Let’s face it—the retirement planning world has changed. The old rules? They no longer apply.
Clients are living longer, spending more, and facing unpredictable markets. Things were different when pensions and social security covered the bulk of retirement expenses. But now things are different: market volatility can become a real problem with people trying to self-fund. Is the 4% rule really sustainable? And that 60/40 split well, is it even relevant anymore?
That’s why I’m hosting a free webinar on February 5th, 2025, called “50% Less Cost, 100% More Impact.” I’ll share a new way to think about retirement planning—one that reduces your clients’ required capital by up to 50% while delivering 100% income security.
If you’re an insurance agent, investment advisor, or wealth manager, this session is for you. Let’s dive into what you’ll learn and why it matters.
KEY POINTS
- Timing shapes retirements. Early market losses while taking withdrawals can drain portfolios fast, even with good averages. Timing is everything.
- Clients don’t see the risk. Sequence of Returns Risk is invisible to most. Your job? Make it clear and actionable.
- Master the solution. Learn how to protect clients near and at retirement, simplify the message, and grow your business.
WHY TRADITIONAL RETIREMENT STRATEGIES NO LONGER WORK
For decades, advisors like us have leaned on asset allocation as the cornerstone of retirement planning. We’ve built portfolios that balance growth and risk, diversified across stocks, bonds, and cash. Back then, it made sense.
But today, retirement is different. Defined benefit pensions are nearly extinct, leaving clients to fund their own retirements with 401(k)s, IRAs, and other defined contribution plans. This shift has placed the burden squarely on their shoulders—and ours.
Here’s the issue: Asset allocation works well for accumulation, but it falls short when clients start withdrawing income. Why? Because of something I call dollar-cost ravaging. When markets dip and clients withdraw money, they’re forced to sell more shares at lower prices. Unlike during the accumulation phase, there’s no time to recover those losses.
In many cases, retirees using asset allocation need to accumulate twice as much capital as necessary to protect against market volatility and ensure they don’t run out of money. But expecting clients to double their savings? That’s unrealistic for most.
During the webinar, I’ll show you a better way—a method we call Asset Optimization—that slashes capital requirements and enhances retirement security.
INTRODUCING ASSET OPTIMIZATION: A SMARTER, SAFER WAY TO RETIRE
Asset Optimization is about working smarter, not harder. Instead of relying solely on a market-driven strategy, it blends guaranteed income tools and Social Security optimization to create a foundation of secure cash flow.
Here’s how it works:
- Maximize Social Security: By delaying benefits until age 70, clients can increase their guaranteed income by a minimum 77%. This reduces the amount of capital they need to draw from their savings during retirement.
- Incorporate Guaranteed Income: Solutions like annuities with income riders provide predictable cash flow that lasts for life. This further reduces the need to over-save while protecting clients from market downturns.
- Free Up Capital for Growth and Legacy: With essential expenses covered by guaranteed income, the remaining assets can be invested for long-term growth or preserved for legacy goals.
The result? Clients need 40% to 50% less capital to retire comfortably, and they gain peace of mind knowing their income is secure. This approach isn’t just theoretical. It’s backed by real- world case studies and data that prove its effectiveness.
Want to see the numbers? Join us on February 5th, 2025, to learn how Asset Optimization can transform your practice.
FEES VS. COST: THE HIDDEN THREAT TO YOUR CLIENTS’ RETURNS
Let’s shift gears and talk about something that often flies under the radar: fees vs. cost.
We all know fees are a part of doing business. Whether it’s advisory fees, fund management expenses, or transaction costs, they add up. But here’s the thing—it’s not just about what clients pay in fees. It’s about what those fees cost them in lost returns.
Let’s break it down:
Imagine a client builds a traditional 60/40 portfolio to generate retirement income. Over time, most would agree that an average annual return of 6% is reasonable.
Now, consider the fees:
- 1.0% for advisory services
- 0.5% for asset management
At first glance, 1.5% in total fees doesn’t seem outrageous. But here’s the kicker: That 1.5% fee represents 25% of the client’s total expected return. In other words, they’re giving up a quarter of their potential earnings every year just to cover fees.
When you frame it this way, the real cost becomes clear. It’s not 1.5% of assets under management—it’s 25% of what they hope to earn. And that’s a steep price to pay.
By incorporating guaranteed income solutions, you can reduce reliance on high-cost, market-based strategies. This not only lowers overall fees but also protects clients from the cost of poor market performance.
During the webinar, I’ll walk you through strategies to manage fees and reduce costs without sacrificing service or returns.
CASE STUDY: HOW ONE COUPLE REDUCED THEIR CAPITAL REQUIREMENT BY 40%
Let’s look at a real-world example.
James and Erin, both 66, came to their advisor with $1 million in savings and a goal of generating $100,000 in annual income. Using a traditional asset allocation approach, they needed to accumulate $1.7 million to sustain their lifestyle for 30 years with a 95% probability of success.
By optimizing Social Security and incorporating a guaranteed income solution, James and Erin reduced their required capital to $1 million—a 40% reduction. Not only did they close the income gap, but they also freed up $300,000 for travel, investing, or legacy planning.
This is the power of Asset Optimization. It’s not about working longer or saving more. It’s about using smarter strategies to get better results.
Want to create success stories like this for your clients? Register for the webinar today.
WHY THIS MATTERS TO YOUR BUSINESS
This isn’t just about helping your clients—it’s about helping your practice thrive.
By adopting Asset Optimization, you can:
- Differentiate yourself in a crowded market: Offer something beyond the standard 60/40 portfolio and the 4% rule.
- Build stronger client relationships: When you help clients retire with confidence, they stick with you longer and refer others.
- Unlock new revenue opportunities: With less capital tied up in income generation, clients have more to invest in growth and legacy strategies.
FINAL THOUGHTS: DON’T MISS THIS OPPORTUNITY
The financial world has changed. Retirement planning needs to change with it. The old methods won’t cut it anymore—but that’s not a problem. It’s an opportunity.
If you’re ready to rethink retirement, reduce costs, and deliver better outcomes for your clients, I invite you to join me on February 5th, 2025, for “50% Less Cost, 100% More Impact.”
Your clients deserve the best. Let’s give it to them—together.
Register today, and I’ll see you there.
Andy Robertson,
Co-founder and Vice President, Training and Business Development
Founder & President of Capital Indemnity Group & Trusted Resource
As founder and President of Capital Indemnity Group and Trusted Resource, I work daily with some of the top retirement planning professionals around the country. Together, we introduce retiring Americans to the true power of one of the greatest retirement programs in existence today, Social Security. Understanding Social Security's unique ability to combat the erosive effects longevity, inflation, and taxes have on one's retirement capital is the key to building a fortified retirement income plan and minimizing the likelihood their clients will run out of money. With 92% of American households likely to fall short of their retirement savings needs, top retirement planners utilize our knowledge, training, and tools to embrace the complexity of Social Security planning and leverage its ability to salvage middle America's retirement dreams.
Or Call 781-919-2351
Maureen James, FLMI, AIRC, ACS
Owner/Principal at Summit Compliance Group, LLC
“Making regulatory compliance work for you, not against you.”
For more than thirty years, we have been making regulatory compliance a practical part of your business so you can focus on growth. We specialize in making complex insurance and investment regulations understandable and are committed to helping our clients identify and manage their unique compliance risks.
Neither DMI Marketing nor Summit Compliance Group, LLC provide legal advice. You should seek legal advice from your attorney. You are solely responsible for compliance with any federal, state, or local laws and regulations.
