Indexed Annuity — Client Videos

The internet is an amazing tool. The informational overloaded world we live in allows you to find about anything, doesn’t it? No matter how absurd something may be, the internet provides “sources” to back it up. Test me out. Go to and type in something you feel is incredibly, almost universally, revered and respected followed by “is bad”. Charity is bad, newborns are bad, anything. For example, type in “Mother Teresa is bad” and you come up with 28.2 million hits!

Transition that into our world of safe money, financial planning. Your prospects and clients have the capability to do an internet search on anything about your business and are guaranteed to find exactly what they’re looking for; positive or negative. Take 5 minutes and see what happens when you Google “_______ is good/bad” and fill in the blank with annuities, mutual funds, REITs, stocks, life insurance, etc. My point is you could find supporting or opposing thoughts on any decision you help clients make.

So what should you do? I’d advise you quit relying on other “experts” thoughts and instead share a good story. A properly told story is worth a million words and a thousand “expert-authored” articles.  Move into the mindset of your clients and share thoughts from other retirees. Let them know what indexed annuities have done for their peace of mind and financial security!

To help, I’d like to share (and ask you share with your clients) 2 powerful videos put together by the Indexed Annuity Leadership Council.  “The Indexed Annuity Leadership Council was formed by a group of four life insurance organizations, NAFA and producers to educate consumers about indexed annuities. The IALC is committed to providing complete and factual information about the use of indexed annuities as a part of any balanced financial plan.”

The first video is about retiree Frank New entitled “Reaching Retirement Goals”. It summarizes how “Indexed annuities have helped Frank and his wife Mary Lou achieve their targets for retirement. They have always been diligent about saving money, and wanted the peace of mind and safety indexed annuities provide. Because of their stable funds, Frank and Mary Lou have been able to travel, provide funding for their grandchildren’s education and donate to causes they are passionate about. Frank explains that if he had left a large portion of money in the stock market, he would likely have to be working part-time to support he and his wife to make up for what he would have lost. Hear more of Frank’s story below:”

The second video is about retiree Louise Bridges, entitled “Retire on Your Terms”. It gives an a moving account of how “Louise Bridges, a self-employed healthcare consultant from Arizona, is planning to retire in the next couple of years. Like so many other Baby Boomers, Louise lost nearly half her investment in the stock market a few years ago. Check out her testimonial about how she landed on indexed annuities to help her plan for a comfortable future.”

You’re smart, successful and work hard, so I’ll leave the rest up to you. How do you utilize these powerful videos? Seminars (during, before or after), appointments, closings, deliveries? I don’t know exactly where they’ll fit into your practice. But I know one thing; and that’s they need to be used somewhere.

Thanks for all you provide Advisors Excel and especially your clients. If you don’t do a good job of selling yourself and your services retirees end up victims to the broken retail financial world out there. Their financial success depends on you.

Implement and thrive.

P.S. For other supporting items on safe money strategies utilizing annuities, you’re always welcome to contact me.

Annuities…Solving Problems Since 1995

You likely saw the United States recently hit its Federal debt ceiling of $14.2 trillion. At nearly the same time the United States also had its credit outlook downgraded by Standard & Poor’s from positive to negative, citing the fact that authorities have not made clear how they’ll tackle long-term fiscal pressures. News to virtually no one, the economic recovery in our country will not be quick one.

What does all of this mean to you as an advisor, and more importantly, what does it mean to your clients? Clients are more concerned than ever before about running out of money during retirement. News like the above and countless other daily stories have them scared. In fact, according to a recent Associated Press and poll, nearly half of Baby Boomers near retirement fear they can’t afford it. (CLICK HERE for the entire article.) They might run out of money using today’s numbers! But pile on top of that inflation and leaving a meaningful benefit to loved ones and it looks dire.

To help address these issues, I’m providing two presentations specifically built to ease your client’s top three financial concerns:

            1) Outliving retirement income

            2) Safeguarding against inflation

            3) Providing a death benefit to heirs

Presentation #1– This illustrates your prospects that need income with inflation protection first, and secondarily will leave money to beneficiaries (assuming a 6% payout percentage for life).

Presentation #2– This illustrates your prospects that have equal concerns of needing lifetime income but also want to leave money to loved ones (guaranteeing a 4.5% payout percentage for life).

I distinctly recall an advisor I consult saying, “Your potential clients are coming to you for help solving a problem. They don’t care what product gets them there.”  Find that problem, agitate it, make it real to them and provide sound solutions to help clients enjoy the retirement they’ve always envisioned. They’re in more uncertain waters than ever before, and you have the solutions they need!

Make it a great week!

5 Strategies for Rising Interest Rates

I recently read a Fidelity “Highlights” series article; providing commentary on the financial environment and strategies for planners and their clients (for a copy, just comment below & I can send it over).
It’s great education on bonds, interest rates and what’s likely to happen when rates rise in the near future. The base commentary on bond concepts, duration risk for interest sensitive bonds, why credit spreads matter and ultimately 5 strategies for managing this risk were all very good!

But considering this came from Fidelity, the last strategy (#5) really caught my eye. Here it was:

Try to Find a Guaranteed Income Stream 

If you have the resources to hold on to an investment until maturity, and you are saving for a goal several years down the road, consider a fixed annuity. Like a CD or bond, a fixed annuity can offer a rate of interest for a set period of years in return for a lump-sum investment. Like a bond, if you hold your annuity to maturity, you shouldn’t have to worry that your principal will be lost as rising rates cause prices to fall. Annuities can also offer the added benefit of tax deferral. So your effective after-tax yield may be higher than interest received from some CDs or bonds—if you plan to utilize the assets in retirement when your tax rate may be lower. This type of security doesn’t come free, of course. Once you sign up, you generally can’t liquidate without a penalty. So, if you may need to turn the investment into cash, or want to reinvest with a different strategy, you should be cautious. Also, since annuities are essentially contracts with an insurance provider, the guarantees are based on the ability of the company to meet its financial obligations, so customers should do their research and choose products from solid companies. You may want to consider converting a portion of your assets into a steady stream of income for life with a fixed income annuity. By staggering your annuity purchases over time, you can ensure you are not subject to one point in the interest rate cycle.

Fidelity isn’t particularly known for their annuity sales. But we can all agree there a lot of bright people there. Even Fidelity can see that as interest rates rise, the caps/rates/value proposition of fixed annuities will also increase. Retired and soon to be retired clients desperately need the two contractual guarantees fixed annuities provide – safety and income. And since you’re reading this blog and in that marketplace, have confidence that your “safe money” products are about to become even stronger!

Strengthen your education on rising interest rates now and reap the benefits soon! (Again, just comment below if you’d like the article).

Make it a successful May. Retirees need your guidance and products now more than ever.