Why Now is the Time for Performance Trigger Strategies in a Volatile Market

As of this writing—Monday, April 21st, 2025—the markets are once again in the red. The S&P 500, NASDAQ, and Dow are all down roughly 3.5% across the board, continuing a trend we’ve seen throughout this year. Volatility has become the defining theme of 2025. One day we’re up, the next we’re down. And for clients—especially those nearing or in retirement—that’s more than a rollercoaster. It’s a threat to their peace of mind.

With all this uncertainty, you may hear hesitation from clients considering fixed indexed annuities. They might ask, “What’s the point of putting money in an FIA if the markets aren’t going to earn anything?” This is where your guidance and our solutions become critical.

Let’s start with the fundamentals. When a client purchases a fixed indexed annuity in today’s high interest rate environment, they’re locking in terms that reflect these stronger rates. This means better renewal rates throughout the life of the contract—whether that’s a 5-, 7-, or 10-year surrender period. Carriers are competing for business right now, and that competition is producing real value in terms of renewing FIA strategies at or close to the rate received when the client purchased the annuity.

But here’s, in my opinion, a unique opportunity to position FIA upside potential in a down market - Performance Trigger Strategies. For those who may need a refresher, these strategies credit a fixed interest rate—currently we have carriers crediting 8% or more—if the S&P 500 is positive at all during the contract period. We’re not talking about needing double-digit growth. If the index goes up by a single tick—just 0.01%—that’s enough to trigger the full credited rate. That’s the kind of efficiency and potential upside that’s hard to ignore, especially when downside risk is fully eliminated.

Think about what you’re offering:

• Upside potential without needing a bull market
• Strong fixed rates in a rising interest environment
• Zero market downside risk
• Safe, predictable growth and guaranteed income, often enhanced by income riders and doublers

And since we’re in Indiana—basketball country—let’s put it this way: It’s playoff season. And this right here? It’s the matchup. It’s brokers versus agents. Brokers and traditional investment advisors are telling clients to “ride it out,” “stay the course,” and “this is just a paper loss.” They often mention the 4% withdrawal rule – but I bet today they are advising clients’ to “take 3% this year … “ But we know the truth: for clients who are retired or close to it, losses—paper or not—can wreck a retirement plan. They simply can’t afford to wait and hope. They want guaranteed income and we can offer 5%, 6%+ withdrawal rates for income purposes.

​Periodic Reviews

Now is the time to get in front of your clients and prospects. Use the volatility as the reason to schedule review appointments. Reposition the conversation around safety, predictability, and income. Emphasize the power of protecting their income base, securing a reasonable rate of return, and knowing they have guaranteed income they can’t outlive—especially with options like income doublers for those who become chronically ill or need long-term care.

Clients aren’t looking for magic. They’re looking for a plan. They’re looking for confidence. And they’re looking for someone who can make sense of all this noise and give them a game plan they can count on. You’re not just an agent—you’re the hero in this story. You have the power to beat the broker, bring certainty into an uncertain world, and guide clients into the safe money places they need to be in.

Let us help. Call us today and let’s build a personalized marketing and outreach strategy so you can take full advantage of this moment. Let’s talk product selection, case design, email marketing, appointment setting, and more. You don’t have to do this alone.

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​Until Next Time – Good Selling! 

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