But, life can be very long. And, for some, that could become a problem. Longevity is one of the greatest challenges people have when looking at their retirement income plans. We might just live longer than the actuarial tables predicted. This, according to many surveys, is a leading concern for financial professionals when planning for their clients retirement.
For those in the investment arena, they try to have a good balance of conservative investment, while keeping some equity stocks in the portfolio to preserve the capital growth. Some pros will use bonds to take care of essential expenses. You know… the home, the loans, the utilities, etc. But, sometimes life gets in the way. And, there are some circumstances beyond our control that can derail the plan. A good example could be geopolitical events that could shatter or upset financial markets.
So, what about the client that does not want to take any chances? The one that just wants the guarantee? Well, the answer is obvious.
Annuities with income options can provide clients with the income that they can never outlive, and peace of mind knowing that they can plan for their lives... no matter how long that they live. There can be other factors like a chronic illness, or a long term care event. Well, don't we have those products and riders as well? Of course we do.
You know, as I have said many times, I am sort of like a financial magician. "Tell me what you need and when you need it. I will give you the exact amount of money you should deploy in this annuity, and I will make it happen." What a great profession to be in. No, we will not be hitting financial home runs when you look at rates of return. But, our Safe Money Instruments will usually (historically) provide a rate of return that exceeds most other Safe Money Places.
Keep it simple, explain our products and let people sleep at night. Because remember, life "could” be very long.