Strategies For A Safe-Money Marketplace

Be a mentor: My role is not to please clients but to guide them, using facts and information to temper their over-enthusiasm and to and to develop understanding so they dont become overly fearful.
–Gerald Butrimovitz, Associated Securities Corp, San Francisco.

Address peace of mind issues. Note that although the newer VAs charge a fee for their living benefits guarantees, that fee buys peace of mind “like your homeowners insurance does.”
–Peter Hill, Vision Financial Group, Des Moines, Iowa

Respect the tenor of the times: Remember that, in uncertain times, people become gun-shy, and they want guarantees.
–William Lowe, ING, Des Moines, Iowa

Bring up tax-deferral: For instance, if the client is not ready to retire and wont need the money for a long while, ask, “why not get tax deferral–and a better rate, too–by putting the money into an annuity?”
–Donald Davis, Personalized Brokerage Services, Topeka, Kan.

Address liquidity: Some people hesitate about the loss of liquidity annuities entail. So point out the free withdrawal provisions, nursing home waivers, and other liquidity features than can meet some of the need.
–Daniel Mulheran, Town & Country Financial, Inc., Minneapolis.

Present seminars: At banks, these have become a very popular means of educating customers about annuities as well as interest and other financial matters.
–James Loveridge, IFS, Cincinnati

Apply selective investing: For clients who want to invest in the market, consider dollar cost averaging and investing where valuations are in the normal to below normal range.
–Gerald Butrimovitz, Associated Securities Corp, San Francisco.

Point out the floors: If customer still wants to invest but also wants some guarantees, point out that the hottest-selling VAs right now have a floor built in “so you dont have to die to be made whole.”
–Donald Davis, Personalized Brokerage Services, Topeka, Kan.

Instead of bond funds, consider FAs: To customers who are talking bonds, which are interest rate sensitive, suggest they also consider a fixed annuitythe kind that guarantees the rate for several years.
–Peter Hill, Vision Financial Group, Des Moines, Iowa

See the opportunities: Potential new customers are coming from the self-help investors who got burned in the market last year and also from those who had poor guidance in the past.
–Daniel Mulheran, Town & Country Financial, Inc., Minneapolis.


Reproduced from National Underwriter Life & Health/Financial Services Edition, February 4, 2002. Copyright 2002 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.


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