In the past, financial professionals have relied on a well-balanced portfolio of stocks and bonds to manage a client’s risk versus return. While the concept is widely accepted, if you ask 50 different financial professionals what a well-balanced portfolio of stocks and bonds looks like, you'll likely get 50 different answers. However, they will probably suggest bonds be used in a portfolio as a hedge against stock market losses to reduce portfolio overall risk. But is that always the right answer?
On December 20, 2019, President Donald Trump signed into law a spending bill containing the SECURE Act (Setting Every Community Up for Retirement Enhancement Act). The new legislation took effect on January 1st of 2020, giving only 11 days (minus holidays and weekends) for everyone to adjust. This has left many financial institutions and financial professionals affected and scrambling to prepare.
As annuities gain momentum in the retirement income arena it is important to make sure that they are set up correctly. Failure to do so could deny your clients the full range of annuity benefits.
Before we get into whether an MVA would be “good” or “bad” for a client, let’s talk about what an MVA is — because let’s face it, there A LOT of acronyms in the insurance world and it’s hard to keep them all straight.
You may often hear clients say, “I want to keep my money liquid, I don’t want to tie it up.” The desire to keep money liquid can be strong across all socioeconomic and political spectrums. Why do many clients insist on keeping out money in a liquid state? And what does that really mean, to keep money liquid?
Last updated March 2020
After a long run in a bull market, recent market corrections and talk of an economic slowdown can mean scary times for your clients. Are you prepared with strategies that could save them from potentially losing retirement savings?
Updated December 2019
There are several options financial professionals can use to help their clients prepare a strategy for retirement expenses. Long-term care insurance (LTCI) provides care for those who need long-term assistance in a nursing home, care at home or adult daycare. Some annuity "doubler" income riders can also be used to provide double the annual income for up to five years if the annuitant qualifies.
As more companies do away with defined benefit pension plans, the responsibility is left on individuals to ensure that they have enough income saved for retirement. The issue is many people don’t realize the importance of developing a financial strategy now or understand what needs to be done. Help your prospects and clients with a financial strategy that will help them not outlive their savings.
What does it take to get a saver to move their money? Apparently not that much. According to an insurance company representative, they are writing new business hand over fist because their company offers the highest guaranteed fixed rate of interest for a specific number of years within a deferred annuity.
In the past, financial professionals have relied on a well-balanced portfolio of stocks and bonds to manage a client’s risk versus return. While the concept is widely accepted, if you ask 50 different financial professionals what a well-balanced portfolio of stocks and bonds looks like, you'll likely get 50 different answers.
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This content is for informational and educational purposes only and is not designed, or intended, to be applicable to any person's individual circumstances. It should not be considered as investment advice, nor does it constitute a recommendation that anyone engage in (or refrain from) a particular course of action.