The election is over and now we seem to be standing at the edge of a “fiscal cliff,” awaiting tax increases due to the expiration of the so-called “Bush tax cuts” and across-the-board spending cuts under the Budget Control Act of 2011. However, by the time you read this we may have been given ropes to help us rappel part of the way down this cliff with the passing of new legislation to extend the tax cut provisions that are due to expire. Now all we need is patience, a harness and a few anchors to get us through the deficit reduction and the long term effects of PPACA.
What are those in the financial services industry to do? As one of this month’s authors said, “We can’t help but keep our eye focused on the present and our hearts hopeful for economic recovery in the future and…planning for the future is crucial.”
We must do what we do best: give our clients the tools they need to avoid the perils of financial ruin with the time-proven products that our industry has produced for centuries.
A new LIMRA study (Consumers’ Retirement Perspectives, fourth quarter 2012) reveals that two-thirds of middle-income American workers ($40,000 to $99,999) are saving less than five percent of their annual income for retirement—with nearly a quarter saving nothing at all.
One of the most interesting facts that LIMRA presented as a result of this study is that while current economic conditions are clearly challenging Americans’ ability to save for retirement, savings habits have not changed significantly over the past two decades. Matthew Drinkwater, associate managing director, LIMRA retirement research, says, “Our research indicates that [consumers] still need more education and guidance to help them make the right decisions to ensure they have sufficient savings for retirement.”
Bottom line, there is no time to let your clients avoid planning for their future. Every one of them has his own “fiscal cliff” and they should not wait to deal with it a few years before their retirement or when their health starts to fail!
As an insurance professional, you have all of the tools necessary to provide a solid financial ground for your clients. Take some time this month to plan your sales strategies for the new year!
One last inspiration note: The 2012 recipient of the Paul Goodman award is Sedell Rand—the first woman to be so honored. She is a legend in the New York life insurance world.
Rand started selling life insurance in 1962 and eventually started her own agency in 1968, now called SGR Agency, New York, NY. Rand contracted with William Penn in 1963—and 50 years later she’s still selling business. Her ability to excel in the male-dominated world of insurance is due, in part, through her inspiration from Jane Austen. Rand has good memories of her work with Legal & General America throughout her many loyal years, including Paul Goodman’s “sizzle” as president of William Penn.
The Paul Goodman award was established in 1998 by William Penn Life Insurance Company of New York and is given to a person who reflects the innovative spirit and commitment to the brokerage distribution system exhibited by the late Paul Goodman, the company’s former president. Goodman was known for his ability to recognize exceptional performance in the people around him; choosing each year’s honoree is William Penn’s way to truly honor Paul Goodman and his contribution to the insurance industry.
The staff of Broker World magazine wishes you a happy holiday season and a prosperous new year! [SAC]
