We’re in this industry for a simple reason:
Maximum Financial Output At Minimum Cost
Secondary Market Annuities offer your clients the highest guaranteed return and almost always provide higher guaranteed results than any other annuity strategy. They are hands down the best way to achieve a stable floor of guaranteed income.
Guaranteed income is critical for a host of reasons-
Investors are plagued by low rates, volatile markets, a profligate Government on an out of control spending binge, and a tepid economy. In addition, a host of new risks unique to retirees must also be dealt with, from longevity risk, to inflation risk, to sequence of returns risk. We’ll touch on all of these in just a minute…
Retirees and especially those nearing retirement need the message in these pages, and they need to take action by securing guaranteed outcomes to protect themselves.
What is surprising to many is that the size of the investment portfolio is not really a determining factor of need. The need for guarantees is determined more by the spending habits of the individual.
For example, a retiree with $5M net worth and a $500K/ year lifestyle is in dire straits, but a retiree with a $250,000 portfolio, $20K of Social Security, and a $35K/ year lifestyle is in a much safer position.
Now, the investor with a $5M net worth may be comfortable carrying some risks the $250K account cannot afford to bear. They may also have options open to them that others do not. But from a safety perspective, the high net worth investor needs guarantees most desperately, to be truly safe from drastic risk of loss and lifestyle change.
Annuities Are A Great Solution… But Secondary Market Annuities Are Better!
Demographic reality will cause significant pain to investors for decades. Pervasive low rates and tepid markets are here to stay… or at least, so says the tea leaves I read from the Fed. And this chart really strikes home:
The tidal wave of retirees will undoubtedly force home prices, equity prices, and yields down as they all collectively sell to buy groceries and medical care. Guaranteed income is a great way to protect against all these threats.