So, what does the short term and long term financial future hold in store for us and our clients? Bottom line…this is the United States of America. We are not a “third world country” and we will get this back. We always have …and we will. But, there is always a question of timing. So, if you will allow me, I would like to speak to you as a consumer, agent, agency owner, IMO and former Insurance company president that has developed markets all across the world. So, please take this in the spirit intended. I am not giving investment advice. And, if I had all the answers, people would be paying me to write this. Here we go.
The first thing you should do now is… call all of your clients and good prospects now…leave massages and speak to them, as opposed to writing a blanket email to all. As a consumer, I am sick to my stomach about the money I have lost the past 6 trading days. But, I am thankful that I don’t have any immediate or near term plans on retirement. Therefore, I will continue to buy low and ride the market back. But, what about the “Safe Money”? That is a different story. You need to spread the “good news” for all of your annuity and life clients. They did not lose a penny, and all past gains were protected from loss. Is this a great service that we are providing to Americans? The answer is the resounding yes.
What about you clients that want to wait this thing out, ride the market back up and then start the annuity? Nonsense… if they are in, or near retirement they need a “Safe Money” place. And, it is very important that we, as advisors and agents, present the best products to fit their needs. We have to give them complete information. Knowledge= power. The more the client knows…the better the decision making process.
Let’s put things in perspective. The market was due for a correction. The last correction ended in October 2011. Way overdue. Also, the market was down on Black Thursday 1987 by over 500 points. Big difference… that was a 20% decline. 500 points today is approximately 3%.Will the market recover? When? How much? Your guess is as good as mine. Are there products that we can present to keep our clients safe that are near or in retirement? The answer is yes. Which products? That is a good question.
As I said, I have been in about every chair in this business. I always want to do business with a company that is highly capitalized, is credible and has a history of treating clients fairly. Remember, the first year rates in an annuity have very little to do with the overall returns. Rates can change in the future. I take great pride in being able to read the statutory reports filed by the insurance companies. I also have the ability to look at a product and determine if the client has a great chance for long term success. I also have the experience to sniff out the products that are going to have to tank rates to make the desired profits. That is what we are here for. We have some products that we think are ones that need your consideration when speaking to prospects and clients. Give us a call if you would like us to point you toward what we consider, as the best products for this type of market.
Finally, keep on fighting the good fight. This financial time illuminates the reasoning that the Department of Labor has no clue as to the very important role we play in assisting the vast majority of Americans in the quest for a tranquil retirement. Good selling.