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Is This a Great Time to Sell Annuities?

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With pessimism in Europe and volatility throughout the financial world, is this becoming a bullish market for annuity products? It’s something to think about and something to discuss with your clients.

What do senior clients want at this point in their financial lives? Security. Are the products you’re providing safe and secure compared to other products on the market? They should be.

I read a sobering market report last night that got me thinking on this topic. Titled the “Monex Global Retail Investor Survey, Vol. 5,” this report painted a pretty bleak picture of the financial markets. Clients of Tradestation Securities were surveyed for this report and they are downright squeamish about the financial world.

Let’s go inside the numbers to get a better picture of how these clients are feeling.

  • 74 percent are worried that the European debt crisis could result in a serious financial crisis.
  • 29 percent say that the European debt crisis is a factor in making their investment decisions–as opposed to 24 percent who say they will base their decisions on the strength of the U.S. economy.
  • More than half project that global equities will be down over the next three months.
  • 26 percent predict that global equities will remain flat over that time period.
  • 54 percent say that if President Obama is reelected, they will be more bearish (this number is up from 43 percent in March 2012).
  • 52 percent of respondents say they will have a more bullish investment outlook if Mitt Romney is elected—up from 39 percent of those surveyed in March 2012.

With so much investor uncertainty out there, it seems like a great time for annuity products to grow. I want to know what you think about that. In your conversations with clients what are you hearing regarding their investment priorities? Are you finding it easier to discuss the safety net of annuities? Write a comment below and let us know your thoughts on the matter.

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