How To Sell Annuities Unintentionally In A Down Market

We spend a great deal of time with clients, educating them on how financial products work and what their investing and insurance options are. What is a stock, bond or mutual fund? How do insurance products really work? This process takes the most time, but the results are worth it. Better educated clients not only are comfortable with their decisions, but also not distracted by other peoples friendly suggestions.

Advice: Clients come to financial advisors because they are looking for a solution to their financial issues.

Imagine placing someone on your shoulders and carrying them through the rest of their lives. Heavy, isnt it? Yet in a sense, this is what we do for our clients when we make a commitment to help. We are committed to using our experience and education to help our clients meet their goals.

But, if we are going to take on that responsibility, we had better know what were talking about and back that up by giving our clients the advice they need to put their financial plans into action.

Having said this, we come to the point where we have to ask ourselves how we are going to get paid when we are offering so much time to our clients–time that does not automatically lead to a paycheck.

It comes down to referrals. The firm creates a culture that builds pride among those in the client base. The clients become so proud of doing business with us that they talk about us often. The best compliment you can receive from the prospect who, after being introduced, says, “So youre the one who has been so helpful to my friend or family member!”

An added benefit of this attention to culture is that every person in the firm is on the same page. The associates and assistants understand the ultimate goal of the firm, and this creates an attitude of success. That understanding is so deep that any member of the team can easily handle essential processes, and everyone feels he or she can accomplish personal goals as well.

To me, that is what building a business is all about. And if you do it well, yes, it leads to selling a lot of products and placing a large volume of assets under management.

To answer the original question about how I sell so many annuities in a down market, I would have to say that, in general, I spend so much time educating that the solution often presents itself to the client. I have placed a lot of assets in tax-deferred vehicles because it made sense.

Earlier this year, I was able to capitalize on higher fixed interest rates. Finding a good return in todays market is a challenge and, with competitive rates and the tax advantages, annuities became a good solution with many benefits.

, head of operations for the New Mexico offices of Olympus Financial Advisors, Albuquerque, N.M. He is a registered representative with Carillon Investments Inc., and The Union Central Life Insurance Company, Cincinnati, Ohio.

Reproduced from National Underwriter Life & Health/Financial Services Edition, October 3, 2003. Copyright 2003 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.