As a broker, you are poised to profoundly affect your client’s financial decisions by bringing them sound advice and recommending the best vehicles for their hard-earned retirement dollars.
Many brokers have found that recommending a fixed annuity can help clients gain an advantage and maintain peace of mind leading up to and during retirement.
Many potential purchasers are unaware of the benefits of a fixed annuity purchase.
Consider the following misconceptions clients often have, and learn how you can help inform them about how an annuity can actually help them realize their objectives for retirement or financial planning for beneficiaries.
Misconception No. 1: Why should I invest in an annuity when I can possibly make more elsewhere?
The 2008 market downturn created uncertainty about where and how to invest retirement dollars. Investors learned that market changes don’t always mean big returns, and as such, have developed a lower tolerance for risk. This, coupled with the fact that people are living longer and need to rely on retirement income for a longer period of time, makes considerations about where to store or invest retirement dollars increasingly important.
Because of this aversion to risk, many clients have found a fixed annuity purchase can help enhance their investment goals. Fixed annuities provide a guaranteed rate of return and are a practical option for investors who don’t want to gamble with money they’ve worked hard to accumulate for retirement. A deferred annuity enables workers to accumulate savings on a tax-deferred basis, until it’s distributed.
When broaching this subject with clients, brokers should talk through how an annuity can help a client accumulate savings, but in a way that protects their initial investment while still accruing additional funds.