Strategy or product…what’s more important?

I was in a meeting yesterday with a new prospect and she asked me “Are you a whole life insurance person”?  As many of you know, I do like whole life to solve various financial problems but the question struck me as interesting.  Whole life is just a product.  It is a financial tool with different benefits.  Whole life is no different than a stock, bond, real estate, mutual fund etc.  All of these products are tools with different financial benefits.  When executing a proper financial plan, financial products are used to implement a strategy.    The strategy comes first, than the products...

Unfortunately, people are so focused on the product that they miss the strategy/skill. how all the products work together to obtain the goal.   Investing more money in the market is a strategy but to what end?  So now you have $2 million dollars in your 401k, invested in the stock market, and your 65:

  • How do you get the money out?

  • How much money can you take out and not fear running out of money?

  • How much do you need to take out to pay your bills?

  • What are your taxes; how much of your money to you get to keep?

Now we are beginning to talk strategy.  If I can maximize your income in retirement, give you more money with benefits, and reduce your tax, do you care what products we use to implement the strategy? 

Strategy/skill is far more important than the products.  Just ask a professional golfer if their success is due to the type of golf clubs he/she plays with or is it their strategy/skill?  The answer is very clear and it’s no different in your financial life!