After the recent choppiness in the market, annual meetings with your clients for re-allocation can be difficult. Especially if there is a rider attached to their indexed annuity.
That annuity that we said would not lose money, may have decreased in value on the statement. We all know the income is safe and not affected by this. However, what the client sees on their statement is the starting balance and the ending balance less any rider fees. Explaining this can be difficult, because the client sees it in black and white.
When we set up the allocation, it is tempting to diversify in the markets with strong caps or par rates. They give your client the best upside potential long-term, and we all want what is best for our client. But, don’t forget an allocation to the fixed rate. Right now, fixed rates are at historical highs. Even if it’s enough to cover the rider expense, at least you will have a positive (on paper) return to show your client.
For more tips like this, please reach out by booking an appointment below.
That annuity that we said would not lose money, may have decreased in value on the statement. We all know the income is safe and not affected by this. However, what the client sees on their statement is the starting balance and the ending balance less any rider fees. Explaining this can be difficult, because the client sees it in black and white.
When we set up the allocation, it is tempting to diversify in the markets with strong caps or par rates. They give your client the best upside potential long-term, and we all want what is best for our client. But, don’t forget an allocation to the fixed rate. Right now, fixed rates are at historical highs. Even if it’s enough to cover the rider expense, at least you will have a positive (on paper) return to show your client.
For more tips like this, please reach out by booking an appointment below.
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