Stock market performance just had its worst six months in 50 years, leaving investors wondering about the future of their hard-earned dollars. These markets trigger investors to “flight to safety,” finding more comfort in cash savings, CDs, and annuities.
For investors preparing for retirement, advisors may want to consider helping their clients focus on annuities, specifically fixed indexed annuities (FIAs), for the following reasons:
- Clients investing for retirement can lock in profits from the last 10 years and preserve them in an FIA that won’t lose any value.
- FIAs allow clients to participate in a portion of stock market gains with no downside risk.
- FIAs can be an ideal replacement for fixed-income investments that haven’t been performing well with rising interest rates.
- FIAs allow clients to allocate funds to a guaranteed account yielding around 4% to ensure positive returns in down market years.
- Some FIAs offer flexible premiums so clients can continuously take and preserve profits as they occur.
- FIAs offer tax-deferral, lifetime income options, probate and social security tax avoidance, and death benefits.
- FIAs can be an ideal way to cover large medical and long-term care expenses with increasing health care costs in retirement.
A sound investment strategy is well-constructed and diversified between stocks, bonds, and other assets. An FIA’s unique benefits could be part of an overall long-term investment strategy, especially when preservation and lifetime income sufficiency are in your clients plans. FIAs can keep your clients in the game during high inflation, offering more planning opportunities and security from uncertain markets.
Contact our annuity specialist today to discuss an annuity campaign or questions.