The recent, wild fluctuations in the financial markets, combined with the concern that US federal income tax rates will inevitably go up, have more than a few people questioning just how far their retirement dollars will go in the future.
If there is a single objective shared by the majority of IRA and 401(k) owners today, it is the desire to find a way to make their retirement savings go further. Going further often means not only having greater income, but also knowing that this income can last longer. People want to enjoy their retirement today and for as long as they might live.
Think of the typical approach used by the majority of those involved in the financial services industries today when it comes to helping clients make their retirement dollars go further. The methods almost always center on an attempt to boost investment returns. The logic is that if the client will need more income over longer periods of time, the only answer is to grow the client’s savings into larger amounts. And the only way to achieve greater growth is to boost the returns on those savings.
The problem is that the pursuit of higher returns almost inevitably leads to exposing the client’s precious retirement dollars to greater investment risk.
If there were ever a time when people wanted less risk, it is now.
On January 1, 2010, scores of people will have another option to consider, one that could ultimately prove to be the safest way to make their retirement dollars go further. On this date, all income limitations that have prevented people from converting to Roth IRAs will be removed.
For those who fear that future tax rate increases will eat up more of their retirement savings, converting to a Roth IRA might be a relatively simple way to make these dollars go further without the necessity of taking on more market risk.
Does this mean that everyone should convert to a Roth IRA? Absolutely not. But what it clearly does mean is that a great number of people should at least take the time to learn if converting to a Roth IRA is right for them.
Therein lies an opportunity for financial advisors who have prepared themselves to help people answer this question. The greatest limiting factor in success for any of us in the financial services industry is our ability to find new, qualified prospective clients — always has been and always will be. The advisor with less knowledge, less people skills, and inferior products, will almost always outperform the majority of his competition if he has a more effective way of getting in front of more and better-qualified prospects.
Combine the power of Roth IRAs with a moderate amount of marketing skills, and that is exactly what the advisor has: a more effective way of meeting scores of new potential clients.
Roth IRAs are genuinely one of the most powerful and yet most underutilized planning tools that has every been available. When you combine Roth conversion strategies with annuities and life insurance, you have a truly special way of addressing the concerns and needs of the vast majority of the people we want as clients.
Consider how much more excitement you can add to your seminars if instead of just talking about deferring taxes, you could talk about eliminating future income taxes. What would be the reaction of your seminar attendees if you could show them how a Roth conversion strategy might reduce the taxes they are currently paying on their social security benefits?
How much interest would there be if you could show people how it can be possible to use Roth conversion strategies to build huge reserves that will one day be available to help pay nursing home expenses or to address any other financial challenges that can come with living a long life?
Would any of the people in your seminar audience have an interest in a Roth conversion strategy that could allow them to pass wealth on to their children or grandchildren in a way that would allow those heirs to benefit from a lifetime of earnings, all 100% free from income taxes? With a Roth conversion seminar, you can discuss all of these benefits and more.
Are there enough people interested in attending Roth conversion seminars? Ask 100 people today if they expect that their tax rates will be higher in the future. Do you doubt that the vast majority would answer yes? These are the people who have a particular interest in learning about Roth IRAs. It is a large audience.
Have you ever had a prospective client tell you that he changed his mind about following your advice after he used the Internet to check out your recommendations? Do a Google search for “Roth IRA” and see how much support there is for the position that they are such a great tool. With few exceptions, the leading financial experts and the leading financial publications largely agree that under the right circumstances and if done properly, a Roth conversion can be a valid strategy that should at least be considered.
A key part of a successful prospecting strategy is “pivoting” into product sales. After all, it is far too easy to fall into the trap of helping prospects understand the advantages of converting to a Roth IRA, but then failing to follow through by converting the prospect into a new client. You must have a system — prepared beforehand — for smoothly transitioning into the product sale, because otherwise many if not most people won’t ultimately convert to a Roth IRA. Fortunately, if you deal with this problem correctly, it won’t become an issue because you can utilize proven techniques for pivoting into the product sales phase regardless.
Roth conversions can be an extremely exciting concept to work with, and you are probably anxious to get started. But before you jump into the world of Roth IRAs, you must become knowledgeable about them. If your goal is to become an expert on qualified retirement accounts and Roth IRAs, then you must be prepared to spend the necessary time to gain that expertise. This is especially important when it comes to IRA and qualified retirement plan benefit rules, because they can be complex.
We recommend that you read the recently published book “The Roth IRA Boom for Advisors and Their Clients”. It is free, and chock-full of valuable information. You can find it at RothBoom.com. The website also offers articles, tools, and other information on Roth IRA sales, all designed to assist you in your continuing pursuit of educating yourself, so that you can best serve your clients.
A 35-year veteran of insurance and annuity marketing, Doug is the author of the popular book “Advanced Annuity Selling Strategies”, software developer and multimillion dollar producer. Thousands of agents across the nation have attended his seminars and learned his conversion strategies. Article Source:http://www.articlesbase.com/wealth-building-articles/the-roth-ira-boom-for-advisors-and-their-clients-1490117.html