September 1, 2022

The Rainmaker Multiplier On-Demand: Marketing Automation

Executive VP of Marketing at C2P Enterprises, and CMO at JL Smith, Matt Seitz, hosts this episode of the Rainmaker Multiplier On-Demand Podcast. He is joined by C2Pe’s Digital Marketing Manager, Nico Vonderau, and Marketing Manager at JL Smith, Suzanne Scheiman, to discuss the importance of marketing automation and technology in the financial services industry. 

Marketing automation includes software that helps companies, especially their marketing teams and sales departments, effectively market to and communicate with multiple channels, including leads, clients, audiences, personas, etc. 

This omnichannel approach includes communication tools for financial advisors that ensure that the right message goes to the right person at the right time.  

Customer relationship management (CRM) software and content management systems (CMS) can help financial advisors organize their clients and their communications to make sure prospects remain in the sales funnel and don’t fall through the cracks.  

Start small. 

“You don’t need to go out and buy the Ferrari right away.” 

Ask yourself the following questions. 

  • What action do you want the recipient to take after your message? 
  • How do you want to communicate your message? 

We talk a lot about holistic financial planning at C2P Enterprises. There’s an educational component that just makes sense when it comes to marketing automation. As the advisor, it’s your job to give them the information they need to make educated decisions about their financial future. 

The Bucket Plan is designed to simplify holistic financial planning for both advisors and their clients.  

To learn more about how our marketing programs for financial advisors, book a free call with one of our business development representatives.  

HSA Investment Strategy in a Holistic Financial Plan

Using HSA Investment Strategies in a Holistic Financial Plan

Positioning HSA Investment Strategy with The Bucket Plan

There are many solutions for financial advisors to achieve profitable business lines using health savings accounts (HSA). Implementing an HSA investment strategy into the client’s retirement plan can help them in the future regardless of their medical needs.

Since the client owns the health savings account, they can take it with them when they retire or switch jobs, and you can invest it in the same way you would an individual retirement account (IRA) or 401k.

If the HSA is treated like any other investment account and maxed out each year, it can grow into a safety net that the client can use for medical expenses as they arise or save for retirement.

Helping Clients Understand the Benefits of a Health Savings Account

Health savings accounts provide various solutions for financial advisors that can benefit their clients. But one of the most important is the triple tax advantage of using an HSA investment strategy. And it’s never too soon for early retirement tax planning.

  • Tax-deductible contributions
  • Funds grow tax-free
    • Interest
    • Dividends
    • Capital Gains
  • Qualified medical expenses are tax-free

Understand the Position of an HSA in The Bucket Plan

Clients with pre-existing conditions use their HSA in the Now Bucket of their holistic financial plan. They can use their health savings accounts to regularly buy prescriptions and medical devices, pay for office visits, etc.

Flexible spending accounts (FSAs) follow a use it or lose it approach. This means the client will forfeit any funds remaining after a specified date. Alternatively, HSAs can be rolled over year after year with no penalties.

Unlike IRAs and 401(k)s, health savings accounts do not require clients to take distributions at a certain age.

Saving for a Soon Emergency

Incorporating an HSA investment strategy into your client’s holistic financial plan can help them prepare for a procedure or planned expense like elective surgery or orthodonture.

This falls into the Soon Bucket of the client’s Bucket Plan.

What happens if an emergency occurs, and the client finds themselves in a situation where they don’t have enough funds in their health savings account to cover the related costs?

Once in the client’s life, you can roll the maximum annual HSA contribution limit from the client’s IRA into their health savings account.

Boosting Retirement Savings in the Later Bucket

After age 65, the client can use their health savings account penalty-free for non-medical expenses, but it is taxed at the standard income-tax rate.

However, it’s not guaranteed that your clients will maintain a clean bill of health until then. In fact, statistically, most won’t.

So, it’s essential to carve out space in the client’s holistic financial plan for health care expenses.

Estimates in 2022 show the average retired couple over age 65 requires approximately $315,000 for medical costs in retirement.

Do not be afraid to have difficult conversations with them. Open and honest client communications are essential to finding new profitable business lines and solutions for financial advisors.

Building out the HSA investment strategy as part of the overall holistic financial plan can protect your clients should any new healthcare concerns arise in the future.

HSA Investment Strategy Alternatives to Use in a Holistic Financial Plan

To take full advantage of the HSA investment strategy is to do exactly that: invest it.

Recall that there are three tax benefits to health savings accounts: tax-deductible contributions, tax-free growth, and tax-free distributions.

If the client has minimal health care costs and they are able to max out the annual deposits and employer matches, it can grow into a healthy account for them to draw from later.

The client’s contributions can remain in the account, earning interest for as long as possible. If they can avoid dipping into their health savings account except when necessary, they can realize substantial returns in their retirement years.

Understand the Placement of HSA Investment Strategy

Many health savings accounts require a minimum balance before the client can use it for investment purposes like stocks, bonds, mutual funds, or exchange-traded funds (ETF).

Where is the client on the retirement timeline? If they are retiring soon or looking at early retirement, you may want to look at investment options with a low volatility rate.

Alternatively, you might consider a more aggressive investment strategy if they have some time to invest before retirement.

To learn more about how C2P Enterprises helps find solutions for financial advisors to achieve profitable business lines, book a FREE call today!

Financial Professional Use Only

The information provided in this presentation is not intended as investment advice or legal advice. The information provided is for informational and training purposes only. The information in this presentation was accurate as of the time of the material was created. Tax laws and rulings can frequently change. Please discuss the client’s current situation with an accountant or tax advisor.