Before you can deliver the perfect product, you need to figure out what it is. And to do that, you need to understand what your clients want. As the environment changes, so do their needs. And that leads to the question: What is the perfect product for today? Does it even exist?
If you asked your clients what they are looking for, you would probably get answers including:
- Tax advantaged savings: They want to defer taxes as long as possible
- Safety: No one knows when interest rates are going to rise and they want to be protected
- Liquidity: They want to be able to access their funds for emergencies
- Good return on their money: Many have lazy assets in CDs, just sitting there at low interest rates
We’re living in an interesting time, and we know things are poised to change. Tax rates are reasonably low, but they are certainly going to go up given the national debt. We’ve also had one of the longest bull runs in the history of the equity markets and no one can argue that interest rates are going to rise. As they do, the bond prices are going to get crushed and clients may be looking to exit their bond strategies.
In addition, many clients that have lazy assets in banks and CDs are planning on leaving them there for the next generation. But a better strategy is to transfer them on a tax-advantaged basis, free of probate. Currently, the average five-year CD is earning about 50 basis points—which isn’t hard to beat.
The good news is that all of those wishes CAN be delivered in one nice package. And your Ash retirement income consultant can help you get there. Give us a call at (800) 589-3000 to learn how we’re able to create tax deferral, a better rate of return, a legacy and safety, all in a very liquid format.
Your clients want safety, liquidity and tax advantages, as well as a good return on their money. Work with Ash to offer your clients a product that does all that.
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