FIAs: The Smart Alternative to CDs and Bonds

In today’s uncertain economic environment, many advisors are rethinking the traditional 60/40 portfolio rule, which historically called for 60% equities and 40% bonds. As rates fluctuate and bond volatility increases, more and more professionals are replacing a portion — or even all — of that 40% bond allocation with fixed index annuities (FIAs).

And for good reason.

FIAs can be a powerful solution for conservative clients — especially those currently in CDs or bond-heavy portfolios. Consider this: the average 5-year CD rate right now is only 1.72%, and even some of the most aggressive banks are only offering up to 4.28%. Sure, a handful of money market accounts are touting 5% rates, but none of those options provide the tax deferral, upside potential, or guaranteed income features that an FIA can.

We currently offer a suite of 5-year FIAs that not only provide competitive growth potential, but also lock in participation rates for the life of the contract. That means no surprises when your client opens up that renewal statement — what you promised on day one is exactly what they’ll see moving forward. And if you’re looking for growth? Some of these 5-year FIAs are offering double-digit S&P 500 cap rates.

But it doesn’t stop there.

By simply presenting FIAs as a CD or bond alternative, you may uncover deeper concerns your client has — such as fears about outliving their money, future health care costs, or income in retirement. FIAs with lifetime income riders can provide guaranteed income for life, and many include enhanced payout options if your client becomes chronically ill or enters a nursing facility.

Whether it’s a 5-, 7-, or 10-year FIA, keep these products front of mind the next time a client says they’re “happy” with their CD, or their advisor insists bonds are the best safe money play. Show them there’s a better, safer, more reliable alternative.

Because that’s what we do — we’re Safe Money Places agents. We’re proud members of the Safe Money Places Agent Network. 

On that note - give The Ohlson Group a call to get set up with your free agent website and to inquire about lead availability in your territory. And connect you with the best back-office support and most experienced marketers in the industry.

Let’s show our clients that safe doesn’t mean settling — it means strategy, structure, and security.

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​Until Next Time – Good Selling!
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​​Joseph R. Ohlson LUTCF
President
1-877-844-0900
[email protected]