Probably the very biggest error that is made with financial planning by people is the mistake regarding "time horizons." By definition a time horizon when speaking of financial uses is the length of time a sum of money is expected to be invested. If our time horizon is next year then options are less and if our time horizons are further, options increase.

It is partially human nature because the older we get the shorter we think. As an example if I were to say to a seventy-five year old female that she should buy a 15 year bond she wouldn't agree, but based on life expectancy tables it is about right.

So in discussing time horizons I use the example of US Treasuries. I point out to the prospect that by looking longer they have more options.

"Mrs. Jones, the very safest place to keep your money is in US Treasuries. But if you don't look longer you will not receive the higher rates. As an example a one year Treasury may only pay 1-2% but a ten year Treasury may pay 4-5%. By looking longer we have so many more options."

The illustration I used above is easily understood. Once a prospect understands their option in relationship to their goals, selling the right product makes great sense.

We provide longer term products and by explaining the safety of our products as we would US Treasuries. Positioning our products in the same category of other safe and secure products allows our prospects a great level of confidence.

Try it; "looking longer" has many more options for our prospect.