August is here already and so are some strong short-term fixed-indexed annuity (FIA) products that can be utilized in place of a CD or MYGA. Due to several factors – not the least of which is the inverted yield curve – carriers are able to issue short-term FIA contracts with solid rates.
With MYGA rates around hovering the 5% (ish) range, why not present clients with the opportunity to utilize a fixed account during year one that is at (or near) what a five-year MYGA is yielding? Or perhaps try a blend of fixed account and a high-cap S&P 500 annual point-to-point strategy. With today’s rates it is hard to miss on an FIA.
Here are a few examples …
Example One:
5 Year FIA with 7% commission, 140% participation on an annual point to point volatility-controlled index, 4.50% fixed account.
Example Two:
5 Year FIA with 3% commission, 11% S&P 500 annual cap, 5.25% fixed account and 150% participation on an annual point-to-point volatility-controlled index.
As you can see, not only can these five-year FIA products help your clients accumulate better than a MYGA or CD, they also pay a fair commission to the agent. We can help navigate the annuity universe and have the best service/back-office in the industry. These short-term rates cannot last forever, so my advice is to take advantage of them now before the winds of change sweep through the interest rate environment.
If you are looking for sales ideas or strategies to combat your MYGA woes, schedule a call with one of our team members, call us at (877) 844-0900, or e-mail us at [email protected].
With MYGA rates around hovering the 5% (ish) range, why not present clients with the opportunity to utilize a fixed account during year one that is at (or near) what a five-year MYGA is yielding? Or perhaps try a blend of fixed account and a high-cap S&P 500 annual point-to-point strategy. With today’s rates it is hard to miss on an FIA.
Here are a few examples …
Example One:
5 Year FIA with 7% commission, 140% participation on an annual point to point volatility-controlled index, 4.50% fixed account.
Example Two:
5 Year FIA with 3% commission, 11% S&P 500 annual cap, 5.25% fixed account and 150% participation on an annual point-to-point volatility-controlled index.
As you can see, not only can these five-year FIA products help your clients accumulate better than a MYGA or CD, they also pay a fair commission to the agent. We can help navigate the annuity universe and have the best service/back-office in the industry. These short-term rates cannot last forever, so my advice is to take advantage of them now before the winds of change sweep through the interest rate environment.
If you are looking for sales ideas or strategies to combat your MYGA woes, schedule a call with one of our team members, call us at (877) 844-0900, or e-mail us at [email protected].
 | Until next time… good selling! Joseph R. Ohlson, LUTCF Vice President The Ohlson Group 1-877-844-0900 |
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