Annuity Meeting #3 - Selling Annuities
Objective - Explain how a Fixed Index Annuity will help clients manage their portfolio during retirement. Many clients do not understand how they work and need to be educated the right way. Annuities offer peace of mind that other investments cannot offer.
WATCH THE RECORDING
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Original Recording of slides (Good questions from the group)
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Better Recording of slides but no group interaction (Short Version)
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FOUR TYPES OF ANNUITIES
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SPIA INCOME ONLY
Single Premium Immediate Annuities require a lump sum of premium in exchange for a lifetime income based upon life expectancy. In most cases, there is a PERIOD CERTAIN option that continues to pay a beneficiary should you not outlive the specified period selected. Income starts immediately, and your access to premium paid is gone. BE CAREFUL WITH THIS!!! 
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FIXED GUARANTEED RATE
OR A FLEXABLE RATE Fixed Annuities offer a Guaranteed or Flexible rate for a term that has been chosen. Most common is a 5 year guaranteed rate that ranges from 2.5 to 4% depending upon the marketplace environment at time of purchase. Fixed Annuities are often used to grow money safely and with a rate that is many times higher then a bank along with a tax deferral option better than CDs. 
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FIXED INDEX NO MARKET RISK
Fixed Index Annuities allow you to select a market linked index without the risk. You will choose an index that provides you potential interest rate based upon the index performance using a choice of a Cap, Spread or Participation Rate. There is NO MARKET RISKS and in most cases NO FEES in most cases, but there are some exceptions based upon the product offered. Look at the Index Performance 
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VARIABLE MARKET RISK & FEES
Variable Annuities are directly invested into the market through sub-accounts, much like mutual funds. These are offered by brokers and have MARKET RISK and a substantial amount of fees that often range from 3.5 to 5% per year. They are complicated as they combine investments and annuities together into one product with lots of rules. LISTEN TO SUZE ORMAN |
Growth vs. Income
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GUARANTEED INCOME
You can receive an income for life either monthly or annually. Most companies charge a fee but also offer a guaranteed roll-up benefit and Long-Term Care feature that can be triggered later in your life. Vertical Divider
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SAFE MARKET GROWTH
You can receive a market linked growth rate of return with no market risk and NO fees*. Income may be taken as needed of up to 10% per year with most carriers. *Some indexes may have an optional fee for enhanced index growth options. Vertical Divider
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RISK GROWTH
The concern of money strictly in the market is when you're taking out money during retirement. Often in a down market, it can be very difficult to return from the market decline called the Sequence of Returns |
How Fixed Index Annuities Work
A Fixed Index Annuity will gain with the market, but not lose principle or interest during a down market.
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WHAT HAPPENS WHEN INTEREST RATES CHANGE?
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THE POWER OF ANNUAL RESET
HOW RATE LOCKS WORK (not on all products)
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