5 Things You Could Do To Maximize Your Client’s Annuity and Bond Allocations.
Ron Bradley
Founder & CEO
Do you remember your first cellphone?
Mine was a heavy square box and could only receive and make phone calls. Today, a cell phone can control your vehicle, turn on the lights in your home, give you directions , and even help you avoid hazards on the golf course. There’s no question, technology has helped cellphones evolve to meet our changing needs.
The same is true with annuities. Having been in the industry for 48 years and sold them to a range of clients, I’ve seen the evolution of annuities firsthand. Annuities, like cellphones, had to change with advances in technology and the needs of retirement savers. With people living longer and pensions becoming something of the past, retirement planning has become essential. And annuities, which have added new features and eliminated others, have had an increased role in retirement portfolios since 1995.
Fast forward 25 years and the fixed indexed annuity has contributed $68.4 billion to American retirement plans.¹ And according to the National Association for Fixed Annuities, 99.994% of consumers who purchased fixed annuities are satisfied as evidenced by available compliance data. With over 9 million retirees entering retirement over the next five years, fixed indexed annuities will become a staple part of their allocation.
“Having been in the industry for 48 years and sold them to a range of clients, I’ve seen the evolution of annuities firsthand.”
The Fixed Indexed Annuity (FIA) – a new generation of annuities
I fell in love with FIAs for two reasons: protection of your investment and growth. There aren’t too many things guaranteed in life, but FIAs can guarantee your income. Plus, today’s fixed indexed annuities have no fee options, are uncapped, have participation rates as high as 180%, enjoy gains, and have income rider options and payout rates that increase every year. No longer is the passive index strategy restricted to the S&P 500 and EAFE index . Today FIAs use smart beta indices like Mozaic II and Zebra Edge to outperform benchmark indices. This is great for your clients because it provides an opportunity for modest growth over time.
The products are easier to understand and have features that today’s modern families demand.
Partnering with Auxani Advisors
Our fixed indexed annuities are from some of the highest ranked insurance carriers and financial institutions in the world. They consistently review their product offerings and partner with some of the greatest minds in finance to challenge the status quo. Annexus, one of our partners, share their access to market insights from some of the brightest minds on Wall Street. One of these financial leaders, Roger G. Ibbotson, PhD, discusses FIA’s as an alternative asset class in his white paper, “Fixed Indexed Annuities, Consider the Alternatives”.
Your choices when it comes to growing and protecting your clients’ retirement income will grow and selecting the right products and partnership will be more important than ever.5 Things You Could Do To Maximize Your Clients Annuity and Bond Allocations
- Reevaluate your client’s need for income protection. Take a look at new alternative asset classes that provide a guaranteed income stream, protect income, and possibly leave a legacy for loved ones.
- Make sure your clients aren’t still paying for features that are not being used.
- Review your book of dead assets (older income annuities and two-tiered annuities)
- Check the income and account values. The opportunity is in the divergence.
- Make sure your clients retirement income payments have the ability to increase.
You and your clients will have peace of mind
When you partner with Auxani Advisors, you’ll have access to the most innovative products from carriers that are leading the way in the industry. From educational webinars to the latest industry news from economic leaders, we’ll give you the tools for success. We can help provide your customers with the right products to protect and grow their wealth. Call us today at 800-446-2649 and ask for Ron Bradley or Ryan Griffin.
¹https://www.investmentnews.com/whats-driving-growth-in-the-fixed-indexed-annuity-market-81435
