Are the Volatile Markets Helping Your Annuity Business?
February 7, 2012 by Daniel Williams
February 6, 2012
What market conditions make for the best time to recommend indexed annuities to
your clients? The easy answer would be anytime you’re in front of the client.
However, a time of particular benefit, according to a recent conversation with
advisors, is when the markets are volatile.
It makes sense when you think about it about it: Market
volatility means a perfect storm for a flight to safe products. As I mentioned, we reached out to advisors
recently to get their thoughts on their level of success with annuities during
economically shaky times. Following are highlights from our conversation with
advisors and how they’re communicating the benefits of safe products in the
current environment.
Retirees and pre-retirees appreciate the safe, predictable returns and/or income of the
indexed annuities.
Alton Scott
A lot of people do not understand what indexed annuities are. When explained they
seem to just want them as a safer haven.
Philip N. Raines
It’s good for people to understand that some return on their investments is better
than no return or worse.
Holly Worthington
Clients are looking for a guarantee on their principal with options for higher return
and better retirement protection.
Max Haghighi
Protecting principal is a high priority for the people I speak to.
Norman Gjestland
We have experienced two extended periods of volatility in 12 years. Clients want
predictability not splash.
Mark Squires
About the Author
Daniel Williams
Daniel Williams is an award-winning journalist and business editor with extensive
experience in print, online and trade shows.
Prior to joining Senior Market Advisor, Daniel was editor of Real
Estate Southern California magazine and West Coast South Bureau
Chief of GlobeSt.com, both are divisions of Real Estate Media. Previously, he
covered the commercial real estate beat for the Orange County Business Journal. While there, he
received a certificate of merit from SABEW (the Society of American Business
Editors and Writers Inc.) for a story on “OCs Cash Economy.” A native
of the Deep South, Daniel relocated from Los Angeles to Denver with his wife
and daughter.
