An objection can either be real or an investor’s way of creating distance from you. Investors sometimes offer up excuses or contrive circumstances to hide their real emotions. It always boils down to the same thing…fear of the unknown.

…I’m going to wait until the economy is on solid footing

…I’m going to all cash

…I’m fully invested and lack liquidity

…I own a business and the future is uncertain

…My dog ate my portfolio

In reality, objections are merely a request for more information and better understanding. People only act when they have clarity and confidence. Confidence however comes at a premium in these unprecedented times. You are in position right now to introduce a new, old idea that can bring clarity and definition to an uncertain future.

But first, you need to overcome the objections. Remember, your prospect isn’t being combative when they throw up roadblocks. They just don’t understand yet. Keep asking “feeling questions.” Feelings precede thoughts that promote belief and action.

It’s been said that 90% of all communication is non-verbal. Interpreting what is said for its real meaning is far more art than science and it requires you to look beyond the literal meaning of the words for understanding of what lies beneath. For instance…

  • I’m going to wait until the economy comes back might mean “I rode my stocks all the way down”
  • I’m going to cash could mean “I can’t take it and I quit”
  • I’m fully invested and lack liquidity could say “I’m asset rich and cash poor”
  • I own a business and the future is uncertain may mean “I don’t have enough information to make good decisions”
  • My dog ate my portfolio might need to qualify your prospects better…just say’in“

A good advisor doesn’t necessarily ignore “No” but he or she always must persist to determine if the “No” means “No” or “I need more information and a new idea…PLEASE HELP ME!” It’s hard to remember sometimes when someone is peppering you with questions and objections that you are there for a reason. They didn’t let you in because they had time to kill or enjoy wasting your time. You are needed.

So, here’s that new, old idea. Do you remember what a Pension is? In investment industry parlance, this was known as a Defined Benefit Plan.  Put in your time and for the rest of time, you get a check that grows with inflation. You don’t have to follow the market and make decisions…just pay your dues and your loyal employer pays you your just due for life. Wouldn’t that be nice?

So, what if you could build your own self-funded pension? What if your pension could grow on a defined basis instead of in a speculative/volatile way?

The typical so-called diversified 401k portfolio of multi-cap-domestic-international-stock-bond-money-market mutual funds hold many of the same securities. There often is little differentiation amongst fund options to defend against the effects of volatility. This is known as Overlap (https://www.investopedia.com/terms/f/fund_overlap.asp). All boats tend to rise and fall with the tide.

A Senior Life Settlement Portfolio investment makes an ideal differentiator in a portfolio over-weighted in marketable securities because it works entirely different than a stock or a bond.

A “Market” is known to a be a Perfect Forward Discounting Mechanism (https://www.investopedia.com/terms/f/forwarddiscount.asp) because all information and sentiment are baked into the price. With a stock or other marketable security, you purchase at the market price with hopes that the issue will outperform, earnings increase, dividends and interest get paid and the asset prices appreciates over time. Of course, securities price action can move up, down, sideways or default.  All manners of risk are at play here and affect the market price.

By contrast, a Senior Life Settlement has a Defined Death Benefit which is the Face Amount of the policy. A Life Settlement is purchased at a significant discount to the Death Benefit. The difference is the Spread or Yield-to-Maturity.

The only source of volatility in a Senior Life Settlement is time. There is little speculation here. This is a contract where the investor assumes the rights of the insured. There’s only one possible outcome.

Choppy markets, low interest rates, unemployment, Covid-19, oil, war, natural disasters, bad acne…all inconsequential to a life insurance policy.  When you think of diversification and correlation, it makes sense to buffer volatile assets with non-volatile asset classes. Think of Life Settlements as a ballast for a top-heavy ship being tossed about in heavy seas. That’s a good story.

Now is the time to get back to work and kickstart the remainder of your year! Call West Coast Settlements at (657) 254-4300 or send an email to info@westcoastsettlements.com to learn more and to find out how Life Settlements provide a stable investment alternative to clients who are leery of today’s stock market.