Annuities serve a distinct purpose, providing clients with multiple options for guaranteed, long-term income.
Clients are often interested in annuities, but temporary trends can lead them towards a product that doesn't suit them.
It's important for advisors to help their clients understand the full scope of their options, taking time to find the best-suited annuity based on the client's interests and situation.
Strategic planning and open lines of communication ensure clients get the most out of their products and help secure the advisor's position as a trusted, knowledgeable resource.
Gently Pushing Back
Amid ongoing market fluctuations, clients will seek extra financial security to protect themselves and their assets.
The added layer of anxiety from an uncertain market can increase clients' interest in trending products to align with what they've heard will be beneficial.
An advisor's voice of reason is crucial in this case, as aligning with what's trending can potentially cause more harm than good down the line.
Let's say a client is interested in a variable annuity because they read that people are getting great returns from their investments, but they want to avoid large fees and high risk.
Considering the extensive fees and risk potential that come with variable annuities, the response here can be difficult.
The advisor has to be understanding of the client's goals while also offering firm recommendations.
Advisors can fall victim to feeling like they have to say yes to every client request.
Providing clarity and expert-level guidance during these conversations is what highlights the true value of an advisor's service.
Using Your Resources
Being aware of trending topics while managing daily tasks can be difficult to balance, so advisors must find ways to stay ahead.
By connecting with other professionals in the field, advisors can learn which products they may eventually see their clients express interest in and new techniques to enhance their services.
Professional associations, like MDRT, are an easy way to interact with and gain insight from experienced advisors who can help one another advance.
For advisors, continuing education on various products and services is key to providing the best possible service.
Getting too comfortable in a specific position or knowledge level can potentially decrease client retention, as clients may look for an advisor who showcases their ability to adjust to ongoing market trends.
Taking advantage of educational opportunities, such as continuing education courses, or even clarifying conversations with wholesalers on product options, proves an advisor's dedication to quality service.
In an era of quick financial advice via social media and other online resources, one of the biggest differences an advisor can make is in their quality of service.
An interest in following trends is natural, but it's up to an advisor to decipher what's a fad and what will help clients meet and exceed their goals.
Setting aside time to learn more about client requests before providing advice or moving forward displays a deeper level of concern for clients' financial futures.
By offering tailored, timely financial advice around trending annuities, advisors can help clients gain long-term financial security.
Irene Stolte, ChFC, CLTC, LUTCF, is a financial advisor with Eagle Strategies LLC. She has been a Million Dollar Round Table member for 10 years and has earned Court of the Table status.
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