One of my favorite movies is “The Karate Kid.” The story is about a boy named Daniel who moves to a new
town and is bullied by the school kids. He is
befriended by an elderly man, Mr. Miyagi,
who eventually becomes his mentor and
teaches him karate. At first, Daniel wants to
use his karate skills to be the aggressor, but
Mr. Miyagi explains karate is not about
offense. Instead, karate is about defense.
Our profession is actually a lot like karate:
it is never about offense but always about
defense. Remember, we do not make people
rich! We can, however, use guarantees to
prevent our clients from ever being poor.
Ask your prospects and clients a few strategic
questions and you will have more appointments
First, ask how your clients plan to build a
quality retirement plan if interest rates remain
near zero for another decade. How will your
clients achieve retirement success if the stock
market has no growth or even losses for the
Stock markets are crashing everywhere, and
Japan began paying negative interest on their
sovereign bonds. Including Japan, 23 percent
of countries are paying negative rates on their
government bonds. Meanwhile, global debt
has increased from $137 trillion in 2008 to
$223 trillion now, and most of the world’s
economies are struggling with deflation.
Increased debt and deflation are a time bomb
that will harm both economies and markets.
Next, ask why your clients think they have
to lose money in order to make money. Time
value of money shows money available now
is worth more than the same amount in the
future due to its potential earning capacity.
To put that another way, it is difficult to make
back losses. Growth comes easier if you do not
start with losses.
Finally, ask if your clients would be interested
in learning a way to build a quality retirement
using only guarantees? Asset growth would
not be required to provide significant increases
in retirement income over any safe money
strategy they could find. The following is an
If my client invested $200,000 in safe
money non-qualified vehicles such as CDs,
savings accounts, money markets, bonds,
etc., she would earn annual income ranging
from $200 to $4,000, fully taxable. We can
do better. We can provide more retirement
income, and we can do it with guarantees.
Any insurance company in America would
pay an annual income between $6,500 and
$7,000 per year, guaranteed for life, and
using only $100,000 of that money. That
is a 50 to 80 percent increase, and it is
Then my client could use the remaining
$100,000 to buy a single premium life insur-
ance policy with a face amount of $200,000.
The life insurance provides flexibility to
take advantage of investment opportunities in the future. If the client lived for 30
years, she would receive $210,000 in a zero
interest rate environment and still provide
$200,000 or more of tax free money for the
beneficiaries at death.
The important thing to understand is that
I can accomplish all of this using only guarantees. I don’t even have to make them any gains
to provide much higher retirement income.
You are Mr. Miyagi, and your clients are
like Daniel. Make them understand the power
that comes from defense, so they have the
confidence and peace of mind that comes
from knowing they can withstand any attempt
to “sweep the leg” out from under them. It
is a wonderful time to be an insurance and
financial professional. RA
How do you help your
clients understand the
power they have in
the markets? Go to
to share your ideas.