“What’s Your Number?”  Remember that ad campaign from ING (now Voya Financial)?  Each person had an orange number following them around, presumably representing how much money they need to retire. One person might have $1 million; another might have $2.5 million; and another might only need $500,000.

More recently, Voya has come around to recognize income is the most important number to track.  I know this because I have a 401k with Voya and my statement shows me how much income my 401k will provide, hypothetically, in retirement.

We all know, and I would suggest that your prospects all know, how much money they need each month to meet their basic living expenses. I may need $5,000 per month; you may need $7,000 per month and someone else may need $15,000 per month.  Once we know this number to cover what one of our reps calls the “5 Essential Needs,” we can go find income to meet those needs.

We know Social Security will provide some foundation of that income; for most people 30-40% of their monthly expense “number.”  If they are lucky, they may have a pension. But, for most people, they have a 401k, IRAs and other brokerage accounts, savings and equity in a residence to help them meet their number. The 401k typically is typically one’s largest asset, outside of their residence.

So, how much income can that 401k or IRA provide in retirement?  You can show your clients or discover for yourself by using various illustration tools. Further, by understanding In-Service Distributions (click here to read more), you can help your clients discover how, when and if they can access their 401k to provide this income in a tax efficient manner.

Did you know that 84% of people surveyed believe that having a guaranteed monthly payment in retirement is important; but only 14% of those have bought an annuity. That sounds like a market opportunity to me! Now may be the perfect time to help people solve for the number that really matters: INCOME! Call us for help on how to do it!

View More