Minimum Wage Retirement Planning

-by Marc Schwartz

Selling is a creative and dynamic process, at times requiring fresh thinking and a different approach to engage customers.

In the case of business owners, substantial monies are spent to attract and retain talented employees who can get the job done. However, often overlooked by business owners may be one of their better employees–the minimum wage employee. This is the lowest paid employee in the company who, if given the opportunity, has the ability to contribute significantly to a business owner’s success and well-being.

The “minimum wage employee” conversation is a creative and fresh way for you to make more sales with business owners.  Let’s walk through an example of how to put this employee to work for you and your business owner clients.

Your friend, Dave, is a 44-year old small business owner.  You’ve known Dave since college – he’s a hard worker, independent, creative, with a young family.   He’s put his time and energies into building the business and helping his spouse provide a good life for their children.  But Dave has never made much of an effort to invest toward his retirement.   Over lunch, Dave shares an odd encounter that he had the other day with a prospective employee.

“So this guy walks in to interview for a sales position that I have open right now.  And here’s what he says:

‘I’m not really here for your sales position, but I think you’ll find I can help with an opportunity you have right now, but that you don’t recognize.

‘First, here’s what I ask of you.  You agree to pay me minimum wage for the next 21 years.  That’s all.  No vacation, no sick leave, no benefits, no 401(k) match, no salary increases.  Just today’s minimum wage for 21 years, until you reach age 65.  That’s $7.25 an hour, $290 a week, about $1,255 a month, a little over $15,000 a year.  With me so far?

‘And here’s what I’ll do in return.  If you die before age 65, which we both hope won’t happen, the business stops paying me and I’ll give your spouse and children at least $300,000, tax-free.  I’ll miss you, but our deal will be done.  But if you live to age 65, I can potentially provide you with over $50,000 a year of supplemental retirement income until you reach age 85.  That’s 20 years of $50,000, or about $1,000,000.  How does that sound to you?’

Dave continues, “Of course I didn’t believe any of it, but he seemed to be serious.  So I asked, ‘How in the world are you going to do this?’ And he said, ‘Here’s how.’”



[A tip of the Windsor hat to our friends at Lincoln Financial for their inspiration and these supporting materials:]

Minimum Wage Retirement Planner Presentation

Minimum Wage Retirement Flyer

Lincoln WealthAdvantage®Indexed UL Illustration

Contact Windsor for illustrations and more information about the potential advantages of Indexed UL.

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