Sixty-five years old: Does the idea of any other age cause more cold sweats and sleepless nights?
Cruises to faraway places? Forget it – the reality is that clients nearing retirement age wake up at 3 a.m. with just one thought kicking around in their heads – reliability of income (ROI). That’s what the fear of 65 boils down to: not having a reliable source of guaranteed income in retirement. Insurance advisors must help dispel this fear, or run the risk of losing clients to CDs or advisors who know about more than just accumulation.
One popular ROI strategy is the split annuity, which involves simultaneously purchasing two annuities to provide current income and preserve capital.
But here’s the problem: The way the split usually works tends to confuse people.
What Your Peers Are Reading
Simplify the split
Stop 50 people on the street and ask them to define “split.” I’d bet not one of them would say, “It’s when you divide something by one-third and two-thirds,” yet that’s the definition we expect clients to accept when we talk about splitting an annuity. No wonder they’re confused: A “split” to most people means 50/50.