NAIFA's Advisor Today November/December 2020 Edition

ANNUAL MEETING & CELEBRATION OF MEMBERSHIP

November 17th, 2020

NAIFA’s Advisor Today Editor-in-Chief

Ayo Mseka amseka@naifa.org

703-770-8204

NAIFA

Kevin Mayeux, CAE CEO kmayeux@naifa.org

703-770-8101

Michael Gerber COO & General Counsel mgerber@naifa.org

703-770-8190

Diane Boyle SVP, Government Relations dboyle@naifa.org

703-770-8252

John Boyle, CAE VP, Professional Credentials jboyle@naifa.org

703-770-8267

Suzanne Carawan VP, Marketing & Communications scarawan@naifa.org

703-770-8402

Judi Carsrud

AVP, Government Relations

703-770-8155 jcarsrud@naifa.org

Jennifer Cassidy VP, Finance jcassidy@naifa.org

703-770-8125

Alaina Faiello VP, Professional Development afaiello@naifa.org

703-770-8225

Corey Mathews, CAE VP, Member & Chapter Services cmathews@naifa.org

703-770-8404

Phu Ngo VP, Technology pngo@naifa.org

703-770-8130

Brian Steiner VP, Business Development & Strategic Partnerships bsteiner@naifa.org

703-770-8220

Gary Sanders Counsel and VP, Government Relations gsanders@naifa.org

703-770-8192

Trustees

Mark Acre, LUTCF mark.acre@onesourcegroup.net

Wes Booker, LUTCF wes.booker@horacemann.com

Dennis Cuccinelli, LACP dennis@dcuccinelli.com

Connie Golleher, CLTC, LUTCF connie@gollehergroup.com

Stephen Good, LUTCF, CLTC, CFBS stephen.good@yahoo.com

Win Havir, CPCU, CLF, LUTCF, FSS, AIC, LACP Winona.Havir@horacemann.com

Delvin Joyce, CLU, CHFC delvin.joyce@prudential.com

Meghann McKenna, CLU, CHFC, CLTC meghann@mckenna-financial.com

Steven Saladino, LUTCF, LACP saladino@verizon.net

Beth Snyder-Jones, CIC beth.snyder-jones@stateauto.com

John Wheeler, Jr., CFP, CLU, ChFC, CRPC, LUTCF, LACP jwwcfp@aol.com

Brian Wilson brian.wilson@mutualofomaha.com

NAIFA SERVICE CORPORATION OFFICERS AND DIRECTORS

President

Kevin Mayeux, CAE Secretary

Cammie Scott, LUTCF, REBC, RHU, CLTC, ChHC, MSIE, SHRM-SCP, SPHR CK Harp & Associates Treasurer

Brock Jolly, CFP, CLU, ChFC, CLTC, CASL, RICP Veritas Financial LLC

Directors

David Beaty, IAR, ChFC, CLU, LUTCF, LACP Heartland Financial Services, Ltd.

Susan Wier, CFP, ChFC, RCP First American Trust

EDITORIAL ADVISORY COUNCIL

Laurie A. Adams, CFP, CLU, LACP, LUTCF Country Insurance & Financial Services

Brian Ashe, CLU

Brian Ashe and Associates, Ltd.

Frank Bearden, Ph.D., CLU, ChFC

Frank C. Bearden, Ph.D., Consulting

Lisa Horowitz, CLU, ChFC

LifeCycles

Ike Trotter, CLU, CASL, ChFC Ike Trotter Agency, LLC

NAIFA OFFICERS

President Cammie Scott, LUTCF, REBC, RHU, CLTC, ChHC, MSIE, SHRM-SCP, SPHR CK Harp & Associates cammiescott@ckharp.com

President-Elect

Thomas O. Michel, LACP Michel Financial Group tmichel@michelfinancial.com

Secretary Lawrence Holzberg, LUTCF, LACP Fortis Lux Financial lholzberg@fortislux.com

Treasurer

Brock Jolly, CFP, CLU, ChFC, CLTC, CASL, RICP Veritas Financial LLC bjolly@vfwealth.com

Immediate Past President Jill Judd, LUTCF, FSS State Farm Jill.judd.jyt0@statefarm.com

NAIFA CEO Kevin Mayeux, CAE kmayeux@naifa.org

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NAIFA’s Advisor Today (ISSN 1529-823X) is published bimonthly by the National Association of Insurance and Financial Advisors Service Corporation, 2901 Telestar Court, Falls Church, VA 22042-1205. Telephone: 703-770-8100. ©2020 National Association of Insurance and Financial Advisors Service Corporation. All rights reserved.

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Belonging to NAIFA Elevates Advisors

By Ayo Mseka

When we interviewed this year’s recipients of the Four Under Forty Awards, one message was clear: NAIFA has played a pivotal role in their rise to the top.

Thanks to their NAIFA membership, they said, they have access to a network of caring mentors, they are learning proven techniques for building profitable practices, and NAIFA’s powerful advocacy program is making sure they have a favorable business environment in which to conduct their business.

This sentiment is shared not only by NAIFA members under 40, but also by just about everyone who has chosen to become a NAIFA member. No matter how long they have been in the business, many believe that NAIFA membership is a cornerstone of their personal and professional success.

WHY I BELONG TO NAIFA

Here are some of the “reasons for belonging” a few members shared with us recently:

• “NAIFA’s advocacy program is second-to-none in the industry. It ensures a favorable business environment for all agents and advisors.”

• “ NAIFA provides me with a sense of belonging to a community of caring individuals. This allows me to combine my strengths with others, benefit from my peers and be part of something that is greater than myself.”

• “Joining NAIFA is a personal statement that I adhere to the highest Code of Ethics in all that I do.”

• “NAIFA’s credential and certification programs help differentiate me from other advisors and give me a competitive edge in today’s crowded market.” As a proud LACP holder recently shared with us: “The LACP helps me demonstrate to clients that I am committed to maintaining the highest level of standards for knowledgeable and ethical advice when discussing their life insurance and income needs.”

BENEFITS OF ADVISOR TODAY

NAIFA members also receive the magazine Advisor Today, which you are reading right now. One of the oldest publications in the industry, this award-winning magazine has consistently offered time-tested techniques advisors

need to keep on moving toward the practice of their dreams.

Take this issue, for example. In it, you will find tips for boosting your long-term-care production levels, the most effective methods of prospecting for prosperity, a preview of NAIFA’s Belong Event, and the business case for changing the way financial planning and retirement planning are done in this country.

And of course, as a NAIFA member, you also have access to information about a wide range of top-notch educational programs, including NAIFA’s Performance + Purpose Conference, NAIFA Live, the Advanced Practices Symposiums, and the Big Ideas Webinars.

NAIFA’s Centers—the Talent Development Center (tdc.naifa.org), the Business Performance Center (bpc. naifa.org) and the Limited and Extended Care Planning Center (lecp.naifa.org)—are also sources you should take advantage of as you seek to power your professional growth.

IT’S TIME TO RENEW

With all of these compelling benefits, it’s easy to see why NAIFA membership is so appealing to so many upwardly mobile advisors, and why so many of them count on it to help address the numerous challenges that are inherent in doing business in today’s challenging business environment.

So, if you have not yet renewed your membership, now is a good time to do so. Just visit www.naifa.org, sign up, and continue to get the great benefits that are helping you reach new heights of success.

And while you are it, encourage your co-workers, friends and colleagues who are not yet members to join NAIFA. Once they do, they will quickly discover what you already know: Belonging to NAIFA elevates advisors.

Success in Challenging Times

NAIFA’s accomplishments in these uncertain times demonstrate the power of pursuing shared interests and working toward a common goal.

By Cammie Scott, MSIE, ChHC, CLTC, LUTCF, REBC, RHU, SHRM-SCP, SPHR

This has been a year unlike any other in recent history as we struggled to deal with the numerous challenges and disruptions caused by COVID-19. But with your dedication and support, NAIFA was able to move past the challenges and executed many programs that moved us to a higher level of success.

Among our numerous accomplishments:

• We hosted several innovative programs designed to bring the industry together, bolster the power of belonging and inspire you to keep on moving toward the practice of your dreams. One of the programs worth mentioning is our NAIFA Nation Impact Week, which helped attendees break through the isolation and social distancing imposed by COVID-19 and provided a platform for them to come together as a community.

• We held a state-of-the-art Virtual Performance + Purpose conference, a three-day event that empowered you to reach for new heights of professional success.

• We positively influenced several regulations and pieces of legislation in our efforts to create a favorable business environment for you and the clients you serve. Our victories are largely due to the considerable influence we wield on the advocacy front—no organization is better suited than NAIFA to represent the financial services industry at the state, interstate and federal levels.

• We created the NAIFA 2025 Strategic Planning Committee, which has been charged with developing a five-year plan for the association. The 2025 plan will build on the success of the NAIFA 20/20 Strategic Plan, which was implemented in 2015. The 2025 strategic plan will continue NAIFA’s evolution into a nimble, fully modernized, professional association, laser-focused on providing a consistent, highquality membership experience to everyone who joins the association.

Thank you for the privilege of serving as your NAIFA President. It is an honor I will treasure forever.

• We announced a Future Leaders Program for students who are interested in careers in the financial services industry.

• We launched several professional-development programs to help you sharpen your skills and give you the expertise you need to succeed in today’s challenging business environment. Our legacy and credibility in the marketplace make us a valuable source of high-quality professionaldevelopment programs.

• We printed a special edition of Advisor Today magazine to celebrate our 130 th anniversary and to thank you—our leaders, volunteers, members, sponsors and partners—for your support of NAIFA throughout the years and for your commitment to ensuring that the association is around for another 130 years.

And on November 17, we will host our highly anticipated “Belong Event,” which is our way of thanking all of you, honoring our past presidents, recognizing our volunteer leaders and honoring our award recipients.

LOOKING AHEAD

As we look back at what we have managed to accomplish this year, we cannot help but feel a sense of pride. But even as we bask in NAIFA’s glory, we know we can’t afford to be complacent. After all, NAIFA has thrived for 130 years not because it has rested on its laurels, but because it has been able to call on all its members to work collaboratively to build a better NAIFA.

So, as we come to the end of 2020 and create plans for a new year, I am confident that we will continue on our

journey of working together to build a strong and vibrant NAIFA whose future will be as glorious as its past.

Thank you for the privilege of serving as your NAIFA President. It is an honor I will treasure forever.

Cammie Scott, MSIE, ChHC, CLTC, LUTCF, REBC, RHU, SHRMSCP, SPHR, is president of NAIFA and president of CK Harp and Associates in Springdale, Arkansas. Contact her at cammiescott@ckharp.com.

Everyone Deserves Financial Security

NAIFA is dedicated to promoting financial security and prosperity for every American family.

By Kevin Mayeux, CAE

Economic and financial disparities are fundamental to racial injustice issues that have taken center stage in our nation’s consciousness. As insurance and financial advisors and members of the largest and most influential association for American producers, NAIFA members have the talent, expertise and public trust to create positive change.

The net worth of a typical white family in the United States, according to the Brookings Institute, is nearly ten times that of a typical Black family. Similarly, a Pew Foundation analysis of U.S. Census data found the median income of Black American households is 61% of that of white households. And in times of economic hardship, Black families often bear a greater burden. As a result of the Great Recession, also according to Brookings, the median net worth of white families decreased by about 26%, while the median net worth of Black families saw a staggering 44% decline.

These disparities are part of an unfortunate historical legacy that have placed Black Americans and other racial minorities on an unequal footing for much of our nation’s history. NAIFA and our members are committed to addressing this issue and are playing an active role in advancing industry diversity, equity and inclusion initiatives.

FOUR STEPS FORWARD WITH THE AMERICAN COLLEGE

I agree with my friend, American College President and CEO George Nichols III, who said, “We must strive for common ground around this generational cause and work together to foster upward mobility and wealth creation for Black Americans.” NAIFA wholeheartedly supports The American College’s “Four Steps Forward” initiative to help combat racial inequality.

1. Develop financial literacy programs for Black women uniquely designed to address systemic wealth inequality and empower financial wellbeing.

2. Create a collective impact initiative that can be executed at the community level, backed by financial resources and toptier talent from national organizations.

3. Identify and develop the next generation of Black leaders in financial services firms through an executive leadership program that supports career growth and stronger communication and relationship skills.

4. Commit to purposeful professional development in the form of recruiting and retaining more Black people in financial services.

FINANCIAL SECURITY FOR ALL AMERICANS

NAIFA has long been dedicated to promoting financial security and prosperity for every American family. Our members serve the ever-changing face of Main Street USA. A client is a client, no matter the color of their skin or their ethnic background. Every American family benefits from increased financial literacy. They all need to prepare for, and mitigate, life’s inevitable financial risks. They deserve to plan for a secure retirement. They aspire to leave financial legacies for loved ones and future generations.

We also need an industry of professionals who reflect the individuals, families and business owners they serve. We need to recruit more people of color as agents and advisors and provide them with the tools, training, mentoring and strong association community they need to find success.

These are lofty goals, but they are necessary. NAIFA is working with The American College and our other association and industry partners to turn the words into results as we take the needed steps.

DIVERSITY, EQUITY AND INCLUSION

NAIFA’s Diversity, Equity and Inclusion Program and its task force have a mandate under our strategic plan to develop new ways through which we can help our members better serve all American individuals, families and businesses. NAIFA hosts an annual Diversity, Equity and Inclusion Symposium, which gathers thought leaders from around our industry to explore diversity, equity and inclusion solutions and inform critical decisionmakers. The most recent NAIFA Diversity, Equity and Inclusion Symposium in May drew more than 1,100 attendees.

NAIFA programming focused on diversity, equity and inclusion, exemplified by our recent webinar, “The Disparity and Opportunity,” featuring Christopher Gandy, and our

It is in the DNA of NAIFA members to see a wrong and make it right.

NAIFA members have the talent, expertise and public trust to create positive change

recent research report, “Serving the African American Community,” is providing important educational materials to spur thought and action in our industry. To recognize and inspire advancement in this important area, the annual NAIFA Diversity Champion Award honors an association member who recognizes the value of our differences and advocates for all members of our community.

Confronting the issues of diversity, equity and inclusion in our industry and society is something we can, and should, do. NAIFA members thrive on helping people and serving the best interests of their clients. If there is an underserved community that would benefit from insurance and financial products, services and guidance, it is in the DNA of NAIFA

members to reach out to that community, to see a wrong and make it right.

As the leading association for financial professionals in America, NAIFA is here to help you do just that.

Kevin Mayeux, CAE, is CEO of NAIFA. He may be reached at kmayeux@naifa.org

Simple Reminders in This Difficult Time

Maintain regular contact with clients and prospects, continue to charge your professional batteries, and stay motivated.

By Frank C. Bearden, Ph.D., CLU, ChFC

NAIFA has always been an organization that serves. During much of this year, you may have felt like someone in a rowboat on intermittent rough waters. At times, the roughness from COVID-19 seemed to disappear, only to return with little notice.

Nonetheless, NAIFA remains a service organization that serves to protect the financial interests of our clients by acting in their best interests (NAIFA Code of Ethics). In that sense, nothing has changed. You might find it interesting to discover the wide variety of clients our members serve. View the the list on financialsecurity.org and select “Who We Serve” for the full article.

We can be proud that NAIFA has been in the forefront of professional associations that seek diversity among our advisors. As a result, “Today there are more women, minorities and young people entering the insurance and financial planning profession than ever before.”

Those we serve include:

• The middle market whose household income ranges from $35,000 to $100,000. Middle-income Americans face challenges with being underinsured or underfunded for a comfortable retirement.

• The multi-cultural market includes Hispanic, African American, Indian, Chinese, Korean and Vietnamese communities. Members of these communities may need education on the need for financial protection for themselves and families.

• Women have a strong need for financial planning, as they as a group live longer than men but may earn less. Their careers often have been interrupted by child raising or caring for aging parents or grandchildren.

• The lesbian, gay, bisexual and transgender community (LGBT). About 3% of Americans identify themselves as lesbian, gay or bisexual and .3% are transgender.

• Young families include nuclear families of two parents and children, unmarried couples, single parents, and same-sex partners with adopted children. The increasing longevity of Americans presents estate planning and retirement challenges. (Much of the material in these five points above is from security.naifa.org/who-we-serve.)

How do we serve our clients? This is answered by reviewing the second obligation in the NAIFA Code of Ethics —“To work diligently to satisfy the needs of my client by acting in their best interest.”

their financial planning. We can display charts that convey descriptions of recommendations so that they can follow the need for, and benefits of, changes to their financial plans.

We should also maintain our activity in reaching out to prospective clients, in the aspiration of being of service to these persons. Phone calls and email messages are effective means of reaching out to referrals to schedule introductory meetings via Zoom. In our activities with clients and prospective clients, we should remember that an underlying ethical reason to stay active relates to doing all we can to continue to be effective in our profession.

REGULAR CONTACT WITH CLIENTS AND PROSPECTS

In times of uncertainty like these, it is important to maintain regular contact with our clients, being attentive to their financial needs and concerns. In a prior article, we discussed using resources such as Zoom to hold face-to-face video meetings with clients. In these meetings, we are able to convey our interest in our clients and review priorities for

A final note in staying effective involves taking time to charge our own professional batteries. This involves continued studying to add to, or maintain, our professional and educational credentials. It also involves maintaining our professional contacts, such as those in our local, state and national NAIFA organizations. Keeping our own motivation strong is a fundamental act of ethical service.

An underlying ethical reason to stay active relates to doing all we can to continue to be effective in our profession.

Frank C. Bearden, Ph.D., CLU, ChFC, is with Frank C. Bearden, LLC. Contact him at fbearden@outlook.com or at 210-724-1958.

A SPECIAL INVITATION TO NAIFA’S “BELONG” EVENT

NAIFA is inviting all members for an evening of camaraderie and celebration of all things NAIFA that will continue our legacy for another 130 years. The Belong event takes place Nov. 17 at 7:30 p.m. Eastern Standard Time.

The event will honor volunteer leaders, past and present. We will recognize our National Quality Award, Four Under 40, LUTCF and LACP recipients, and 2020 LILI graduates. The YAT Leader of the Year, Diversity Champion, and John Newton Russell Memorial award winners will be unveiled.

This event is the capstone of the year-long celebration of NAIFA’s 130th anniversary to thank all NAIFA members for their unwavering support over the years.

The NAIFA Belong Event has several purposes:

• To thank all NAIFA members for their unwavering support over the years.

• To serve as the association’s annual business meeting when the new board of trustees will be sworn into office.

• To thank and celebrate the more than 1,700 volunteer leaders and staff who power NAIFA’s 50 state and 35 local chapters.

• To pay tribute to our award recipients.

• To conclude the year-long celebration of NAIFA’s 130th anniversary.

EVENT HIGHLIGHTS

NAIFA National President, Cammie Scott, MSIE, ChHC, CLTC, LUCF, REBC, RHU, SHRM-SCP, SPHR, President of CK Harp and Associates in Springdale, Arkansas, will formally call the Annual Meeting to order and proceed with the election of five National Trustees and the National Secretary, Treasurer and President-Elect.

The Trustees who will be elected are:

• Wes Booker, LUTCF, Owner of the Wes Booker Agency in Maumelle, Arkansas (NAIFA member since 2004)

• Aprilyn Chavez Geissler, LACP, First Executive Vice President with Gateway Financial Advisors in Albuquerque, New Mexico (NAIFA member since 2005)

• Dennis Cuccinelli, LACP, Financial Representative, Certified Financial Services in Paramus, New Jersey (NAIFA member since 1986)

• Doug Massey, CLU, ChFC, FSS, Owner of Doug Massey Financial Services in San Angelo, Texas (NAIFA member since 1987)

• Brian Wilson, Sales Director with Mutual of Omaha Advisors in Lexington, Kentucky (NAIFA member since 2000)

The officers who will be elected are:

• Larry Holzberg, LACP, Director of Insurance and Advance Sales at Fortis Lux Financial in New York, (NAIFA member since 1990), will stand for election as President-Elect.

• Brock Jolly, CFP, CLU, ChFC, CLTC, CASL, CFBS, Founding Partner of Veritas Financial LLC/MassMutual Financial Group in McLean, Virginia, (NAIFA member since 2001), will stand for re-election as Treasurer.

• Bryon Holz, CLU, ChFC, LUTCF, CASL, LACP, Founder of Bryon Holz & Associates in Brandon, Florida, (NAIFA member since 1987), will stand for election as Secretary.

• Tom Michel, LACP, Managing Director of Michel Financial Group in Los Angeles (NAIFA member since 1986), will serve as the 2021 NAIFA President. And Cammie Scott, MSIE, ChHC, CLTC, LUCF, REBC, RHU, SHRM-SCP, SPHR, President of CK Harp & Associates in Springdale, Arkansas, (NAIFA member since 1998), will serve as Immediate Past President.

The elections will be followed by a recommitment of Trustees who have served one year of their two-year terms. These Trustees are:

• Mark Acre, LUTCF, President of OneSource Insurance Group in Nixa, Missouri (NAIFA member since 2009)

• Connie Golleher, CLTC, LACP, CEO, of The Golleher Group in McLean, Virginia (NAIFA member since 2000)

• Win Havir, CPCU, CLF, LUTCF, FSS, AIC, LACP, Executive Vice President Business Development with Educators Insurance Resources Services, Inc. and The Horace Mann Companies in St. Paul, Minnesota (NAIFA member since 1997)

• Steve Saladino, LACP, LUTCF, Managing Director with Principal Financial Group in Tampa, Florida (NAIFA member since 1991)

• John Wheeler, CFP, CLU, ChFC, CRPC, LACP, CLTC, Executive Senior Partner with MassMutual Texas Gulf Coast in Houston, Texas (NAIFA member since 1973)

MESSAGES FROM OUR LEADERS

The annual meeting component of Belong will include the farewell address by NAIFA President Cammie Scott, MSIE, ChHC, CLTC, LUTCF, REBC, RHU, SHRM-SCP, SPHR, as she assumes the role of Immediate Past President, and a welcome address by NAIFA’s Incoming National President, Tom Michel, LACP.

All volunteer leaders will also participate in a Recommitment Ceremony to honor their membership in the premier association for American advisors.

All volunteer leaders will participate in a Recommitment Ceremony to honor their membership in the premier association for American advisors.

AWARDS AND ACCOLADES

The annual meeting will be followed by a celebratory virtual black-tie gala affair. The celebration will be open to all NAIFA members via Zoom, and chapters located in states that allow for in-person gatherings may gather together to hold in-person watch parties to celebrate.

During the celebratory component, the Belong Event will feature the unveiling of three NAIFA-National achievement awards:

• The NAIFA Young Advisor Team (YAT) Leader of the Year Award

• The NAIFA Diversity Champion Award

• The John Newton Russell Memorial Award

The YAT and Diversity awards are peer-reviewed honors given to NAIFA members who have demonstrated outstanding service to the association. The John Newton Russell Memorial Award is the highest honor that can be bestowed upon an individual in the life insurance industry. It recognizes a lifetime of professional excellence, service to the industry and a commitment to ethical conduct.

TRIBUTES TO MEMBERS

The unveiling of these awards will be followed by Tributes to NAIFA Members, when we will celebrate the leadership and accomplishments of several high-profile members, including:

• NAIFA Past Presidents

• The NAIFA 2020 Chapter Leadership

• National Quality Award Winners

• Four Under Forty Award Recipients

NAIFA members who have differentiated themselves by participating in the following NAIFA professionaldevelopment opportunities will also be recognized:

• LACP certification

• LUTCF designation

• Leadership in Life Institute

The event will conclude with comments by NAIFA’s Incoming President, Tom Michel, LACP, who will also give a 130th Celebration Toast to NAIFA’s future.

RSVP today to the Belong Event at belong.naifa.org/theevent. This is one event you cannot afford to miss!

DID COVID-19 CREATE LONG-TERMCARE AWARENESS OR SEND US FURTHER INTO DENIAL?

Now is the time to have meaningful client conversations about long-term care.

By Carroll Golden, ChFC, LTCP, CASL, FLMI, CLTC, CLU

The other day, I was on the phone with a central scheduling employer to see if they had received a prescription authorizing an x-ray of my knee.

The employee, Olivia, apologized that her computer was running slowly. While we waited, I asked Olivia to give me her opinion on a book I am writing. The book deals with a simple three-step generational planning process. Family/ partners and friends participate in creating a personalized secure plan for extended or long-term-care needs.

Olivia told me that her grandmother had recently lost her husband and doesn’t know what to do about her needs. “She isn’t all that well and worries about money,” she said. She added that her grandmother is not cooperative since, “she is afraid of losing control.”

I asked what they were doing to resolve the situation. Her response: “I don’t think anything is happening, no one knows how to approach her without upsetting her, and then, they all get upset. I just hope something happens before something bad happens. Everyone is pretty stressed.”

I asked if anyone in the family works with an advisor. “Not really, I don’t think so. Not for this sort of thing.” Olivia asked if she could give my phone number to her grandmother. We then got back to the business at hand, with Olivia verifying that my doctor’s order was visible in their system and that I should head to the facility. Once I was COVID-19-style checked in, I sat alone, away from other patients and staff, waiting my turn.

My mind wandered. Why don’t people plan for the eventuality that at some point in their lives, they will likely

need help with some level of care? Waiting to find out if my knee would require surgery, I realized why it is stressful for anyone to picture themselves as anything but fit and healthy. Nowadays, almost everyone has a story about a family member or friend who needs care. Depending upon the immediacy, without a plan in place, stress levels quickly lead to panic, anger, confusion and several unwelcome consequences.

At the NAIFA Limited and Extended Care Planning Center, we paint the topic of extended and long-term care with a broad stroke. There are specialists who want to network with you.

STARTING THE CONVERSATION

As an advisor, why not start the conversation? The old excuse that your client may not be happy with the underwriting outcome or the pricing is no longer valid. Good fact-finding, along with information gathered from their story, leads to proper product selection.

Over the last decade, the market has increased the number of options for planning for extended and long-term care needs. Take a look at the hybrid, combo, and linked benefit life and annuity products, along with updated traditional long-term care products and a myriad of options for non-insurable clients.

Today’s specialists know how to start the conversation and involve the agent (and client) so that they understand which option is suitable for their client’s health, finance and life-stage. Many advisors don’t have a financially secure care plan in place for themselves. Give that specialist a test run. You will build trust in them, and they might help you expand your practice.

In today’s high-tech world, information is everywhere, but it doesn’t show up in the form of a plan. That’s opportunity knocking. At the NAIFA Limited and Extended Care Planning Center (lecp.naifa.org), we paint the topic of extended and long-term care with a broad stroke. There are specialists who want to network with you.

Here are some questions for you to address:

Is your client asking how and when to sign up for Social Security? Maybe they mentioned that they are not sure of when and how to deal with Medicare.

Do they qualify for veterans benefits?

Can they use a reverse mortgage as a retirement fund buffer or a long-term care funding vehicle?

How do you make sense of traditional vs. hybrid vs. life with riders? Which is the best one for which client?

Do clients have, or even know, which legal documents are needed? How do you safeguard that personal information?

As a P&C agent, do you need to offer Worksite solutions to your business clients so that they can see you more than a product distributor?

Are insurance carriers modifying their processes and products because of technology? How will they make you more comfortable with new platforms and apps?

As an advisor, can you find articles at the NAIFA LECP Center written by the sponsors to help you know their areas of expertise before you contact them?

If you want to do some self-studying leading to a certification and earn CE credits, is that available at a discount?

Is there a sponsor who is comfortable talking about technology? Will they agree to be a resource for you?

If you are thinking about exploring extended care needs as a possible specialty, can you find a mentor at the LECP Center?

There are so many stories about people who know people who need advice. Are you in personal or professional denial? Make sure you have developed your LECP network to enhance your professionalism and qualify as an outstanding advisor.

Carroll S. Golden, CLU, ChFC, LTCP, CASL, FLMI, CLTC, is the Executive Director of the NAIFA Limited and Extended Care Planning Center (LECP). Golden has an extensive background in business development, solutions selling, risk management and insurance distribution. Working with the LECP Founding Sponsors, Golden and NAIFA have put together the LECP Center to rethink extended and long-term care. Contact her at cgolden@naifa.org , or call her at 817-709-6859. You can also visit her at https://www.linkedin.com/ in/carrollgolden/.

NAIFA CREATES COMMITTEE TO CHART ASSOCIATION’S CONTINUED SUCCESS

A cross-section of NAIFA members and industry leaders will advance the association’s ongoing modernization and evolution.

By Mark Briscoe

NAIFA has created the NAIFA 2025 Strategic Planning Committee to develop a five-year plan for the association to build on the success of the NAIFA 20/20 Strategic Plan implemented in 2015. The new strategic plan will continue NAIFA’s evolution into a nimble, fully modernized professional association.

Under NAIFA 20/20, NAIFA became an efficient, streamlined association consisting of a national headquarters with state and territorial chapters and local chapters. The goal of NAIFA 20/20 and a continuing goal of

the NAIFA 2025 Strategic Plan are to provide a consistent, high-quality membership experience to everyone who joins the association.

The committee consists of a cross-section of NAIFA members and volunteer leaders, as well as thought leaders from NAIFA’s corporate and association partners. The group offers a broad range of knowledge and an impressive track record of success in the insurance and financial services industry and association management. Committee members also have a strong understanding of NAIFA members, their

practice specialties and their dedication to serving Main Street USA families and small businesses.

“NAIFA is poised to capitalize on the amazing transformation driven by the NAIFA 20/20 plan over the past two years, and we have assembled the perfect team of industry and association leaders and strategic thinkers to chart our course for the next five years,” said NAIFA CEO Kevin Mayeux, CAE. “NAIFA has grown into a nimble, forward-looking and fully modernized professional association. This puts us in the best position to serve the complex needs of our members, the greater community of agents and advisors, the insurance and financial services industry as a whole, and the diverse communities of Main Street USA consumers who trust NAIFA members to provide critical financial products, services and guidance.”

• Lawrence J. Holzberg, LUTCF, LACP; Director of Insurance and Advance Sales, Fortis Lux Financial (MassMutual), Melville, NY

• Ryan Jewell, Brokerage Manager, Guardian Life and Pacific Advisors, Seattle, WA

• Brock T. Jolly, CFP, CLU, ChFC, CLTC, CASL, RICP, Founding Partner, Veritas Financial (MassMutual), Tysons Corner, VA

• Jill M. Judd, LUTCF, FSS, Agent/Owner, State Farm Insurance Companies, Capitola, CA

• Dan Mangus, Vice President of Sales, Senior Marketing Specialists, Columbia, MO

• Corey G. Mathews, Vice President of Member and Chapter Services, NAIFA, Tallahassee, FL

• Kevin M. Mayeux, CAE, Chief Executive Officer, NAIFA, Falls Church, VA

• Meghann P. McKenna, CLU, ChFC, CLTC, Owner and Financial Advisor, McKenna Financial (New York Life), Bozeman, MT

• Thomas O. Michel, LACP, Managing Director, Michel Financial Group (Ohio National), Los Angeles, CA

• Susan K. Neely, CAE, President and Chief Executive Officer, American Council of Life Insurers, Washington, DC

THE NAIFA 2025 STRATEGIC PLANNING COMMITTEE

Members of the committee are:

• Alex R. Abbenante, CRPC, Regional Vice President, Equitable Advisors, Falls Church, VA

• Kristin M. Alfheim, CLTC, RICP, Managing Director, Retirement Dynamix LLC (Futurity First), Appleton, WI

• William T. “Tom” Ashley, AIP, AAI, AIAM, Chief Executive Officer, NAIFA-Florida, Tallahassee, FL

• Diane R. Boyle, Senior Vice President of Government Relations, NAIFA, Falls Church, VA

• Suzanne M. Carawan, Vice President of Marketing and Communications, NAIFA, Westerville, OH

• Nicholas M. Cecere, CLU, ChFC, Senior Vice President-USIS Distribution, Principal Financial Group, Des Moines, IA

• Gaffar Chowdhury, Managing Director, First Financial Group (Guardian Life ), Bethesda, MD

• Paul R. Dougherty, LUTCF, FSS, HIA, Agent/Owner, State Farm Insurance Companies, Hyattsville, MD

• Christopher L. Gandy, Founder and Chief Executive Officer, Midwest Legacy Group (OneAmerica), Lisle, IL

• Michael E. Gerber, Chief Operating Officer and General Counsel, NAIFA, Falls Church, VA

• Stephen L. Good, LUTCF, CLTC, CFBS, Director of Business Development, 1847 Financial South Florida (Penn Mutual), Boca Raton, FL

• Clint D. Hinderaker, CFS, Senior Regional Managing Director, Principal Financial Group, Coralville, IA

• Bryon A. Holz, CLU, ChFC, LUTCF, CASL, LACP, Independent Advisor, Bryon Holz & Associates (SagePoint Financial), Brandon, FL

• Danny O’Connell, MBA, LACP, Chief Executive Officer, Next Level Agency (Principal Financial Group), Addison, TX

• Charles M. Olson, CLU, ChFC, LACP, Chief Executive Officer, OCI Services, Elkhorn, NE

• Kathleen E. Owings, LACP, Principal, Westbilt Financial Group, Colorado Springs, CO

• John D. Richardson, RICP, LACP, Partner, Boundbrook Advisors (MassMutual), Franklin, TN

• Cammie K. Scott, MSIE, ChHC, CLTC, LUTCF, REBC, RHU, SHRM-SCP, SPHR, President, CK Harp & Associates, Springdale, AR

• Joseph Sparacio, CLU, LUTCF, CLF, Senior Vice President, MassMutual, Springfield, CT

• Faisa Stafford, LUTCF, SHRM-SCP, President and Chief Executive Officer, Life Happens, Arlington, VA

• Brian Steiner, Vice President of Business Development and Strategic Partnerships, NAIFA, Falls Church, VA

• Mimie Yoon-Lee, Assistant Vice President, Lincoln Financial Group, San Ramon, CA

The NAIFA 2025 Strategic Planning Committee convened virtually in September and will develop a draft strategic plan, which will be reviewed by the NAIFA Board of Trustees. Committee members are planning to present major elements of the plan to NAIFA members and other stakeholders and hope to finalize the plan by the end of this year.

Mark Briscoe is Senior Director, Strategic Communications, at NAIFA.

“We have assembled the perfect team of industry and association leaders and strategic thinkers to chart our course for the next five years.”

— Kevin Mayeux, CAE, NAIFA CEO

The Power of You. The Power of Us.

The Power of You becomes unstoppable when it’s combined with the power of NAIFA’s formidable advocacy program.

By Diane Boyle

Does the federal government sometimes remind you of a client who can’t quite figure out how to live within their means? It’s no secret that our country perpetually spends more than it brings in. Even before March of this year, the United States had an outstanding debt of around $23 trillion, a figure that has grown every year since 1957.

The COVID-19 pandemic is a generational catastrophe that threatened not just the bodily health but the financial health of every American and shook the foundations of our economy. Skyrocketing unemployment, salary and wage cuts, and increased business failures demanded government action.

In response, Democrats and Republicans in Congress, as well as the Trump administration, staked out elusive common ground and passed more than $3 trillion in relief and recovery legislation. Under the circumstances, it’s hard to argue this wasn’t the right thing for our leaders to do.

But even necessary massive spending packages do nothing to change the fact that there is a reckoning in our future. At some point, perhaps sooner than later, the bill will come due.

NAIFA is an advocacy organization, and we are the strongest when every member plays an advocacy role.

THE VITAL ROLE OF INSURANCE AND FINANCIAL SERVICES

The products and services insurance and financial professionals provide have always been part of the solution. They give Main Street American families and businesses the ability to take responsibility for their own financial security and provide themselves and their workers with opportunities to attain prosperity.

Between 2010 and 2017, Americans received more than $1.1 trillion in life insurance benefits, annuity contract payments and disability income payments, according to a study by the Brattle Group and presented by MetLife. This amount represents the equivalent of 20% of Social Security benefits paid over the same period. With policies in force providing $19.6 trillion worth of financial protection, equal to about 95% of the U.S. GDP, the insurance and financial services industry is an obvious driving force in the U.S. economy.

Federal lawmakers have traditionally recognized that life and annuity products are an important safety net and a source of security for tens of millions of American families. Thanks to the advocacy efforts of NAIFA and our industry, they have resisted urges to tax life insurance death benefits or to levy new taxes on the savings in life insurance and annuity contracts. They have also made policy decisions to encourage the access of consumers, employers and employees to retirement-savings products, workplace benefits, private health insurance and other products and services financial professionals offer.

But the ballooning federal deficit could make those urges to seek new sources of revenue stronger than ever. Our industry will not escape lawmakers’ scrutiny, especially by those newly elected to office. And the threat isn’t contained to the federal level. It extends down to the states as well. State efforts to increase revenue, impose restrictive fiduciary rules and create government-sponsored retirement programs, among other initiatives, will need to be addressed. Legislative and regulatory threats to your business and your clients’ wellbeing may now be greater than at any time in recent history.

THE POWER OF YOU

NAIFA is an advocacy organization, and we are strongest when every member takes an advocacy role. You can make a difference, whether by serving as a contact for state or federal lawmakers, participating in state or federal grassroots events, answering NAIFA’s Advocacy calls to action, or contributing as a NAIFA member to IFAPAC.

You make a difference because you hold influence with your elected officials. You can educate them on the importance of insurance and financial advisors and the products, services and guidance you provide to your Main Street USA clients. You have an authentic voice and compelling stories that can influence legislators in ways that professional lobbyists simply cannot. That’s the power of you.

Your power as an individual is that you represent your community and understand its needs when it comes to increasing financial literacy, preparing for life’s inevitable financial risks, planning for a secure retirement and setting up hard-working Americans to leave a financial legacy.

THE POWER OF US

The Power of You becomes an unstoppable force when it’s combined with the Power of Us. As NAIFA members, you are part of the most formidable grassroots army in our industry. You have the backing of NAIFA’s clout and prestige. We have members in all 435 congressional districts across the United States.

That is why, beyond Washington, D.C., we have a presence and influence in every state capital. When legislation or regulations arise that threaten your business and clients—or ones that help you do your job better—you can be sure that NAIFA is present and advocating on your behalf.

We are all in this together, and together, we can take on anything. That’s the power of you and the power of us.

Diane Boyle is Senior Vice President, NAIFA’s Government Relations. Contact her at dboyle@naifa.org

When legislation or regulations arise that threaten your business—or help you do your job better—rest assured that NAIFA is advocating on your behalf.

Becoming Your Best Self

Ask the people who matter the most to you what they need from you and make those requests your top priority.

By Danny O’Connell, MBA

As we all know, it takes a lot to be successful in the financial services industry—a lot of hours, a lot of attention, and a lot of care for our clients so that we can succeed together. This can be so challenging for most of us that achieving “work-life” balance is like performing in a Greek tragedy.

Or is it? I argue that work-life balance isn’t all that it is cracked up to be, and it is not what we truly want. When we first meet with prospects, we have to get to know them. Even our compliance departments tell us that we must fill out a document to find out as much as we can about them. We must find out how many kids they have, who their accountant is, what their income is, where they want to retire, what their hobbies are, what charities they care about, the status of their health and their family history.

We are, in essence, their CPA/lawyer/family counselor/ coach/financial advisor/doctor all rolled into one. We do all of this to get to know them very well so that we can do the best job for them.

We also sign up for every activity with our families, stretching our personal lives even thinner as we try to achieve work-life balance. But we are not. In reality, we are stacking more and more weight on ourselves until we fall down.

But why do we do this? Balance is not what we seek. As any high school psychology class will tell us, according to Maslow, once we fulfill our basic needs for food, water and safety, we turn to our psychological needs for friends, relationships and prestige.

Finally, and ultimately, we seek self-fulfillment needs, such as earning 13 ribbons at an insurance conference. (Yes, I am as guilty of this as anyone else.)

The question on your mind right now is probably: Danny, what does this have to do with simplifying my life, reducing stress and achieving this “balance” you say I don’t want?

I bring all of this up because we have to define what success means to us. We have to “fill out the fact-finders

of our own lives,” asking the tough questions of those who support us in our daily pursuit of “making it.” Those we work so hard for need to be heard beyond their basic physiological and safety needs. Once we stop and take inventory of their needs and expectations, then we can abandon this notion of seeking “balance” and truly work on the most meaningful things in our lives.

To achieve your full potential and live a life of fulfillment, you have to begin with the end in mind.

SEEKING CLARITY

How many of us wish we had more family time? When is the last time you asked your children how many family dinners they think you should have? When was the last time you wrote those items on the calendar because you know that every goal must be written down and shared? There must be accountability for it to be achieved.

When was the last time you asked your grandkids what they wanted to do with you this summer? When was the last time you asked your spouse what their goals and objectives are and which habits of yours bother or annoy them?

To truly reach your full potential and live a life of fulfillment, you have to borrow from Stephen Covey and

“begin with the end in mind.” You need to ask yourself where you want to be.

To be successful at this, you have to be proactive. It is up to you to get started. Put first things first. Understand the roles you play in your life and which ones are the most important to you—father, mother, grandparent, business owner, salesperson, leader, spouse and partner.

Seek first to understand. What do the people who rely on you need from you? This means that you have to go and ask them and be brave enough to face the answers. You have to write down and share with them what you are going to work on this quarter in trying to identify what it is they need from you.

Spoiler alert: You will NEVER achieve all of these goals and you will never get all of them done. But in pursuing them, you will find what you seek since you will now be working toward becoming your best self to those who matter the most to you.

Danny O’Connell, MBA, is the CEO of Next Level Insurance Agency, which focuses on employee benefits, life, disability, and retirement planning. O’Connell works jointly with agents all over the U.S. He is also a Life & Qualifying member of MDRT, with 7 Top of the Table Qualifications and 1 Court of the Table.

Presidential Election Results Will Impact Portfolio Decisions

This is according to a recent survey of investors.

By Ayo Mseka

Hartford Funds has released data revealing that investors plan to make investment changes based on the outcome of the 2020 presidential election.

The findings also suggest a generational disparity on presidential investment decisions and the financial professional/client relationship, as younger investors (ages 18-44) and older investors (ages 45 and up) hold mixed views on which outcome will be better for their portfolios and the importance of political alignment with their financial professionals.

ELECTION’S INFLUENCE ON MARKET PERFORMANCE

An overwhelming majority of investors believe that the presidential election will impact the stock market (93%) and their investing habits (84%) in one way or another.

Leading to the election, less than half of investors (45%) plan to make changes to their investments. Sixty-two percent of investors, however, plan to make investment changes within 12 months following the election, indicating

that the election result is likely to influence their investing decisions.

What’s more, investors who have worked or currently work with a financial professional are more likely to make investment changes following the election outcome, while those who never worked with a financial professional are less likely to make changes (53% and 79%, respectively).

Among investors who believe that presidents influence stock market performance, less than half (48%) believe presidents influence performance a lot, and 46% believe the influence is little. Investors who have worked or currently work with a financial professional are more likely to say that presidents influence performance by a lot than those who have never worked with one (51% and 37%, respectively).

In the context of investment performance, investors generally believe that a Republican president is better for their investments, compared to a Democrat (47% and 37%, respectively). This view, however, differs among generations. Younger generations believe a Democrat

win will be better for their investments (46%), while older generations lean towards a Republican victory (49%). Less than one fifth (16%) of investors believe that the election outcome will not affect their investments.

investments.

POLITICAL ALIGNMENT AND THE FINANCIAL PROFESSIONAL/CLIENT RELATIONSHIP

The data suggest that political views also play a key role in the financial professional/client relationship. Seventyfive percent of investors say they discuss politics with their financial professional, and more than half believe it is important that they align on political views (57%). In fact, 44% say they would switch financial professionals if they did not align on political views, indicating that political alignment is becoming an important factor when selecting and retaining a financial professional.

GENERATIONAL DIFFERENCES

The data also suggest generational differences on the importance of political alignment in the financial professional/client relationship. Younger generations almost unanimously (91%) say that aligning on political

views with their financial professional is very or somewhat important, compared to the older generations (48%).

Additionally, the majority of younger investors (83%) say that they discuss politics with their financial professional, and 68% of this same group say they would consider switching financial professionals if their political views do not align with those of their financial professional. However, less than half (38%) of older investors say that they discuss politics with their financial professional, and only 27% would consider switching if they did not align on political views.

“Now more than ever, investors—especially those of the younger generations—are looking to connect with their financial professionals for insights and expertise above and beyond financial guidance,” said John Diehl, Senior Vice President of Applied Insights at Hartford Funds. “As financial professionals begin to bring in the next generation of clients, they should be prepared to engage in conversations about topics that might not have historically fallen within their purview. These outside-of-the-box discussions, if done correctly, can uncover further details on what clients value, their investing habits and ultimately help foster a strong, effective relationship.”

The survey of 872 investors with at least $100,000 in investible assets was conducted online by Engine’s CARAVAN ® between Aug. 5 and Aug. 9, 2020.

Less than one fifth of investors believe that the election outcome will not affect their

Impact of COVID-19

While the pandemic changed the reality of many consumers, older people appear more resilient than their younger counterparts.

By Ayo Mseka

Despite COVID-19’s severe and disproportionate impact on the health of aging adults, older Americans reported they are coping far better than younger ones.

This is according to the Edward Jones and Age Wave study, “The Four Pillars of the New Retirement.” The 9,000-person, five-generation study in the U.S. and Canada revealed that in the U.S., 37% of Gen Z and 27% of millennials said they have suffered mental health declines since the pandemic began, while only 15% of baby boomers and 8% of silent generation respondents said the same.

“COVID-19’s impact forever changed the reality of many Americans, yet we’ve observed a resilience among U.S. retirees in contrast to younger generations,” said Ken Dychtwald, Ph.D., psychologist/gerontologist and Founder and CEO of Age Wave. “Older Americans tend to recognize the value of a long-term view, and so as they think about their lives, longevity and legacy, they’re able to pull from an array of experiences that help them weather current storms, feel gratitude about many aspects of their lives and still plan for the future.”

The research uncovered a new definition for retirement, as far more than simply the end of work. The majority of U.S. retirees (55%) defined retirement as a whole new chapter filled with new choices, freedoms and challenges, and they do so in a more holistic way across four important areas—the four pillars of health, family, purpose and finances.

COVID-19’S IMPACT ON FAMILY CLOSENESS AND FINANCES

COVID-19’s initial dramatic impact on the U.S. economy and personal financial situations may very well leave longlasting implications. Reflecting a great deal of generational generosity, 24 million Americans* have provided financial support to adult children due to COVID-19, and an overwhelming 71% of retirees said they would offer financial support to their family even if it could jeopardize their own financial future.

Despite COVID-19’s negative impact on finances, 67% of Americans said the pandemic has brought their families closer together. The research also revealed that

20 million Americans stopped making retirement savings contributions during the COVID-19 pandemic and only a quarter of working Americans were on track with their retirement savings prior to the pandemic. [i]

“We’ve certainly seen COVID-19’s disruptive force on finances, with the pandemic influencing retirement timing and financial confidence,” said Ken Cella, Edward Jones Client Services Group Principal. “However, this cloud has brought several silver linings in terms of family closeness and important discussions about planning earlier for retirement, saving more for emergencies and even talking through end-of-life plans and long-term care costs.”

RETIREMENT CHALLENGES

Further underscoring the fundamental importance of financial security, retirees are often met by new challenges as they enter retirement. Thirty-six percent of retirees said managing money in retirement is more confusing than saving for retirement, and they want help navigating how to manage their finances during their retirement years.

Fifty-two percent of retirees cited healthcare costs, including long-term care, as the most common financial worry. This concern was also echoed by pre-retirees as more than two-thirds (68%) of those who plan to retire in the next 10 years said they have no idea what their healthcare and long-term care costs will be in retirement.

SOCIAL RELATIONSHIPS AS PREDICTOR OF HEALTH AND PURPOSE

While loneliness is pervasive across all five generations, as people age, physical isolation becomes a greater health risk, as deadly as smoking a pack of cigarettes a day, [ii] and it is linked to increased risk for heart disease and dementia. [iii] While most retirees (76%) said they derive the greatest sense of purpose from social relationships, specifically time spent with loved ones, 72% noted that one of their biggest fears is becoming a burden on their families.

The study found that 89% of all Americans feel that there should be more ways for retirees to use their talents and knowledge for the benefit of their communities and society at large.

THE IDEAL ADVISOR

As Americans redefine retirement in a broader way across the four pillars of health, family, purpose and finances, the majority of U.S. respondents felt their ideal financial advisor is a guide who can understand them and help them achieve their goals.

In fact, 84% of those working with a financial advisor said that their financial advisor relationship gave them a greater sense of comfort regarding their finances during the pandemic.

“Beyond finances, we can help our clients envision and truly realize a holistic retirement, which, we know, includes decisions about their health, family and purpose,” Cella said. “Empathy and knowledge allow us to better serve our clients in a human-centered way and work together to achieve what’s most important to them and their families.”

The study was conducted by Edward Jones in partnership with Age Wave and The Harris Poll.

As part of the study, The Harris Poll conducted an online survey from May 21 through June 4, 2020, of more than 9,000 adults age 18+, in the US and Canada.

For more information, please visit www.EdwardJones. com/NewRetirement.

*Estimated projections to the US population are calculated based on the 2019 Census Current Population Survey.

ENDNOTES

[i] Federal Reserve, Report on the Economic Well-Being of U.S. Households in 2018 - May 2019

[ii] Holt-Lunstad J, Smith TB, Layton JB. Social relationships and mortality risk: a meta-analytic review. PLoS Med., July 2010

[iii] National Institute on Aging, “Social isolation, loneliness in older people pose health risks,” April 23, 2019.

The ideal advisor for many consumers is a guide who can understand them and help them achieve their goals.

Prospecting for Prosperity

Read this article to find out how to ask for treasured introductions in a way that lifts your spirit.

By Stephen Kagawa

Wouldn’t it be great to begin each day completely booked with ideal prospects—the type of people you enjoy working with most of all? Learning how to do so changed my entire life for the better.

When I started, I was convinced that it was all about getting 10 prospects with the hope that three of them might give me a chance to visit with them to land that one treasured client. So, I tried everything! Whatever the method I tried, however, I found that most of my success came from great referrals. But I was never excited to ask for them, and though my income was rising, that hadn’t yet risen exponentially either.

ASKING FOR TREASURED INTRODUCTIONS

I took pause and recognized that whenever I meet with people I enjoy, it’s always a great day. So, how could I meet with more of those to make all my days more meaningful? More importantly, how could I ask for these treasured introductions in a way that lifted my spirit?

I thought seriously about those clients in my life who I enjoyed being with the most, identified their shared traits, and painted a perfectly vivid picture of my favorite client. In doing so, I identified my ideal prospect.

Whatever the method, I found that most of my success came from great referrals.

I then asked for referrals to that ideal, but not from just anyone or at random times. I asked those who best exemplify the profile of my ideal prospect for introductions to those they know and respect who matched the profile of my ideal prospect. I did this routinely during moments of influential power:

“John, thank you for answering my cry for help. I know that you know what I do and how I do it. Still, I can’t expect you to be introducing me to people who are ripe for an insurance and investment advisor. What I really want is to meet people who care about those who depend on them and plan and execute their plans to meet the goals they find important to them. These

are people of integrity who do what they say they’re going to do in exactly the way they say they’re going to do it. You know, people like you. Who do you know and respect who’s like that?”

In that moment, John learns that I respect him, and he likes it. He naturally thinks of those who match the profile I requested among the people he respects. He introduces me to people of real value to him, and because of it, of real value to me.

Fortunately, an ideal moment of influential power to ask for these referrals in this manner always happens after we’ve implemented a client’s plan. The client says: “Thank you.”

And I say:

“You’re welcome. And you need to know how much I enjoy working with people like you—people who care about those who depend upon them, who plan and execute to plan. People of integrity who do what they say they’re going to do in exactly the way they say they’re going to do it. You know, people like you. Who do you know and respect who is of that nature?”

Fascinatingly, the best result comes during the initial meeting with a newly introduced prospect from my appreciative client.

I say to her: “Jane, I’ve been so eager to meet you.” I remind her about how we met: Her friend, my client, John, told me about someone he respects and holds in the highest esteem. I add: “John was referring to you, Jane .”

Using this approach, everyone wins—my client, John, for making my prospect Jane feel special and respected, me, for being introduced to an ideal prospect, Jane, and Jane, by getting me to help her with her plans.

Yes. You can change the dynamic of your practice through this magical way of prospecting and enjoy a life of true prosperity, a life that is not only one of increasing financial wealth, but of increasing spiritual wealth and happiness, too.

Stephen Kagawa is CEO of The Pacific Bridge Companies. He is focused on global financial navigation and helping first-generation communities migrating from Asia to successfully acclimate financially to their new-found American homes. He is a life and qualifying MDRT member with 20 Court of the Table and 18 Top of the Table qualifications, a NAIFA member since 1986 and an IFAPAC 4 Star General.

Using Disability Insurance to Grow Your Practice

Top DI producers are using blogs, search engine optimization and social media to stay in front of their target audience.

By Thomas Wong, RHU

The COVID-19 pandemic has touched all of us in one way or another. Businesses have been impacted, and many people are suffering from lost wages or reduction in earnings. Others have died prematurely or gotten sick and recovered. But through all of this, many producers have grown their practices.

For the last several months, the one question I have received frequently from producers is: “How are sales?” While 2020 has been a tough year for many, quite a few producers are also having a great year.

BEST PRACTICES FOR GROWING YOUR PRACTICE

Here are some best practices I have noticed among those advisors who have been having a strong year:

Touch base with existing clients and prospects during the pandemic. Clients and prospects will remember you for checking in on them. As Greg Balogh, a Guardian Life agent in Hartford, Connecticut, notes: “More than ever, it

is important to reach out to existing clients just to check in and be a sounding board. It has been inspiring to me to see how clients and friends have shared the struggles and opportunities they have had. For many, COVID-19 has created a sense of urgency to address planning needs that seem to always be put on the back burner. This has created a tremendous opportunity to assist clients with their current and future needs.”

Start introducing disability income (DI) insurance to your clients Most agents whom I come across with do very little in this area, and many still have a linear mindset. They tend to favor one product such as life insurance or investments. Once the product is implemented, they look for a new client who can benefit from the same product line.

How many of us have ever bought protection agreements on electronics, autos, appliances or sporting equipment? The reason we said yes to these agreements is because someone asked us to buy them.

We need to ask our prospects and clients to buy DI insurance and apply this simple procedure to our practices. If we don’t, we will miss an opportunity to help clients protect their greatest asset, which is their ability to earn an income. Your health is your wealth.

Selling additional lines of business to existing clients can increase your profitability exponentially. Most producers underestimate the potential earnings derived from selling DI insurance. They tend to look only at firstyear commissions and don’t realize that renewals can be quite substantial and persistent. So, examine your book of business to see if you have the right product mix for your clients (including both personal and business product opportunities).

Lastly, remember that many buyers today prefer to meet with agents virtually, purchase products online and want the process of acquiring products to be simple and easy. Embrace and utilize technology; you may be rewarded with enhanced productivity, greater efficiency and more profit.

Many of the producers I know who are thriving during this period utilize blogs, search engine optimization, social media and other techniques to stay in front of their target audience. Others have strategic alliances that refer new business on a regular basis to them. The situation has gone from us “hunting” for new clients to us being found. This is the new “normal” of doing business.

In summary, Americans are worried about having enough money to pay their bills. We know we will get through this; hopefully, it will come sooner rather than later. But the mental malaise can take a toll.

Introduce and implement individual DI insurance to your clients. The financial and emotional impact of a permanent disability will be worse than what is happening today if your client is given a life sentence of no income due to a sickness or an injury.

Stay safe and healthy, and continue to make an impact on your clients’ lives.

Thomas Wong, RHU, works closely with Guardian Life’s distribution system to promote the sale of individual and business DI products. Prior to this, he was the Marketing Services Specialist for five years. You can contact him at 646-235-8439 or at thomas_c_wong@glic.com.

Embrace and utilize technology; you may be rewarded with enhanced productivity, greater efficiency, and more profit.

The Year of Living Permanently

2020 has provided some of the best examples of the power of permanent life insurance. Here are a few of these examples.

By David Szeremet, JD, CLU, ChFC

Want to know the verdict on 2020? Check your social media accounts. I am willing to bet that if given the choice, the vast majority of your family, friends, contacts and followers would prefer to delete this year. A word to the wise: Keep 2020 fresh in your memory.

2020 has provided some of the best examples of the power of permanent life insurance I have witnessed in 20 years as an advanced planning attorney.

PANDEMIC FINANCIAL SAFETY NET

Clients who planned ahead were able to access life insurance cash value on a moment’s notice without current taxation and without navigating the COVID-19 acronym obstacle course (CARES, NOL, SSA, PPP, EIDL, SBA and on and on). Whether it was a furloughed corporate attorney taking a loan against their policy to support their family or the owner of a website-development firm using cash value to keep their (virtual) doors open, life insurance cash value shined. We often position life insurance cash value as a financial safety net. 2020 has reminded us why.

COVID-19 SPEND-DOWN PREVENTION FUND

The CARES Act created a partial lifeline to retirement savers. Under the Act in 2020, for individuals adversely impacted by COVID-19, up to $100,000 can be accessed from a retirement plan by way of a loan and/or distribution, penalty-free. However, the Act did not waive applicable taxes, and the fact remains that it is generally a bad idea to spend down (even partially) savings if those funds are earmarked for retirement.

Life insurance cash value accessed tax and penalty-free is an alternative to spending down a 401k or an IRA. It also serves as a reminder of the power of having multiple savings buckets from which to pull.

LIFE INSURANCE AS A STRETCH IRA ALTERNATIVE

January 1 ushered in one of the most significant retirement and estate-planning changes of the last generation. Under the SECURE Act, the Stretch IRA “died.” For account owner deaths in 2020 and thereafter, IRA and defined

contribution plan beneficiaries generally may no longer stretch out distributions over their lifetime. With some limited exceptions (spouses, disabled beneficiaries, etc.), an inherited retirement account must be distributed by the end of the tenth year following the account owner’s death.

For clients interested in passing a retirement account as a legacy, the ten-year force-out rule may erode the legacy. It potentially accelerates income to heirs and runs the risk of pushing them into higher income tax brackets (a tax “double whammy”).

Elections come and go, but life insurance cash value never goes out of style.

Life insurance may be an excellent alternative to the Stretch IRA. Not only is the death benefit generally incometax-free, but it is not subject to the ten-year force-out rule. I have consulted on multiple cases where clients are pivoting from their IRA to a trust-owned (or trust-payable) life insurance policy, where the trustee is either authorized (or instructed) to stretch the death benefit over the trust beneficiaries’ lifetimes. And from a practical, trustadministration perspective, it is a lot more simplified than stretching an IRA.

This strategy is appropriate for clients who can afford to reposition the IRA and understand the income-tax ramifications of distributing the account during their lifetime. It is also a good fit for heirs who are in a higher income tax bracket relative to the account owner.

ELECTION INSURANCE

As if we didn’t need more drama, 2020 is a presidential election year. Life insurance cash value helps smooth some of the volatility that can result from an election cycle. Having a safe, non-correlated protection and savings asset may help clients sleep better at night, regardless of who wins. Elections come and go, but life insurance cash value never goes out of style. Election cycles also remind us of a

fundamental principle of life insurance planning: Never bet your insurability on politics.

PROTECTION FROM CREDITORS

With economic, political and societal instability dominating headlines, the search for safety and protection took center stage. This year, I have fielded more calls concerning life insurance and creditor protection than in any other year of my career. Some days, it seems like protection from creditors is on everyone’s mind. Laws vary by state, but every state offers some level of protection from creditors. It is generally the strongest for personally owned and trustowned life insurance. Do yourself a favor and find out how your state laws stack up.

Truth be told, every year is a year for permanent life insurance. 2020 just happens to have a slew of textbookplanning examples we can carry forward in our practices for the rest of our careers. I’m sure you have your own examples, but feel free to “steal” mine.

Cheers to a better 2021! But remember to keep one eye on the future and one eye on the past.

David Szeremet, JD, CLU, ChFC, is Vice President, Advanced Planning, at Ohio National Financial Services. Szeremet is responsible for the advanced planning team that provides general education and marketing support, including estate planning, executive benefits, business insurance and life insurance planning. He can be reached at david_szeremet@ohionational.com, linkedin.com/in/davidszeremet or 513.794.6389.

Life insurance and disability income insurance products issued by The Ohio National Life Insurance Company and Ohio National Life Assurance Corporation. Issuers not licensed to conduct business in New York. Life insurance policies have exclusions, limitations, reductions of benefits, and terms under which the policies may be continued in force or discontinued. Contact the issuing company for additional information.

Life Insurance Is About Life!

In addition to its death benefit, life insurance can provide flexibility to cover unexpected or expected expenses now and in the future.

By Meg Muldoon, J.D., LL.M.

When people think about life insurance, the death benefit is usually the first thing that comes to mind. Logically, that’s because the primary purpose of life insurance is the protection the death benefit provides to loved ones and assets in case the unexpected happens.

Personally, I’ve seen the importance of life insurance first-hand. My father passed away when I was in my twenties, leaving me the majority of his life insurance. I used some of the death benefit to pay off student loans, purchase a home and save for my future.

Life insurance is about caring for loved ones, but it can also help care for your client. Permanent life insurance isn’t just about the death benefit. It also builds cash value that can be accessed at any time, for any purpose. These “living benefits” can be used to address both life’s challenges and milestones.

The year 2020 has certainly presented some challenges. Owning a permanent life insurance policy can provide an additional source of funds for the unexpected. For example, policy values can be accessed to meet expenses and supplement income while caring for a family member. A permanent life insurance policy may also offer other features that can provide clients and their families with a financial safety net if the insured becomes chronically ill.

The cash value of permanent life insurance can also help celebrate lifetime milestones such as helping to fund a college education, covering wedding expenses, supplementing retirement income and meeting other personal needs.

FUNDING COLLEGE

Permanent life insurance is a compelling alternative to other college savings vehicles. It offers a good return and

it’s stable. There’s liquidity, because it doesn’t have to be used for a specific need, and loans from its cash value are generally tax-free.

Clients also have the flexibility to use the cash value for whatever they want. If their child ends up getting a fullride scholarship to college, money isn’t trapped in a college savings plan that can only be used for certain expenses associated with education.

The cost of a permanent life insurance policy on a child is relatively inexpensive because the mortality is low. Plus, if the money isn’t needed for college, your client will have something they can gift to their child later, as a graduation present, for example. Other significant benefits include locking in their insurability when they are young and healthy and yielding more time for the policy to accumulate cash value.

MAKING A LASTING GIFT

Clients can help their children or grandchildren get off to a good financial start by giving them the gift of a permanent life insurance policy. By funding the policy’s initial years, your clients can help the next generation secure a lifetime of protection and a financial resource that can help to fuel their dreams. Major life milestones, such as graduations, new marriages and starting a family, offer special giving opportunities. But there is never a wrong time for a client to consider giving the gift of permanent life insurance.

With the uncertainty of what lies ahead, permanent life insurance not only offers the death benefit to protect loved ones but can also provide flexibility to cover unexpected (or expected) expenses now and in the future.

FUNDING RETIREMENT

It’s impossible to predict the market conditions a client may face in retirement, so it’s important to diversify retirement income sources. Permanent life insurance can provide supplemental income that isn’t tied to the market, making it a great addition to a comprehensive financial strategy.

If there’s a downturn in the market, clients can take loans or withdrawals from their permanent life insurance policy to mitigate risks until the market hopefully recovers. By diversifying retirement funding sources, clients can protect themselves and their family from unexpected turns.

LEAVING A LEGACY

Some clients may be concerned that their children and grandchildren will not be better off financially than they are and want to find a way to help increase the financial security of future generations.

If properly structured, permanent life insurance can positively meet your client’s planning goals for multiple generations. For example, I have permanent life insurance in an irrevocable trust for the benefit of my children. The trustee can access the policy values during my lifetime for my children’s needs. Eventually (hopefully many years from now), the death benefit will be able to provide them with a lasting legacy.

(This article is for informational purposes only and should not be considered as specific financial, legal or tax advice. Depending on your individual circumstances, the strategies discussed in this presentation may not be appropriate for your client’s situation. The information in this material is not intended as tax or legal advice. Always consult your legal or tax professionals for specific information regarding your individual situation.)

(Life insurance policies contain exclusions, limitations, reductions of benefits and terms for keeping them in force. Accessing cash values may result in surrender fees and charges, may require additional premium payments to maintain coverage, and will reduce the death benefit and policy values. Loans are income tax free as long as policy is not a “modified endowment contract” (MEC) and policy must not be surrendered, lapsed, or otherwise terminated during the lifetime of the insured. Policy must not be a modified endowment contract (MEC) and withdrawals must not exceed cost basis. Partial withdrawals during the first 15 policy years are subject to additional rules and may be taxable. Depending upon the amount of the premium (gift), gift taxes may be payable. The amount and structure allowed for gifting life insurance will vary based upon individual circumstances and is subject to underwriting.)

Major life milestones, such as graduations, new marriages and starting a family, offer special giving opportunities.

Meg Muldoon, J.D., LL.M., is Assistant Vice President, Advanced Markets, The Penn Mutual Life Insurance Company.

Are You Guilty of Malpractice in Your Work?

By Harlan Accola

Here are some of the words the dictionary uses to define malpractice: improper, illegal, or negligent professional activity or treatment, especially by a medical practitioner.

And here are some of the synonyms for malpractice: wrongdoing · dereliction of duty. professional misconduct · breach of ethics · unprofessional behavior · unprofessionalism · unethical behavior · negligence · carelessness · incompetence.

Most of us would never be associated with any of these actions, but what about negligence and dereliction of duty?

The question that serves as the title of this article revolves on an article that Jamie Hopkins wrote for Investment News in 2018. Hopkins writes that not doing something can be as harmful as doing something wrong. (https://www.investmentnews.com/financial-advisersshould-avoid-error-by-omission-and-consider-reversemortgages-73214)

It is possible to commit malpractice because of an error of omission—not doing something that could have been done to help a client or to make sure a client avoids a negative outcome.

In the article, Hopkins clearly lays out the fact that it is dangerous to avoid using reverse mortgages and home equity in planning for retirement. Here is the quote from his article:

“In my opinion, not including home equity and reverse mortgages in the financial planning process is the largest failure of the financial services profession at this time.”

No one wants to be part of a failure, but many of us in the mortgage industry and the financial planning industry are part of that failure because we don’t talk to each other and work together in our planning. That is the central issue behind the decision for Fairway Independent Mortgage Corp’s 8,000 employees and NAIFA’s 25,000 members to work together.

We want to change the way retirement is done in this country. We believe it will be accomplished by our two industries talking to each other as we touch our borrowers and our clients together with cutting-edge research and education that will create new retirement strategies.

The home office of Fairway Reverse Mortgage is in Marshfield, Wisconsin. It is in the historic building where the Marshfield Clinic started over 100 years ago, with four doctors who worked together in different specialties for the benefit of their patients. Today, there are over 1,000 physicians who practice in about 90 specialties.

If two or three doctors who are caring for a patient don’t talk to each other or compare notes, this would be considered malpractice. You would be upset if you or a loved one was under doctors’ care and the doctors did not talk to one another about the treatment they were using or the medicine they were prescribing.

So why should it be different when two or three financial specialists work together on a client’s financial plan? It is normal for most financial professionals to work on a client’s plan and not even reach out or collaborate with the other professional—whether they are doing refinancing, a Roth conversion, a retirement plan, tax planning or any other fundamental changes and financial restructuring.

These recommendations and decisions dramatically affect the client for years to come, and while they are not life and death decisions like the ones doctors make, they still have dramatic long-term effects. A client’s financial wellbeing and ability to live comfortably until the end of life are a direct result of the advice given decades before.

The more resources that are used to pay off a house means there is less money for long-term care and life insurance, annuities and liquid assets under management. This often undermines cash flow, legacy and net worth later in life. If mortgage professionals and financial advisors would work together using the new research, these funds could be redirected into the most effective and profitable places, which would make a true difference for thousands of people during retirement.

This is how Hopkins explains it in the article cited previously:

Financial services professionals are here to serve clients and make their lives better. Advisors who believe that they act in the best interest of their clients need to consider including home equity and, consequently, reverse mortgages into their practices when doing retirement income planning. A best-interest model requires the advisor to review those factors that might reasonably impact any recommendation.

The home, a potential reverse mortgage or an existing forward mortgage are clearly factors that need to be considered when reviewing a client’s financial plan. While many advisers do review the existing mortgage and perhaps recommend refinancing, this is usually where the advice stops — leaving a wide range of factors affecting the client’s situation unexplored.

The reality is that the home is too large an asset to be ignored when doing financial planning. For many clients, it is going to be their largest asset. Furthermore, from a cash flow perspective when doing retirement income planning, an existing mortgage payment or a coordinated reverse mortgage could represent the largest cash flow items for a retiree.

Fairway Independent Mortgage Corporation and its 600-plus offices want to change that by working with NAIFA and financial and insurance professionals. From a national perspective, we will provide education and up-todate research and advice from top experts in taxation, retirement, legal and financial planning topics.

At Fairway, we explain that every client has three buckets of wealth. Bucket one is their ability to make money and create income. Bucket two is their Nest Egg money—the savings they have put away for the future and what is typically managed by financial professionals. The third bucket is their home and the equity that they have created by paying into a mortgage for most of their lives.

What is done in each of these three buckets directly influences every decision that is made in the other buckets and should never be done in isolation. Most people don’t realize that people over the age of 62 have amassed over $7 trillion in home equity, which is completely illiquid.

Over 40% of people over the age of 62 are still making mortgage payments, and most of them would be better off directing that money into Bucket 2, based on the conclusive research done by Dr. Wade Pfau, Barry Sacks and others in the financial planning world.

At the grassroots level, we will expose our borrowers to the most educated and ethical financial advisors working in the same communities in which our offices are. We will make all of our trained traditional and reverse mortgage planners available to the financial advisor clients so that mortgages and home equity can become an integral part of EVERY plan.

Together, we can change the way financial planning and retirement planning are done in this country.

A client’s financial ability to live comfortably until the end of life is a result of the advice given decades before.

Harlan Accola is National Reverse Mortgage Director for Fairway Independent Mortgage Corporation.

EDUCATE OLEG KRUGLIAK/SHUTTERSTOCK.COM

How to Have Clients Call You

Focus on quality-of-life planning, find your “why” and articulate it effectively.

By Shane Westhoelter, AEP, CLU, LUTCF

t was 1988. I was going door to door selling life insurance policies. A few months into the business, I delivered my first death claim check to a mother who had just lost her 7-year-old son in a drive-by shooting. She thanked me for being such a great insurance man and for stopping by each month to collect the premiums to make sure the payments were made.

Then she said something to me that changed my life forever: “Mr. Shane, thank you for delivering this life insurance check. You see, Mr. Shane, this check allows me to keep my dignity. I will not have to ask my friends, my family or my church to give my son the decency he deserves. Once again, thank you, Mr. Shane, for allowing me to keep my dignity!”

It was from that point on that I understood the importance of what we do in the insurance profession. We don’t just sell life insurance, long-term-care insurance, disability insurance, etc. What we do is provide people with dignity when it matters the most.

Find

WHAT IS QUALITY-OF-LIFE PLANNING?

Quality-of-life planning focuses on four key components:

• What if I live?

• What if I linger?

• What if I leave?

• What is my legacy?

“What if I live?” This is about longevity planning and having the money you need to live the life you want to live with dignity until the day you die.

“What if I linger?” This is about providing proper coverage if you become sick, hurt or disabled. Can you get the quality of care you desire to keep your dignity?

“What if I leave?” This is about the two big Ds: death and divorce. Will your assets transfer as you desire to those you care about? Will you be able to keep your dignity, even after you pass?

money to your children, grandchildren or charities, or will you create a foundation to be remembered?

Focus on quality-of-life planning and dignity as opposed to selling products. This allows you to set yourself apart. To be effective, find your “why,” build your marketing plan, implement your plan and articulate your “why” effectively.

What we do is provide people with dignity when it matters the most.

SETTING YOURSELF APART

Set yourself apart, and you will not need to ask for referrals. When we provide dignity and stop selling products, people will refer family and friends to us. Quality-of-life planning is more than just financial planning; it also brings in a comprehensive and holistic approach, needs-based conversations, storytelling and resources.

PROVIDING VALUE-ADDED SERVICES

For example, we provide our clients with an emergency kit that allows them to keep all their medical information in one place in the event of an emergency.

We also offer medical information cards for them to keep in their cars so that first responders will have access to their medical background in an emergency. In addition, we

provide them with online storage files for archiving photos, legal documents and meaningful memories.

Also, we help them write “Family Love Letters” with meaning and purpose to leave for those they love. And we help them create a lifelong legacy to be remembered by both family and the community through planned giving and lifelong checks.

UNDERSTANDING YOUR “WHY”

Understand your “why” with a passion. Why do you believe in this profession? What drives you every day?

I share that my “why” is to provide dignity, not just insurance or investments. Find your “why” and your passion, and you will not work another day, but you will enjoy bringing that passion and “why” to others.

Once you know your “why,” you need to package it to share with others so that they get your “why” and tell others about it for you. This will bring people to you. In turn, you will no longer be asking for referrals, but accepting referrals and doing business with people who understand and relate to your “why.”

Shane Westhoelter, AEP, CLU, LUTCF, is President/CEO of Gateway Financial Advisors, Inc.

Helping Clients Understand the True Value of Individual Disability Insurance

Doing so can lead to meaningful conversations about the importance of this income-protection tool.

By Jeremy Horner

With the current economic and health challenges in America, many individuals are justifiably concerned about ensuring they protect themselves and their families against the unexpected. And individuals are more open than ever to exploring ways to protect their future.

Advisors are uniquely positioned to help clients through times of uncertainty by offering income protection solutions, such as individual disability insurance (IDI), that guard against an unforeseeable event. IDI can provide longterm financial protection and added stability should a client become unable to work due to a disabling event, such as an unexpected illness or injury. By sharing a few essential details about income protection, advisors can help clients understand the true value of IDI, how it works and who needs it.

COMMUNICATING IDI BENEFITS

One of the most important aspects to communicate is that IDI can be an effective, long-term income-replacement solution. Just as life insurance pays beneficiaries for a loss, IDI can pay a monthly benefit, tailored to a policyowner’s total income, in the event of a serious illness or injury.

People rely on their whole income to maintain their financial security, which includes their base pay, any incentive pay and bonuses. Although many companies offer group long-term disability (LTD) coverage, clients should be aware that it often doesn’t cover all sources of income, and it is often taxable and typically only provides 40-60% of income replacement. It also likely does not cover bonuses or incentive pay.

For higher-income earners, LTD can be capped at an amount that is much lower than what is needed to replace a client’s monthly income. Should these individuals

experience a disabling event, they would still be expected to keep up with their higher recurring expenses. Also, most employer-based disability coverage is only maintained while the employees are working for that employer. IDI is portable income protection, which stays with the individual throughout their career no matter where they work.

Most people have not thought about how they would pay their bills should they experience a disabling event. However, everyone has monthly expenses, which often include mortgages, car and loan payments, and other recurring costs. Highlighting that expenses are recurring even in the absence of income can help clients realize how valuable IDI can be for their financial stability.

people who would find value in IDI. Young people are not immune from a potentially disabling event and should also consider how they will protect their income over the course of their careers

In fact, research shows that at least one-quarter of today’s 20-year-olds can expect to be without work due to a disabling event before they reach retirement [i] . Purchasing IDI coverage early can help younger professionals secure competitive IDI rates, and they can increase coverage as their careers progress. IDI can also provide income replacement until the age of 65 or 67, making it a long-term solution.

Giving clients a glimpse into what their financial lives would look like should they experience an unexpected long-term illness or injury opens the door for conversations about the importance of income protection. Once this stage has been set, advisors can then emphasize key considerations around the true value of IDI.

Advisors can help paint the picture for clients that if they are unable to work, these expenses would remain, with possible new expenses arising due to their illness or injury. IDI helps protect the income that clients are using to pay for these monthly expenses, maintain their lifestyles and support their families. This is even more essential during unpredictable events like we’re experiencing now.

While higher-income earners are prime candidates for income protection, they are certainly not the only group of

By providing meaningful solutions that address clients’ individual needs, advisors demonstrate how individual disability insurance can provide valuable protection and increased financial stability for clients, especially during times of uncertainty.

[i] https://disabilitycanhappen.org/disability-statistic/

Jeremy Horner is Assistant Vice President of Individual Disability Insurance at The Standard.

Highlighting the fact that expenses are recurring even in the absence of income can help clients realize the value of IDI to their financial stability.

Americans Find Breathing Room Between Bouts of Market Volatility

New study shows consumers feeling better about their current finances as they look to an uncertain close of the year.

By Ayo Mseka

As markets settle from initial COVID-19-related health and economic crises, Americans are evaluating the damage and reassessing their market volatility threshold. According to new findings from the Q3 Quarterly Market Perceptions Study from Allianz Life Insurance Company of North America (Allianz Life), fewer people expressed concern over a coming recession than they did last quarter (57% compared with 65%), though the number is still higher than it was for all of 2019.

While immediate panic seems to have died down, people are still feeling the various health, social and economic effects of the pandemic and are learning how these risks are affecting their financial situation.

According to the study, over one-third (34%) of Americans do not feel financially prepared to ride out the economic impacts of COVID-19, and more than half (53%) say the pandemic is having a negative impact on their retirement plans.

“After the initial shock of the health crisis and related market downturn earlier this year, Americans seem to be coming to terms with all the ways the pandemic is impacting their lives,” said Kelly LaVigne, Vice President of Consumer Insights, Allianz Life. “Now may be a good time for people to review their finances, including how to protect retirement assets from whatever the market may do as we head toward the election and the end of the year.”

As such, over half of all Americans (52%) say they regret not having more of their savings protected from market loss. This may be leading to an increased interest in financial protection products, like annuities.

The study found that 64% of people say it’s important to have some retirement savings in a financial product that protects from market loss. At the same time, the number of people who say they are willing to give up some potential gains in exchange for a product that protects a portion of their retirement savings from loss has been steadily

increasing since the start of the year (46% in Q3 compared with 45% in Q2 and 38% in Q1).

More specifically, nearly a quarter (23%) of people express interest in putting some money into a financial product with modest potential growth (2-3%) and no potential loss, the highest percentage in a year.

Over half of all Americans say they regret not having more of their savings protected from market loss. This may be leading to an increased interest in financial protection.

“This trend toward protection makes sense when you look at the economic and market environments since the

beginning of the year,” LaVigne added. “When you also consider that no one is sure when the current economic and health crisis will end and the added uncertainty caused by the upcoming election, it’s logical that people want to mitigate some of that risk to their retirement savings and add products that can help provide a level of protection.”

Allianz Life conducted an online survey, the 2020 Q3 Allianz Life Quarterly Market Perceptions Study, in August 2020, with a nationally representative sample of 1,004 respondents age 18+.

(Guarantees are backed by the financial strength and claims-paying ability of the issuing company.)

Are You Prepared for What’s Next?

Here are some suggestions to help you prepare for a productive fourth quarter and a great 2021.

By Robert Arzt, CLU, ChFC, LLIF

“Do something today that your future self will thank you for.” (Anonymous)

2020 has been a challenging year for most of us. In spite of these challenges, most of us still have a great deal of hope for the future. We expect that better times are ahead of us and plan on brighter days.

My question to you is: What will the balance of this year and all of next year be for you? Will you be prepared? To be clear, I am talking about being prepared to handle the unexpected, to get back on your feet, to leverage your success and be prepared to achieve new goals.

Please take a few minutes to reflect upon this question:

If you knew last June that the COVID19 virus would cause the worldwide problems that it did, what would you do differently?

Of course, none of us has a crystal ball to predict the future; however, Dennis Waitley provides us with some excellent advice: “Don’t dwell on what went wrong; instead, focus on what to do next. Spend your energies on moving forward toward finding the answer.”

If there is one thing that I have learned about achieving success from my coaching practice, it is that all success is mental. Success starts as a mental process, and everything that you think will flow from there. Your mental framework will impact the way you react to good and bad situations, how resilient you will be in the current marketplace and what you can actually achieve.

Check your progress often and make necessary course corrections.

If this year fell short of your expectations, I would like to give you a dose of reality. You are smart enough to accomplish whatever you want. You are creative enough to find new solutions to problems that you have not been able to solve yet. And you are talented enough to create and implement a new business plan that will work for you.

If this year is meeting or exceeding your expectations, congratulations! How can you leverage that success in the future?

A GUIDE FOR SETTING GOALS

Either way, use the acronym REFLECT to guide you through the process of setting goals for next year:

R- Reflect on and review the past year. Did you take responsibility for your successes and failures? Did you reward those around you who achieved personal goals and who helped you to achieve yours? Were you resilient in the face of challenges and stress? Did you take the appropriate actions to be resilient?

E- Both E’s in REFLECT stand for envisioning a bright future and striving for excellence in yourself and others. Eliminate distractions and negativity and exercise your mind and your body.

F- Have fun and be fair, but above all, remain focused on your goals and the action steps that are required to achieve them.

L- Look for lessons learned from both your successes and disappointments and incorporate what you have learned into your daily activities. What things should you start doing, stop doing, or continue doing to achieve your goals?

C- Are you absolutely committed to your success or are you comfortable in staying in your comfort zone? Are you building a culture of caring, commitment, and cause and effect?

T- What are you tolerating in your personal and professional life that you can no longer tolerate if you are

to achieve the goals you have set for yourself? Tolerations can be big or small, but no matter their size, they drain your energy and detract from your focus. “T” also stands for team . You can’t do it alone. Surround yourself with a supportive team to help ensure and accelerate your success and theirs.

CHECKLIST FOR SUCCESS

Here is a short checklist to ensure a productive fourth quarter and a head start to a great 2021:

1. Have the mental attitude that you are already successful.

2. Decide and commit to doing things differently.

3. Look for the positive in every interaction with everyone and in every situation.

4. Always be action oriented.

5. Be determined.

6. Check your progress often.

7. Make necessary course corrections.

8. Expect your goals to be achieved. Good luck on your journey to success.

Robert A. Arzt, CLU, ChFC, LLIF, is CEO of Polaris One and InsuranceCoachu.com. He coaches professionals who want to achieve more. Contact him at 510-671-6226, bob@polarisone.com or through his website at www.polarisone.com. For a complimentary coaching session, mention this Advisor Today article.

Retirement Readiness May Be at Risk for People of Color

In a new survey, less than half report ownership of financial instruments that can help them with retirement security.

By Ayo Mseka

Although they suggest feeling reasonably prepared for retirement, Americans who identify themselves as people of color (POC) report limited retirementfocused investments and lack of progress toward achieving important retirement goals. These findings indicate a potential misinterpretation of their financial situation that may put POC’s retirement readiness at risk. This is according to the 2020 Retirement Risk Readiness Study * from Allianz Life Insurance Company of North America.

The study found more than half of POC believe they are currently saving enough in a retirement account (55%), and a nearly equal amount (52%) feel they have plenty of time to save for retirement. These feelings of preparedness are underscored by the fact that more than one-third (35%) of POC say retirement is too far away to start worrying about it.

“The level of confidence POC have in their retirement readiness could be attributed to different cultural values that shape their decision-making,” said Cecilia Stanton Adams, Chief Diversity and Inclusion Officer, Allianz

Life. “Oftentimes in communities of color, breadwinners are expected to balance support for multiple generations with their personal retirement goals. This complexity, among others, could be responsible for the disconnect we see between perception and reality, putting POC at higher risk for retirement insecurity.”

A significant factor in POC’s retirement readiness may be a lack of professional help.

Indeed, less than half of POC respondents report ownership of investments and accounts that can help with retirement security. This includes participation in employee sponsored plans (48%) and ownership of accounts including life insurance (33%), IRAs (21%) and fixed or variable annuities (5%).

Furthermore, less than half of POC report making progress toward achieving some of their personal retirement goals. Some of these measures include “setting

long-term financial goals” (46%), “diversifying my retirement savings to protect more of my nest egg” (40%) and “purchasing a financial product that provides a guaranteed source of retirement income” (25%).

“Given that a recent study from the Brookings Institution found the net worth of a typical white family is nearly ten times greater than that of a Black family,** it’s not surprising that our study shows that POC may be behind in developing a sound retirement strategy,” noted Stanton Adams. “This highlights an opportunity for POC to address their financial situation head on, including working with a financial professional who can help them develop an achievable retirement plan.”

Some of these concerns include “having unexpected, large expenses to pay” (63%), “becoming a financial burden to your loved ones” (52%), “not having enough money to do all the things you want to do in retirement” (53%) and “not being able to stay in your home” (48%).

“We believe that POC want to take more control of their finances, but may be struggling to find the right support from a financial professional,” said Aimee Lynn Johnson, Vice President of Financial Planning Strategies, Allianz Life. “This leaves room for financial professionals to better serve these communities through education, outreach and support in building retirement strategies that can mitigate some risk.”

LACK OF PROFESSIONAL HELP

A significant factor in POC’s retirement readiness may be a lack of professional help. Less than one-third (32%) of POC indicated that they are currently working with a financial professional. One potential repercussion is that nearly seven in 10 POC say they plan to work into retirement. At the same time, POC indicate a significant level of concern about a variety of retirement issues on which a financial professional could provide assistance.

*Allianz Life conducted an online survey, the 2020 Retirement Risk Readiness Study, in January 2020, with a nationally representative sample of 1,000 individuals age 25+ in the contiguous U.S. with an annual household income of $50k+ (single) / $75k+ (married/ partnered) OR investable assets of $150k.

** Brookings Institution: Examining the Black-white wealth gap, February 2020 https://www.brookings.edu/blog/upfront/2020/02/27/examining-the-black-white-wealth-gap/

Less than one-third of POC indicated that they are working with a financial professional.

NAIFA Launches New Future Leaders Program

The goal of the program is to reach out to students interested in careers in the financial services industry.

By Emily Cabbage

NAIFA has recently unveiled a new Future Leaders program for students interested in careers in the financial services industry. The new program is under the oversight of NAIFA National’s Young Advisor Team (YAT) Committee, chaired by Blake Gillies, DIA, Director, The DI Concierge.

The Future Leaders program increases the number of offerings of NAIFA’s Talent Development Center of Excellence, launched earlier this year. The Talent Development Center is a new NAIFA initiative meant to create a content and event hub focused on topics of personal and professional performance during every stage of an advisor’s business lifecycle.

In addition to the Young Advisor Team, which focuses on programs for advisors under the age of 40 or with fewer than five years in the business, The Talent Development Center houses NAIFA’s Diversity, Equity and Inclusion work and award programs.

“The Young Advisor Team has been hard at work this year amplifying our message to new advisors as to the

value of belonging to your professional association,” Gillies said. “It just makes sense that we should expand our reach to include students who are interested in coming into the business and teach them the tremendous role NAIFA plays in advocacy in the financial services industry.”

The University of Illinois was the first educational institution to sign onto the program and included attending NAIFA’s Performance + Purpose professional development conference as part of its finance curriculum for the current semester.

Students from Texas A&M University, Penn State University and Winthrop University will also participate. The program is open to any college student, and colleges and university faculty are invited as well.

The University of Illinois was the first educational institution to sign onto the program.

PROGRAM KICKOFF

The inaugural session was started on Oct. 6, and it included a short program featuring top NAIFA members, complimentary access to NAIFA’s 2020 P+P Conference and concluded with a session with sponsor, Cambridge Investment Research.

Christopher Gandy, University of Illinois alumnus, NAIFA-Chicagoland President and Founder of Midwest Legacy Group, kicked off the program by presenting a session titled, “The Power to Provide Financial Security.” This was followed by a panel discussion of YAT occupying different roles in the financial services industry that included:

Isaac Amaya, Annuity Sales Manager at The Pinnacle Group

Becky Brothers, Regional Marketing Strategist at Principal Financial Group

Cheryl Canzanella, LUTCF (2019 Young Advisor Team Leader of the Year), and Brokerage Director at MassMutual

Derek Scheetz, Financial Advisor at Lifetime Financial Growth

Delvin Joyce, CLU, ChFC, RICP, Managing Director at Prudential and member of NAIFA’s board of trustees, presented a session titled, “The Power of Mindset.”

And Brian Haney, CLTC, CFS, CFBS, CIS, LACP, CAE, Vice President of The Haney Company, concluded the program with a session on how NAIFA elevates your personal brand and differentiates you in a competitive landscape.

Immediately following the last session of P+P, students came together with Shane Westhoelter, AEP, CLU, LUTCF, CEO of Gateway Financial Advisors, Inc., and Jeff Vivacqua, Vice President and Chief Marketing Officer at Cambridge Investment Research, gave the students insight on the profession and took a few questions as well.

To learn more about the Future Leaders Program, visit Tdc.naifa.org/futureleaders.

Emily Cabbage is Director of Marketing at NAIFA. Contact her at ecabbage@naifa.org

Building a Path to Financial Independence

Start by first saving for yourself each month.

By Ike S. Trotter, CLU, ChFC, RICP, AEP

There are those who will tell you that if the world was perfect, everyone would have the same financial opportunities and live a life of comfort and happiness, with no monetary concerns.

But the world is not perfect. All of us, regardless of financial status, possess good as well as bad traits. Occasionally, luck may come our way, but most times it doesn’t. And even though we often make good choices in life, on occasion, we also make mistakes, and from these mistakes, life dishes out the usual punishment.

One of the most elementary, yet fundamental, tenets of financial planning is that you don’t invest until you have adequately saved some money. But unfortunately, saving continues to be a real dilemma for the average American wage earner.

When I began my business career some 45 years ago, I was taught a very basic financial lesson by our great NAIFA legend, Tom Wolff. The lesson goes something like this: There are those who will spend their income each month

and then save what is left at the end of the month. However, there are those who commit to saving a certain portion of their income on the first of each month and then spend the balance. As only Tom could express it, those in the first category usually end up working for those in the second.

BUILDING A BETTER FINANCIAL FUTURE

As financial professionals working to secure a sound financial future for our clients, how do we turn things around? How do we commit to a bright financial future for ourselves, our clients and their children?

I think it starts with adhering to the discipline of saving for yourself first each month. This requires a budget to

Getting ahead financially today requires skillfully setting goals and understanding the rules of how money can work to your advantage.

be instituted through which we pay ourselves “first” each month, instead of paying ourselves last.

Here’s an idea worth exploring: Begin this process by looking at the mirror each month and asking yourself a few key questions, such as:

• “How much can I pay myself each month?”

• “In order to be where I want to be financially in five or 10 years, what will it take to achieve this goal?”

• “Can I commit to this goal and resolve to stick with it?”

This plan may entail saving only $10 a week, but we must remember that every great accomplishment starts with a first step.

We must also remember that Rome wasn’t built in a day—and neither will turning your financial house around. Are you ready to take that first step you’ve been planning to take but have been putting off each year?

To my way of thinking, getting ahead financially today requires skillfully setting goals and understanding the rules of how money can work to your advantage.

Those who put up with a little sacrifice today can go a long way towards building the financial momentum they need to get ahead financially. With times being what they are today and a new year right around the corner, the lessons taught by Tom Wolff still work if you put them to good use.

Ike Trotter, CLU, ChFC, RICP, AEP, is a well-recognized NAIFA advocate and operates his own planning firm, IKE TROTTER AGENCY, LLC, in Greenville, MS. A 45-year veteran of the financial services business, Trotter also serves on the Editorial Advisory Council of Advisor Today.

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MDRT 2021 Executive Committee

UNITED. DETERMINED. STRONGER.

The support of an unmatched community, online resources for personal and professional development, and world-class meetings equip members to come out ahead of the global crisis and envision a brighter future for their clients.

The MDRT Executive Committee invites you to start your journey with MDRT. Together, we’re making our way forward. Learn

MDRT 2021 Executive Committee: (From left to right): Peggy Tsai, RFP, CCFP, Second Vice President; Randy Scritchfield, CFP, LUTCF, First Vice President; Ian Green, Dip PFS, President; Regina Bedoya, CLU, ChFC, Immediate Past President; Gregory Gagne, ChFC, Secretary.

The NAIFA Centers

NAIFA has created three Centers of Excellence to serve as content hubs, offer events and connect you with experts to help you build your centers of influence. The three Centers house a variety of programs that serve both members and non-members alike. Through collaborative partnerships and sponsorships, NAIFA is able to provide thought leadership to the financial services industry and specifically to producers in specific practice areas.

Personal Excellence

Talent Development CENTER

The Talent Development Center brings together resources focused on personal performance. From prospecting to personal branding, from professional development to gaining new credentials or designations, to sales ideas to keep you inspired, the Talent Development Center houses content and produces events that focus on helping you be the very best you can be. The Center also houses the work of NAIFA’s Diversity & Inclusion Task Force and is the home of the Young Advisors Team and awards programs.

Practice Excellence

The Business Performance Center focuses on everything you need to do to run an exceptional practice. From when to hire help to expanding your book of business through expanding your offerings, the Business Performance Center will house the content and hold informational events to help your business succeed. It is also home to the Advanced Practice Symposium which is an educational event produced in partnership with the Society of Financial Service Professionals.

bpc.naifa.org

Subject Matter Excellence

The Limited & Extended Care Planning Center is our first subject matter-specific Center focused on long-term care. The Center’s focus is to raise awareness of the broad array of options available to today’s financial planners when working with clients, as well as to raise consumer awareness about the need for a sound plan. The Center holds events for both financial advisors and consumers and is possible through the support of our partnerships with key companies in the long-term care industry.

Transforming Lives.

The Life Lessons Scholarship Program helps students who are struggling financially because of the death of a parent or guardian with little to no life insurance achieve their dream of a college education.

Since 2005, this Life Happens program has awarded more than $2.2 million in scholarships to 600 students.

You can support this important program by co-sponsoring a student’s scholarship from start to finish with a customizable selection process.

This unique opportunity combines three essential elements:

• charitable giving,

• employee engagement, and

• marketing efforts.

Learn more by contacting cobrand@lifehappens.org

“Life insurance can’t bring a parent back, but it can make the road afterwards easier for those left behind.”

—Miranda Rivera, whose father died at 44 without life insurance and recipient of a Life Lessons Scholarship