By Dan Slater


By Dan Slater

How much do feelings come into play when you work with a customer?

You make decision based on logic and research, as a financial professional. Your customers might make financial decisions based on emotions and their life experiences. So how do you make these two work together.

Here’s one way to look at it.

Fear and greed are two emotions that can come into play for a client making a financial decision.  It could be argued that fear (not wanting to lose money, run out of income etc.) and greed (wanting to make more money) are healthy to some extent. But they also could lead to hasty decisions that don’t involve the proper time or thought.

According to a recent survey, worker confidence in having enough money to live comfortably in retirement continues to drop[1][1]. Some baby boomers are worried about how much they can spend and how they will maintain their current lifestyle throughout retirement.

By utilizing a portion of a client’s assets to purchase an annuity—and producing stable monthly income—you may have the ability to help that client produce a potentially positive, long-term result.

Clients that receive guaranteed monthly income, who are not completely reliant on their portfolio for income, should be more likely to take the time necessary to think through decisions, leaving short term emotions on the sideline.

My question for you is this: Are you taking your clients emotions into account when putting together a financial strategy?  When developing a strategy for someone in their 60’s are you considering the impact it will have on them 20, 30, or 35 years down the road?


For financial professional use only.  ADR-1229

Please note that in order to provide a recommendation to a client about the liquidation of a securities product, including those within an IRA, 401(k) or other retirement plan, to purchase a fixed or variable annuity or for other similar purposes, you must hold the proper securities registration and be currently affiliated with a broker/dealer or registered as an investment advisor. If you are unsure whether or not the information you are providing to a client represents general guidance or a specific recommendation to liquidate a security, please contact the individual state securities department in the state(s) in which you conduct business.

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