Building from the Approach

Hey all -

I appreciate the positive feedback from the last message on approach language - so, let’s build on it while, again, keeping it simple! Specifically, let's go a little deeper on one piece of the approach language:

“Achieving each of these things you mentioned is 100% dependent on both your ability to earn an income, and the decisions you make with that income (defensive and offensive), balancing your lifestyle needs and desires of today, with these longer-term priorities.”

In the fact-finder, usually around the ‘savings philosophy’ section, we’ll refer back to the above line from the approach and expand upon it for some general education that will lay the groundwork for our conversation in the PX:

When thinking through the decisions you make with your income, there are 4 basic elements that will drive long-term success:

1. The amount you Contribute toward your plan
2. The Interest you earn on the money you contribute
3. The Taxation of the dollars
4. The Time you have to accumulate."

When doing development work with advisors, one of the things we focus on is the relationship between each of these 4 elements. The better the relationship is understood, the more confident the advisors are, and the better they can help prospects feel educated and comfortable with their decisions to move forward.

At a high level:

• The less you contribute, the more risk you need to take to get a higher return, and vice versa - your goal is to find the balance over time.
• A significant amount of growth comes at the end of the compounding curve - you may be able to push off the end point of a goal to benefit from more compounding time, but you can’t go back and start saving 5 years ago…the most impact you can have on your success is to START!
• Compounding tax savings positively impacts growth, but deferring from a low to a high tax rate negatively impacts results, so diversifying for current and future tax flexibility is important.
• None of this works if you don’t have an income from which to contribute - protecting your income is THE critical first step!

Ultimately, especially for younger advisors working with younger prospects, this all leads to a more educational fact-finder and an uncomplicated PX to help the prospect:

• Develop a mindset of saving,
• Protect their income with DI and Life Insurance,
• Utilize the Roth option in their 401(k), and
• Start TODAY!

Now, rinse and repeat 3-4x every day, and continuously learn until you prospect into more sophisticated markets! (See below!)

The key PX pages I sent in Driving FPP #13 in November of last year, do a good job of supporting this conversation - I’ve attached them again for your reference.

Open the Key PX Pages (FPP Tools)

[Image from the original email: photo (referenced as “See below!”). Add the image here.]

If you would like to think through how to simplify your process of getting your advisors off to, and maintaining, a fast start post NTP, let’s schedule a 15 minute call!

Think Differently,

Steve