What market conditions make for the best time to recommend indexed annuities to your clients? The easy answer would be anytime you’re in front of the client. However, a time of particular benefit, according to a recent conversation with advisors, is when the markets are volatile.
It makes sense when you think about it about it: Market volatility means a perfect storm for a flight to safe products. As I mentioned, we reached out to advisors recently to get their thoughts on their level of success with annuities during economically shaky times. Following are highlights from our conversation with advisors and how they’re communicating the benefits of safe products in the current environment.
Retirees and pre-retirees appreciate the safe, predictable returns and/or income of the indexed annuities.
A lot of people do not understand what indexed annuities are. When explained they seem to just want them as a safer haven.
Philip N. Raines
It’s good for people to understand that some return on their investments is better than no return or worse.
Clients are looking for a guarantee on their principal with options for higher return and better retirement protection.
Protecting principal is a high priority for the people I speak to.
We have experienced two extended periods of volatility in 12 years. Clients want predictability not splash.