Are Your Clients Losing Sleep Over Their Portfolio?

Presented by Deb Strong, Annuity Sales Manager

Will Rogers famously said “I am not so much concerned with the return on capital as I am with the return of capital.”  See the hypothetical example below that you can share with your clients comparing stock market fluctuations with a fixed annuity, which helps them to understand the true value of what we can offer.

 

When evaluating and comparing retirement products and their most visible features, it is easy to lose sight of the most compelling benefit offered by fixed annuities – their stability.  It is difficult to overstate the advantage of being able to enjoy the peace of mind that comes with knowing your nest egg is not vulnerable to market volatility. Let’s look at an example. First, we have a volatile market with returns of 7% for the first two years, then a downturn with a 7% loss in the third year.

END YEAR

HYPOTHETICAL RETURN

YEAR-END VALUE

$100,000

1

7%

$107,000

2

7%

$114,490

3

-7%

$106.475

 Next we have a fixed annuity with a fixed rate of 2.25%.

END YEAR

HYPOTHETICAL YIELD

YEAR-END VALUE

$100,000

1

2.25%

$102,250

2

2.25%

$104,551

3

2.25%

$106,903

The fixed annuity has a higher accumulation value over the three year period!  The example clearly shows the powerful force of stability offered by fixed annuities.  Call me today at 800.397.9999 to learn more!

 

 

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