Expand and Elevate Client Relationships: Live On Leave On Money

May 12, 2025
Published by: Charles Durfee

Alright team, Charles Durfee here, and let's talk straight for a moment, like we're having a quick coffee. We spend so much time chasing the next sale, the next big policy, and we can lose sight of the real reason we're in this business. It's not just about the numbers; it's about helping people navigate the real-life issues that concern them.

In a recent webinar episode of "Coffee with Closers" we shifted focus from IULs to tax strategies, particularly the concept of "live on" versus "leave on" money. The discussion centers around how financial advisors can better serve their clients by understanding and managing the different "buckets" of money they possess, primarily focusing on qualified, non-qualified, and tax-free assets. I outlined a non-intrusive approach to client conversations, emphasizing tax efficiency and asset reallocation, rather than solely focusing on investment growth. Advisors can become "connectors" who educate clients on the tax implications of their financial decisions, helping them strategically move assets to more favorable positions, especially as they approach and enter retirement.

I've been reflecting on our "Coffee with Closers" discussions, and the "live on, leave on" concept keeps resonating with me. It's a simple idea: "live on" is the money used for daily expenses, and "leave on" is what's saved for the future, for unexpected events, or to create a legacy.

What I consistently observe is that many clients, particularly those nearing retirement, have a significant portion of their "leave on" money in qualified accounts. This, as we know, means substantial future tax liabilities. And let's be honest, no one wants to pay more taxes than necessary.

This is where we, as agents, provide real value. We're not merely selling policies; we're offering solutions. We can demonstrate how to strategically reposition those assets into more tax-efficient vehicles. We can help them utilize "leave on" funds to establish policies that mitigate future tax burdens, safeguarding their families and their legacies.

I understand that some of you might perceive this as complex financial planning. However, it doesn't have to be. Communicate with your clients as you would with a trusted friend. "You've worked hard for this. Let's ensure you and your family retain as much of it as possible."

We're not competing with stockbrokers; we're offering a distinct service. We're showing clients how to protect their accumulated wealth and ensure it's distributed according to their wishes. They appreciate this proactive approach.

Therefore, during your client meetings, move beyond standard sales pitches. Inquire about their "live on" and "leave on" funds. Demonstrate how you can assist them in navigating tax-related challenges. You'll find that this fosters genuine relationships, leading to sustainable business growth.

Maintain a straightforward, authentic approach, and continue assisting clients in building secure futures. That's our purpose, and that's how we make a tangible difference.

Charles Durfee, FICF - Principal

Disclaimer: This blog post is for informational purposes only and does not constitute financial or investment advice.