Q & A For Annuity Producers In Uncertain Times
Q: When you say, “clients should diversify their portfolio,” what does that mean?
A: All products have a meaning and reason for being in a portfolio. For instance, I use VAs for long-term growth and protection, and stocks and mutual funds for growth and liquidity. I also urge clients to use asset allocation and rebalancing plans, and to stick to their plans unless needs change.
–Ann Fenwick, Baltimore, Md.
What Your Peers Are Reading
Q: What if my client tells me he cant sleep at night, even though weve done the needs analysis, risk assessment, asset allocation, portfolio diversification, and related planning? What can I say to this client?
A: I tell these clients that “if you cant sleep at night, we might want to change things, because your holdings may have become too risky for you.” But I also explain the pros and cons of making changes.
–Gregory Skrabonja, Franklin Lakes, N.J.
Q: Which types of surrender charges do you recommend for this periodlong-term (10 years and up) or shorter?