Last Call!

With the Fed already making interest rate cuts and many annuity carriers announcing rate decreases, this may be the last call, as they say, for this era of high annuity rates. Some of the clients you work with understand this. But some may need a healthy dose of fear. That healthy dose of fear is the uncertain interest rate environment, the uncertain geopolitical environment and ultimately the equities market in general.

Talk with your clients and ask the hard questions – “If we have a 2008 or COVID type situation happen tomorrow, how much of your nest egg could you afford to lose?”

We all remember the days of the low-interest rate environment and the “new normal” that we had to endure from around 2009 all the way up till around 2022. We are getting normalized now to this high-interest rate environment, and so I wanted to remind all who are reading this that today's lowest FIA S&P 500 cap rate is likely higher than the highest S&P 500 cap rate just five years ago.

The great news is we still have S&P 500 caps over 10%, premium bonuses on 10-year surrender FIAs over 10%. And on top of that, income riders with high payouts and competitive features like income doublers for chronic illness events - with many carriers offering the income doubler on a joint basis, not just on single payouts.

As we enter this fall season, it's a time that I like to call separation season. While many agents fall into the trap of thinking that after Thanksgiving, the selling season is over, in my humble opinion, this is a mistake!
We see our biggest producers, in most cases, have their biggest months in November and December. One big factor might be that they're available and working. I'm not against taking vacations and time off - far from it! Family, faith, loving your friends and family are the most important things in life.

However, when this separation season occurs, I tend to think about professional athletes like Kobe Bryant. Kobe Bryant was one of the most gifted athletes ever born and he could have had a great career even if he didn't give it his all every day. But instead of coasting on his talents, Kobe was always the first in the gym and the last to leave the gym, setting a tone for all his teammates.

But Kobe wasn't doing it for his teammates, he was doing it because he knew other NBA players weren't working as hard as he was. And, in the back of his mind he knew there were other players working just as hard as him. It motivated him out to the point of working even harder, to be the best Kobe possible.

So go out and be brave. Have confidence in yourself and the products you sell. And at the end of the day, you can know that you’re not only helping your clients secure a safe financial future, but you are also helping the most important people in the world - your family.

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​Until Next Time – Good Selling! 

​Joseph R. Ohlson LUTCF
President
1-877-844-0900
[email protected]