Thought for the day:
“You can’t have a better tomorrow if you are thinking about yesterday all the time.” Industrialist Charles Kettering
If you will read no further:
At Westland Financial we have always promoted win/win solutions to clients’ financial planning challenges. Like introducing Universal Life providing current value to the client, profitability to the carrier and fair compensation to the advisor; creating and promoting MoneyGuard which provides a win, win, win for Client, carrier and advisor. For almost 10 years I have been calling for an annuity that would provide the lifetime guaranteed income guarantees of SPIAs while compensating the fee-based advisor with annual asset-based fees instead of one time commissions. And now we have it.
Now you can provide your retired client with greater income, increasing with inflation, guaranteed for life and include it into his managed portfolio without affecting your own cash flow. Read on for more details; then call Josh at 800.238.8144 for specifics and case design assistance.
PS You might as well read it now. Ultimately, you will be embracing this concept. Sooner is better.
Thought for the week:
A revolutionary (non)Variable Annuity
Most VAs since the late 90’s have been purchased because of the income riders that guarantee an acceptable lifetime income regardless of the performance of the underlying securities portfolio. The client gets the advantage of participating in market returns but is assured that when it’s time to receive a lifetime retirement income, he can count on the value of his investment (for purposes of establishing the size of that monthly check) having appreciated at no less than 5% (or something close). This is the most popular annuity product ever. Why? Because the clients can indulge their desire for stock market gains while assuring their guaranteed income.
In most cases however, the growth in the investment account has been less than impressive. In the best of markets it’s difficult to grow the account at anything over the rates guaranteed by the income riders when you subtract various fees that can exceed 3% from the returns achieved by the required asset mix. All of that and the client’s principal (for liquidation purposes) is still at risk.
Introducing the latest innovation in Personnel Pension strategies!
For the client, the product provides:
- Protection of principal
- Respectable growth in all market scenarios
- Guaranteed Lifetime Income (if desired) that can offset inflation.
For the Advisor, it provides a way to:
- Reduce portfolio volatility and uncertainty
- Provide clients with assured income for life, if desired
- Receive asset based compensation
The oldest and largest producer of Equity Index products has developed the next generation of retirement products and is making it available only to licensed investment advisors and high end professionals with professional designations. The sophisticated nature of these products is immediately evident and clearly must be presented by knowledgeable individuals.
- Imagine a product that uses the Barkleys Strategic Bond Index in combination with the S&P index to increase upside potential while guaranteeing NO LOSSES.
- Imagine if your client could receive each year, the total upside appreciation of their investment less a 2.9% spread, but for future income purposes that annual realized rate of return is increased by 50%.
- Imagine if you can assure them that their principal is 100% safe from any market correction.
- Imagine the client’s lifetime income will increase each year by the same rate as their account value. For example:
- The index increases by 6.9%, their account value increases by 4% (6.9 -2.9 spread = 4%)
- Their retirement income increases by 4% the following year and will continue to receive like increases in subsequent years.
- Imagine earning an asset-based fee the same as your AUM.
Check out this Sample Case
My client is 67 and has $150k in a variable annuity with a GLWB rider. Because the carrier requires that 40% of his assets must be in bonds it is difficult to receive much over a 9% combined ROR, even in a very good year. Subtract the fees of 2.5 – 3% and his “up year” maxes out at a little north of 6% with no guarantee it won’t go south next year.
Since time is getting short for my client to take income (about 7 more years) I suggest that he lock in his gains to date by “1035ing” his balance into this State-of-the-Art product,, continue to increase the value for retirement income purposes and never see his cash balance recede; no matter how badly the next bubble may burst.
He ends up with a less expensive and more predictable retirement plan, protection from loss of principal and a more robust pension strategy going forward…and I get a raise in income.
Call Josh. You have his number.