“Mailbox Money”

Presented by David Corwin

Living too long is a risk that many seniors are faced with today.  Studies show that a 65 year-old man has a 34% chance of living to age 90 and a 17% chance of making it to 95. A 65 year-old woman has a 44% chance of living to age 90 and a 23% chance of reaching 95.  These longer life spans present wonderful blessings, but difficult challenges with the real risk of running out of their savings they have worked a lifetime to create.

Annuities can provide a lifelong check directly to their “mailbox” to help mitigate the risk of running out of money. I can help you position one of the products below to best fit your client’s needs:

  • Single premium immediate annuity (SPIA) – this annuity offers an income for life or a certain period of time to be paid out.  Often a good fit to cover the time between retirement and social security payments (and other scenarios), but the client does give up “control” of the lump sum asset in return for a potentially larger payout than other types of annuities.
  • Fixed annuity – this annuity still gives the client 100% control over the asset, which means they can withdraw money as needed, but how long it lasts is dependent upon withdrawals and interest gained on the contract.  Generally speaking, 10% penalty free amounts are withdrawn so additional fees and charges aren’t incurred.  The drawback would be that income will not last for life, unless annuitized, which of course forces the annuitant to give up control of the asset.
  • Income rider – this is a rider that is available on most indexed annuities.  These seem to be the most popular because many contracts guarantee a future result. The client still has complete control of the asset while also knowing they can have “mailbox money” for life.

Please call David Corwin at 800-397-9999 and let me help you fit your client’s needs.

Fixed Index Annuities: Sales growing, products evolving!

Presented by Richard Mangiameli

For the first time, FIAs accounted for more than 50% of the market share for all annuity sales!

Not only did sales reach over $48 billion in 2014, they are also gaining popularity in the “Broker-Dealer” channel. FIAs totaled 10% of the total broker-dealer annuity sales in 2014, and broker-dealers expect that share to grow.

There are many financial planners who think that Fixed Index Annuities are the worst – too complicated and too many moving parts. It’s important that they take a closer look. FIAs are not complicated and there are not too many moving parts, and with the growth FIAs are having, they are not the worst things out there for your clients. FIAs just celebrated 20 years in the business, and they are here to stay. It would greatly help your business and your clients for you to learn and understand Fixed Index Annuities.

Here is how you can learn more – call an Independent Marketing Office (IMO) such as Financial Brokerage, who has been in the market for over two decades and works with several insurance companies who offer FIAs, and will give you a non-bias opinion.

Read this article for more information:

http://www.lifehealthpro.com/2015/07/23/fixed-index-annuities-sales-growing-products-evolv?eNL=55b2baff150ba06858c48520&utm_source=LHPro_Daily&utm_medium=EMC-Email_editorial&utm_campaign=07272015&_LID=98077815

Oops . . . forgot to waive 6.3 million in sales loads?

Presented by David Corwin

As we go further down the road in the financial services industry, which insurance only agents also find themselves classified in, I’ve been seeing some drastic differences. Even though, over an extended period of time, the differences seem to become harder to see.

In a recent article, I read that FINRA (Financial Industry Regulatory Authority Inc.), fined a broker/dealer for not waiving as much as 6.3 million dollars in sales loads for certain mutual fund shares, and other firms getting fined for similar offenses. Another example is a broker/dealer who was ordered to pay 11.7 million in fines and restitution for what it deemed “widespread supervisory failures” related to sales of certain complex products including variable annuities.

I speak with agents all the time, that happen to be neck deep in securities, and they ask my professional opinion on Equity indexed annuities so that they can understand and compare the differences. After the long discussion that I have explaining the main features and benefits of owning such a vehicle, they usually say “that’s way too complicated” and “how on earth could I sell such a product to anyone.” My typical response to that is asking them to explain the mortality and expense charges on variable annuity contracts, or explain why the fees on one of the myriad of sub accounts in the same asset class is drastically different than others. I go on to ask if they’ve read and understand the 569 page prospectus that they are to leave with the consumer after discussing, and ultimately selling, a variable annuity. The response sometimes, if not most of the time, is usually that I’ve made a good point and for me to send them more information.

If you’re reading this blog as a securities representative or an insurance only representative, you have to understand all annuities if you’re going to truly offer what the client desires to have.

Longevity Risk

Presented by Richard Mangiameli

Longevity risk is one of the primary concerns your clients will have in their retirement years.  You can show them how to both protect their retirement assets and generate lifetime income with a fixed indexed annuity. 

Fixed indexed annuities can address a multitude of issues, including:

1. Market volatility  

2. Longevity       

3. Health care cost  

4. Inflation  

5. Long-term care

Click here to read more on this topic:

http://www.lifehealthpro.com/2015/06/18/5-major-risks-to-a-clients-retirement-income?page_all=1

What’s Your Client’s Risk Tolerance?

risk-tolerance

Everyone has a different point of view when it comes to risk tolerance.  Over the years, I have found there are things that clients may need to make them comfortable when investing their hard earned money.  It always helps to have the following characteristics to persevere in the market place:

Patience = To be able to ride out the market and give it time to work properly.

Courage = To allow yourself to stay with your conviction of doing the right thing with your money.

Confidence= Knowing you have made the right choice!

Fixed annuities are a great fit in so many different situations and can give your clients tremendous confidence in their decision.  Call me today to discuss how you can give your clients the confidence they’ll need in their financial future.

Deb Strong, Annuity Sales Manager – 800.397.9999