Leaders Need 'Micro-Knowledge' to Achieve Big Goals

For many, great leadership begins with being a people person. But among other essentials, you need “micro-knowledge” about the work that your teams perform.

That’s the perspective that Scott Golde, enterprise chief ethics and compliance officer of Jackson Financial, offers in an interview with ThinkAdvisor.

“You have to … dig in and spend time with your teams. If you don’t understand the systems they use, you can’t be their effective leader,” says Golde, a 2023 ThinkAdvisor Luminaries award winner for executive leadership.

“And you need to have an execution focus,” he argues.

Golde, a senior vice president, is head of compliance for Jackson’s parent company, which includes a broker-dealer, three insurance companies, two investment advisories and other units.

Golde, who earlier worked as a federal prosecutor, said that background has helped him in his current position: “I understand how regulators think” and “can identify risks” that others might miss, he says.

In the interview, Golde delves into how insurance products — especially annuities — can help advisors with clients’ retirement planning. With the flurry of Americans reaching retirement age and those already retired, annuities scored record first-quarter sales this year.

Here are highlights of our conversation:

THINKADVISOR: Are financial advisors recommending insurance more for retirement savings?

SCOTT GOLDE: I don’t know about more, but I think it plays a significant role in what they’re recommending because people heading toward retirement are scared of outliving their money. 

How are annuity sales going?

They’re doing really well. The first quarter of the year was the strongest first quarter for annuity sales ever. 

It’s not an accident; there’s a need for these products: More retirement savers and investors are reaching or surpassing 65, so that’s driving a lot of annuity sales.

What types of annuities are most popular?

You’re definitely seeing sales of fixed and fixed indexed annuities, which typically have 100% protection. You can’t lose, and you have gain — limited gain — because of the rise in interest rates.

You’re also seeing sales of registered index-linked annuities, such as our Market Link Pro and Market Link Advisory, which are doing well. 

As people approach retirement, they offer the opportunity to have some investment protection; but they also have growth.

What’s happening with variable annuities?

That’s another product that’s done really well for us. It gives you the opportunity to invest and grow In the market over time, and it also has options for living benefits, lifetime benefits and guaranteed income.

What should advisors emphasize to clients when selling annuities?

That they can give you protected, guaranteed income over time.

[Further], depending on the product, there’s an opportunity for growth and for tax deferrals. With a lot of annuities, you can have legacy benefits and leave money to the next generation. 

You won a 2023 ThinkAdvisor Luminaries award for executive leadership. What makes a good leader?

First, you have to like people and want to engage with them. You need to listen effectively. You have to engage with your teams and understand what they’re working on to help them.

You need to have what I call micro-knowledge: You really have to understand, dig in and spend time with your teams. If you don’t understand the systems they use, you can’t be their effective leader.