For financially conservative investors who want to build and protect their assets, fixed annuities are a great option. With many investors scarred from losing money in the recent economic downturn, clients are interested in a vehicle that has a guaranteed minimum rate of return. That is one of the reasons why the fixed annuities industry is seeing strong sales growth.
As always, when positioning an annuity purchase, it’s important to understand your clients’ needs. Fixed deferred annuities can provide a predictable future with flexible payout options that offer a guaranteed income stream, and those earnings aren’t taxed until the funds are used.
This is especially appealing for clients interested in using a fixed annuity as a tool to secure income for retirement, as a deferred indexed annuity can be “turned on” before or after retirement to create a liquid stream of income. How many investments do you know of — other than a fixed annuity — that can provide a predictable and guaranteed stream of income?
Certainly, there are a lot of great reasons for your clients to buy a fixed annuity. Are you positioning these benefits in your sales conversations?
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Fixed annuities can ensure that if anything should happen to one of your clients, the surviving spouse has a source of continued income in place.
This can help in case of a catastrophic illness or if a client (or spouse) would need to enter a nursing home.
Today’s challenging economy has heightened interest in liquidity.
Many clients may hesitate to make long-term financial commitments without flexibility and access to their funds, including creating an income stream should they need it.