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!
Qualified Longevity Annuity Contracts
By David Corwin, Annuity Sales Manager Many agents have yet to hear about QLACs, but most certainly many of their older clients need to be made aware. QLACs can be a key piece to proper retirement planning and can help clients facing Required Minimum Distributions (RMDs) from their qualified retirement accounts and the associated taxes that go with those distributions. QLACs are purchased within a traditional retirement plan and the annuity payments are deferred until the client is much older (they must begin payments the month following the month in which the client reaches age 85) and the value of the QLAC is excluded from RMDs and until payments begin. Some benefits include:- Potentially reduce taxes
- Lessen your RMDs
- Plan for future income
- Spousal and non-spousal benefits
- Protect your principal
- Add a COLA
- No annual fees
- Contractual guarantees only
- Laddering income
- No indexed or variables allowed
- Compliments Social Security
- Indexed to inflation
- Only the big carriers play