How many meetings with widows will it take before you fully grasp the power of guaranteed income annuities in a retirement income plan?
I am yet to meet with a widowed woman who asked me what the rate of return is on the annuities in place after the death of her husband.
When she asks me if she is going to be okay, and I share with her that she will receive guaranteed checks each month for the rest of her life, does she question whether the index crediting method is annual point-to-point or if the variable subaccounts will be rebalanced annually?
Instead, she reaches for a tissue and wipes the tears from her eyes in a way that keeps her mascara intact. She looks as frail as she ever has and in the same moment breathes a sigh of relief as she allows herself to begin the mourning process, free of the financial worry that had gripped her heart and mind since the moments following his unexpected passing.
As advisors, we should absolutely debate the effects of interest rates on various income planning strategies.