Annuities: A Top Pick


Annuities: A Top Pick

The nature of my job dictates that I spend a lot of time in my car. When I’m driving, I’m typically either talking on my phone or listening to sports radio on ESPN. Not too long ago, one of my favorite sports show hosts was talking about the NFL draft and how difficult it is for franchises to select the best possible college player for their top draft pick. In college football, there’s an abundance of talented athletes who look very promising; however, it’s almost impossible to know for sure if their talent will translate into success in the NFL.

The commenter said selecting a draft pick is exactly like selecting a financial advisor: Regardless of who your advisor is, you would’ve made money over the last two years …  You won’t know if you have a great advisor until you see what they do in a difficult environment.

Consider this: On Jan. 5, 2015, the S&P 500 closed at $2,020.58, and just two years ago on Jan. 4, 2013, the S&P 500 closed at $1,466.67 – the index is up 38 percent and near an all-time high. 

Despite all the market success, all of the studies we’re seeing point towards the fact that many near-retirees are ready to take some of their “winnings” off the table and “lock in” in their gains. A recent study stated that 86 percent of baby boomers surveyed wanted help protecting a portion of their retirement assets. This same study showed that more than 50 percent of those surveyed formed their opinions of annuities more than 10 years ago … so they may not realize an annuity could give them exactly what they are looking for.  

We need to spread the word: Indexed annuities are an attractive option today with more, and better, features than they’ve ever had before. As you’re sitting with your clients, reviewing their portfolios’ performance this past year, ask about their sentiments of the equity market moving forward, and broach the subject of locking in a portion of their gains.  

The Bottom Line: Show your clients that you can help them succeed in a difficult environment … show them you won’t disappoint them as their top draft pick. The annuity team at Ash Brokerage would be thrilled to be YOUR top pick to discuss your clients’ situations and help identify the best annuity solutions.