for as long as it takes.

We can help with whatever your sales process needs.  We’ve helped hundreds, so we’re prepared.

~ Greg Skogsberg


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