Offer Clients Annuities

What You Need to Know

  • Gauging a client’s appetite for risk is key.
  • The possibility of market volatility is always there.
  • Fixed indexed annuities don’t lose money for the holder just because interest rates fall.

Annuities offer retirees the chance to obtain tax-deferred growth and guaranteed income in retirement, and annuities should always be part of a retirement and income specialist’s tool kit.

If you frequently sell annuities yourself, you know that.

But, amazingly, many advisors don’t discuss annuity products with their pre-retiree clients. For some, it’s because they have become so immersed in the accumulation phase of financial planning that they’ve developed only superficial knowledge of safe money products and best practices.

Others fear pushback from clients who have exposure to annuity myths and negative press. These planners may be reluctant to take the time and effort needed to re-educate clients about annuities’ many benefits.

However, it could be that advisors who don’t consider annuities, particularly fixed-indexed annuities, as part of a sound retirement and income strategy are doing their prospects and clients a disservice.

A Strategy Shift

Successful financial advisors understand that the days of selling a product and never seeing that client again are long gone.

Instead, retirement planning has morphed into more of a full-service concierge model. Today’s advisors must carefully monitor their clients, turn on income riders at the correct times, and ensure cash flow is available when the retiree needs it.

As you clarify your clients’ goals and help them discover a comprehensive roadmap to help attain those goals, you must provide for the possibility (inevitability?) of market volatility. Depending, of course, on a client’s appetite for risk, you should actively adjust their portfolio to make it feel more reliable and safer to them.

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