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our clients are familiar with their credit score, but do they know they can get a retirement score that shows them the likelihood of running out of money in retirement? The Institute of Financial Wellness (IFW) has created a six-steps sales story and software that helps advisors present retirement scores to prospective clients. Below is a guest post from the IFW that shows you how.

In the following six steps, we’ll share how you can build deeper, trusting relationships with prospects, provide them with a retirement score that ensures they aren’t leaving any money on the table, and get them to take action. Keep in mind, you should complete a fact finder and the initial case design BEFORE walking through these six steps with your prospect. The IFW can help with that, but in this post, we want to focus on the six steps. Just remember that these steps are done at the second meeting.

STEP 1: CONNECT

The first step is all about connecting with your prospect. How do you do that? Share disinterested, third-party retirement education. Lessons like Tom Hegna’s “Don’t live a just-in-case retirement” can get prospects to share their fears and goals. Recall these fears and goals throughout the six steps to maintain a deep connection.

STEP 2: SETTING THE STAGE

There are three major obstacles that most of your prospects will face, so set the stage by addressing them. One major obstacle is taxes. Taxes are the lowest they have been in about 75 years, and debt is the highest it’s ever been at around $35 trillion and growing. Which direction do you think taxes are going? It might make sense for your prospect to pay taxes now instead of later.

The sequence of returns risk is another major obstacle, and most people don’t understand it. The order of returns does not matter during your prospect’s accumulation phase, but it certainly matters during their distribution phase! A volatility buffer can protect against this risk. Use these charts to explain.

Another obstacle is longevity risk. “The worry of running out of money has increased in recent years. In 2024, 63% say they worry more about running out of money than death, up from 57% in 2022” according to a recent Allianz Life study.

Addressing these three key obstacles with your prospect not only sets the stage for the rest of the appointment, but it also positions you as an authority figure.

STEP 3: VERIFY

This is a simple step where you review what the prospect wants and what they have. This also builds further trust and makes sure you have accurate information. Entering this information into the IFW’s software to generate the Retirement Score for you and the prospect. Here’s a short video showing a hypothetical example so you can see how to accomplish this step.

STEP 4: CURRENT SCORE

Here’s where you show your prospect(s) the likelihood of achieving their retirement goals. The IFW Retirement Score is generated using Monte Carlo simulations, so you can assure your clients that it’s backed by math and science.

Engineers use similar systems to ensure they’re building safe bridges. NASA even uses it to ensure safe shuttle launches. And casinos use it to make sure they always WIN! Explain to your clients, “We want to make sure you always WIN in retirement. A 67% is a D+ grade. We can do better.”

TOM’S TIP FOR STEP 4: I’ve mentioned in the past that I’m not a huge fan of Monte Carlo because I think many advisors use it incorrectly. This way uses the exact same Monte Carlo to show them what their chance of success will be if they just make a couple changes to their portfolio. Plus, it’s a disinterested, third-party output that’s based on math and science—not opinions.

STEP 5: FUTURE SCORE
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STEP 6: TAKE ACTION AND CONVERT

Step 5 is all about using the system to leverage volatility buffers and showing your prospect how that can improve their retirement score. Step six is where you demonstrate how you can help them increase the likelihood of success for their retirement plan, and that's what gets them to take action. I’d love to show you how this system can help you close more business in steps 5 and 6. Join me, Erik Sussman, and Tom Hegna for 45-60 minutes online, and we’ll show you exactly how to help clients avoid living a “just-in-case retirement.” Or, schedule your own one-on-one discussion with me.

-Erik Sussman, CEO and Founder of the IFW