It's a new year and similar to other professionals, financial planners and advisors are mapping out what strategies they should focus on to be more successful in 2017 on behalf of their clients. With the cost of living rising – and lifespans lengthening – there's another "life" that advisors appear to be honing in on: lifetime income.
According to a newly released report from the Insured Retirement Income, advisors are aiming to adopt a more "holistic" approach to retirement planning by looking for alternatives to traditional financial strategies, like pensions, which in both the public and private sectors are struggling. By keying in on ongoing retirement income generation and the strategies that foster this, the more likely it is that advisors will be able to deliver for their clientele.
Cathy Weatherford, IRI president and CEO, indicated there's no time like the present for lifetime income procurement, particularly those who are in or nearing retirement.
"We've talked for years and years about how the baby boomers need to save for retirement," Weatherford explained. They are there now. Some 24 million boomers are now 65 and older, and 33 million more will join them over the next seven years."
She added that financial professionals who successfully adopt a holistic method to lifetime income procurement will prove to be an invaluable asset for their clients.
"Leveraged Planning® is a life insurance approach to preparing for retirement."
Interest rates to influence level of growth
Playing a role in this regard are interest rates, which are rising, after the Federal Reserve decided to increase key interest rates by a quarter percent this past December – the first uptick in a year. IRI noted that the manner – and when – the market responds will all depend on whether interest rates continue to ratchet higher or if they normalize. If the former bears out, the impact won't be felt until much later this year.
Lifetime income strategies is a broad topic and there are several ways in which to achieve the end goal. One of the more successful types is Leveraged Planning®. Though traditionally used by business owners, high net worth individuals can thrive with this retirement strategy, funding both their estate and wealth planning needs through a life insurance approach.
Take a look at this five-minute video to see how it works and why it may be a better alternative to traditional split dollar plans, mutual funds or 401(k)s. Afterward, check out some of the main reasons why Leveraged Planning® Solutions is proving to be an increasingly popular retirement strategy.
