There was an interesting article in the Monday, February 8,2021 Wall Street Journal.  It was written by Neal Templin and titled “The case for replacing some bonds with annuities.” Please allow me to quote the first paragraph of this article (you can find this article on page R-1).  “If you want to maximize how much you can safely spend in retirement, some economists say, sell some of your bonds and buy lifetime income annuities.”  Again, as I so often say, I am not giving investment advice.  I am just pointing to the conversations going on all over America about the need for a guaranteed lifetime stream of income. The article also reminds us that Social Security is itself an inflation adjusted income annuity.  

The needs of Americans are so clear, and the products we offer can solve many of the concerns.  Okay, I realize that there is not the upside potential of the equity markets. I also understand that interest rates are lower than they were compared to past years.  But, I also say… compared to what?  The 30 year treasury, as I write this, is under 2%.  The 10 year is under 1.25%. What are your local banks paying on CD’s?  These are questions and topics to discuss with you clients and prospects.

I believe that all of this goes back to a consultative approach with our clients.  Dividing up essential and discretionary income needs is so important.  Then, ask you client what they want and need?  There are a lot of choices in our insured products portfolios.  Sure, the lifetime income annuity is one way to go.  But, what about the fixed index annuity with a lifetime income provision?  I have been in this business for quite some time - as an MDRT member, career agency head, president of a couple of life insurance companies and now owning, along with my sons, an Insurance Marketing Organization.  I believe that one of the reasons our digital annuity lead program is so strong is that we give examples of lifetime income payments based on when the prospect wants and needs the money.  

I have always said that we can tell the client, just tell me how much you need, when you need it and we will tell you how much money to place in our product to give you the guaranteed flow of income… FOR LIFE that you need.  So, I believe that we are in the best place ever.  Our products are needed and desired.  We just have to ask questions and tell the story.  

​Need help in the approach?  Give the office a call and line up a 15 minute virtual appointment or phone call and you will see why financial pros across the country continue to refer to us as… a different experience.

Markets go up… and markets go down.  I have always been in the market, but always had a lot of time to make up for losses.  I, like many of our clients, don’t have an extra 20 years prior to needing to take income out of our portfolios. I had a quarterly review with my financial advisor and we spoke about the next downturn. We spoke, and guessed, when it would happen.  He advised me to be prepared for a downturn of 10-20%.  But, he advised me not to worry and hang in their as I always have.  In the past, this approach had me recover all losses and get great gains. But, I am not an idiot (you might disagree) and my wife and I put more money in an index annuity last fall.  I am also going to be taking some additional money off the table now and do the same.  It might be a good thing to discuss with your clients and prospects.  Let’s look at the pre, and current, retiree concerns.

Okay, it is all about income. Sure, some of the really “big boys” don’t have a worry at all. But most want an income that they can’t outlive and one that will keep them in the world that they have become accustomed to.  Also, taxes… will they go up?  I would let you be the judge. What about the need for some long term care type of situation.  Maybe some house care, maybe assisted living? Depending where you live, we are looking at $5000-$10000 per month. I can verify these numbers as I handle my mom’s finances. What about wanting more interest on their CD emergency money?  Not the banks… that’s for sure.  So how about a MYGA?

Ladies and gentlemen, we have the products, and the world wants what we offer.  Need help in attracting these types of prospects?  Look no further than the Ohlson Group and Safe Money Places Agent Network.  We have the digital lead program and people are responding every day. Give us a call and find out why agents from coast to coast continue to refer to us as…  a different experience.