I have been writing Thanksgiving articles and commentaries for a long time. Every year, I try to find a different approach. I worry that everyone reads the same old words from everyone else, and that it may start to sound mechanical. But, I’m not sure what else to say, other than THANKS SO MUCH for the opportunity of working with all of you for these many years. Some of you may be new advisors to The Ohlson Group/Safe Money Places family. But, many of you have worked with us for more years than we want to admit. We know each-other’s spouses, kids, and have socialized together. That’s what really makes these relationships special. And, I’m confident that these relationships will continue with my two sons, Nick and Joe.
 
This family-owned boutique firm has many great years ahead of us. But we know that we are “running for office” every day, and can’t take your “vote” for granted. We have to earn the vote. We have been earning your vote since 1975, when I first opened Ohlson and Associates. So, you know that I have to also be thankful for this unbelievable staff. And, I am so thankful to be in the greatest business in the world. Sure, we have challenges, but what other industry doesn’t? Think about it… we have a shrinking sales force, and a growing market in need of our services. My friends in the real estate, flooring, and automobile businesses wished they had this situation. So, I guess another thing to be thankful for.
 
In closing, I think that we all know that we should be most thankful for our families, our health and our friends. Let’s also not forget to be thankful for living in the greatest country in the world. I hope that you will have a happy, safe and healthy Thanksgiving. I hope that you know, that we are thankful to be working with you.

Until Next Time ... Good Selling!
Raymond J. Ohlson, CLU, CRC
President and CEO of The Ohlson Group
​

Okay, if you don’t really know what I am referring to, you are not alone.  DIA stands for Deferred Income Annuity.  It is really just the reverse of a SPIA - a single premium immediate annuity. As you know, that SPIA needs to have payments made within 12 months…hence the word “immediate”.  But, there is a new game in town.  Well, let me back up, not new… but new to most. Let’s look at how these DIA’s work.
 
The DIA is also referred to as a “longevity” annuity.  It’s pretty simple: your client gives the insurance company a lump sum of money. The client then picks the date when they want income to be paid.  That date is usually 10, 15 or 20 years down the road.  Five years is the minimum and doesn’t show as well.  

So, what’s the big deal? Let’s look.
Since the insurance company knows how long they will have the money…the payouts are better. In most cases, they payouts are significantly better than FIA’s or SPIAS when it comes to payouts.  

So, what is the downside? Let ‘s take a look.
In return for the better payout, there is virtually no liquidity when the money is tied up.  That is why the sales have usually gone to the well heeled.  

So, is a DIA good for your clients? 
That is what I am asking you. We are considering a major expansion into this product line but need your feedback in order to make a final decision…

• Do you sell them now?
• Who do you sell them through?
• Who is your typical buyer?
• What are your thoughts on this product?

 
There is more to a DIA, and this is just a thumbnail sketch.  But we would love to hear your thoughts. If you get a chance, please us ask a question, leave a comment, and provide us with any feedback.

Your feedback will help us make a decision to help better serve your needs. We will respond to any comments as soon as we get a chance to review. Thank you for your cooperation!
 
Until Next Time…Good Selling!
 
Raymond J. Ohlson, CLU, CRC
President & CEO
The Ohlson Group, Inc.

Interest rates will probably get a boost from the Fed.
The jobs report was released Friday, 11/6 and the numbers were much stronger than anyone thought. The labor participation rate improved, dropping the unemployment rate down to 5%. That is the lowest rate since 2008. On top of that, there was a modest increase in wage growth, which resulted in a boost on the productivity report released this week.

​So, what does that mean to us in the life and annuity business? Some companies that have overreached on interest rates are going to get a break. The 10 year is increasing, and the companies will get closer to their desired spread. This will give the companies that have met their spread target a chance to raise rates, and get a jump on the competition.
 
So, what about mortality?
The actuarial tables have been changed. Guess what they found out? People are living even longer than they had thought. How is that going to affect us? The payout factors on lifetime income riders will be changed – this is definite. The payout factors will be reduced (if they haven’t already). So, what is the takeaway? It’s time to get your prospects to act now as the payout factors, and the income payout will be reduced after the first of the year.
 
Volatility…WOW… it is here, as there is still uncertainty in the market.
In order to protect your client and the company, most carriers have adopted volatility controls in their fixed index annuities. So, how are you explaining that to your prospects and clients? If you’re not sure, here is the takeaway: go to www.volcontrol.com for info on most volatility control indices, along with explanations.