As annuity experts we have one of the most privileged positions in the retirement planning world. With the main focus on educating ourselves and then our prospects, we can find the right annuity for each client.
But your clients will have questions. When asked, these three “silver bullets” can help prevent much discomfort during the education process and ensure our clients and their families don’t experience disappointment years later.
Silver bullet #1
Ratings aren’t always “The Key”
When buying an indexed annuity, the rating of the company is often presented as the cure-all for any worry the consumer may have. When educating our clients and looking at potential annuities and the companies offering them, it is good to look at the rating of the company. But despite popular belief, an “A” rating might not bring all the security we might assume. As trusted advisors it’s our job to make sure our clients are in the best solution, and we’re there to educate them beyond the brochure. What is the company’s investment mix when we give them our client’s money? What has their average return looked like including the years of 2008 and 2009? How much do they have in reserves? Do we know where to get this type of information on the companies we are offering? We should be educated enough about these issues to discuss them with the consumers who rely on us.
Silver bullet #2
Know the terms