The Fixed Income Solution
That Is Disrupting The Retirement Industry.
Uncertain Times
As more and more retirees are looking for the best fixed income solution, a quiet disruptor has been gaining momentum since 2019.¹
And, this alternative asset class has been supported by finance legends and academic thought leaders Roger Ibbotson, Jeremy Seigel, and Robert Shiller. In fact, Roger Ibbotson has written a white paper comparing fixed income options in retirement plans. You can download his paper here.
The year 2020 has been plagued with uncertainty with COVID-19 and the election. This year has been challenging in that it’s the year of firsts. First time wearing a mask everywhere you go, staying in, cancelling activities and learning remotely. Those approaching retirement watch the radical volatility of the market with concern.
You are doing your best to reach out to your clients, figure out zoom, and reassure them that they will be ok because of their planning. Now we need to execute the last part of the plan with clients approaching or in retirement with current market volatility and uncertainty.
¹Insured Retirement Institute; State of the Insured Retirement Industry 2019 Review and 2020 Outlook, pp 3, 2/2020.
The Fixed Income Solution
Then you look at their fixed income part of their retirement portfolio. The 10- Year Treasury rate of .74% which is a change of -57.71% from last year isn’t helping.2 Either is the current CD, Money Market or other fixed income options. What will you do to preserve their wealth and generate lifetime income?
Now is the time to move out of low performing asset classes and give your clients peace of mind. Our products will help to protect against downside market risks while providing lifetime income your clients won’t outlive.
2https://ycharts.com/indicators/10_year_treasury_rate
Changes in the Annuity Industry
Did you know that fixed indexed annuities comprised 30% of the annuity market in 2019 and are projected to be the fastest growing annuity in 2020?3 No longer the days of complicated fees, confusing terms and limitations. Today, fixed indexed annuities use artificial intelligence and machine learning to maximize earnings for clients and minimize costs. The industry has evolved to meet the demands of technology driven customers who expect more from fixed income options.
In a recent Guaranteed Lifetime Income Study (GLIS) by Greenwald & Associates in 2019, consumers believed that having an annuity as part of their overall retirement plan was valuable.
Evaluation of a Floor Strategy That Includes Lifetime Income
Consumers Value Guaranteed Income in Addition to Social Security
Best Reason to Buy Guaranteed Lifetime Income
3Insured Retirement Institute; State of the Insured Retirement Industry 2019 Review and 2020 Outlook, pp 3, 2/2020.
Stronger Partnerships
Through our partnership with Annexus, our variety of fixed indexed annuities have features that may change the way clients feel about annuities. They are designed to put more money in your client’s pockets and provide lifetime income that cannot be outlived.
No Interest Caps
As the index performs, your client’s earnings are uncapped and earnings can increase with our higher participation rates.
Lifetime Income
Ability to earn lifetime income your clients can’t outlive.
Higher Participation Rates
The higher the participation rates, the potential for higher returns.⁴
Penalty Free Withdrawals
Withdraw 5% after the first day and after the first year up to 10% for client liquidity.
⁴Interest credits are based on any positive percentage change in the selected indexes from the beginning to the end of the Strategy Term Period, subject to a Participation Rate. For example, if the applicable index increases by 5% and a 140% Participation Rate is applied, the interest credited would be 7%. There is no “cap” placed on the interest that may be credited under the Strategy Options.
Auxani Advisors Can Provide the Solution
Let us show you how our products can help your clients preserve their wealth during these uncertain times. With rates forecasted to be the lowest over the next 5 years, your clients will have an opportunity to protect their principle and generate lifetime income they can’t outlive while participating in the upside performance of the market.
And yes, just like buying a car, your clients have options and choices to make. The fixed indexed annuity can meet their unique needs and to potentially help keep more money in your client’s pocket.
Auxani Advisors is here to help you meet the needs of your clients. Call us today at 800-446-2649 and we’ll start the conversation. Let us show you how to protect and grow your client’s wealth as they enter and approach retirement.
Ryan GriffinDirector of Advisor Consulting978-605-1174
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Disclosure:
*Rate provided as of 8.6.2020 from https://www.cnbc.com/quotes/?symbol=US10Y.
FOR REGISTERED REPRESENTATIVE USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION PURPOSES.
Guarantees apply to certain insurance and annuity products and are backed by the issuing insurance companies claims paying ability and financial strength. Guarantees are subject to product terms, exclusions and limitations. Clients should be instructed to read their contracts carefully.Deferred Income Annuity contracts are irrevocable, have no cash surrender value and no withdrawals are permitted prior to the income start date.A contract’s financial guarantees are subject to the claims-paying ability of the issuing insurance company.Insurance products are not FDIC insured or guaranteed, may lose value, and have no bank guarantee.
