Friday, March 11, 2016

The Truth about Fixes Indexed Annuities

Tony Robbins Wants Your Job!

What do Walmart, Wells Fargo, major wirehouses and Tony Robbins all have in common? They’re all part of a growing stampede to sell Fixed Indexed Annuities. 2014 will end up as the year where Fixed Indexed Annuity sales were up over 36% from the previous year, a new record high for FIA sales.

Financial commentators of all stripes tend to harp on high profile cases where consumers were sold annuities ill-suited to their needs. These commentators also claim annuities are too complicated, expensive and have inflexible terms, making them unattractive to changing needs.

Many advisors believe annuities offer clients little more than 3 to 4% interest. We believe the public is not getting a balanced picture and the time has come to set the record straight and give consumers the truth about fixed indexed annuities.


It’s crucial to disseminate accurate information to clients about what fixed indexed annuities (FIAs) do and why they should be considered as part of a retirement portfolio. A fundamental problem is that many advisors simply dismiss FIAs products as having no real value. New marketplace voices, i.e., Tony Robbins, should be a wake-up call to our industry and help advisors realize that clients do in fact value what FIAs offer and they want the benefits of an FIA. Robbins even stated there is a major unfilled need for products that protect consumers from market risk and simultaneously produce tremendous streams of guaranteed income.

FIAs are designed to guarantee income, offer peace of mind and provide protection and that’s why nearly 90% of annuity owners buy them – they protect contract holders from losing money. It’s important for advisors to keep their story simple and this is where someone like Tony Robbins excels, keeping his story short, sweet and attractive to consumers which can threaten your relationship with your clients. But why do consumers find the story so appealing?

Years ago, workers could count on monthly income from corporate defined benefit retirement plans and retail buyers had little contact with annuities. Most hadn’t even heard of annuities, which tended to be the purview of institutional money managers. With Baby Boomers retiring in droves and searching for guaranteed income, annuities enter into the lexicon more frequently. FIAs have emerged out of the shadows and whether from lawmakers on Capitol Hill mulling the merits of the Security Throughout Retirement Act or Treasury Department experts issuing the final version of the Qualified Longevity Annuity Contract last month, it’s clear that FIAs are capturing public attention and gaining a larger market share.

FIA deposits were at record levels and closed out 2015 at $50 Billion. Why the record growth:

•Deposits remain entirely in your control - you are not giving up access to your cash.
•FIAs offer the potential for significantly higher annual returns than other “safe money” solutions such as CDs or bonds.
•Your principal is 100% guaranteed – you can’t lose money.
•FIA growth is tax-deferred, maximizing compound growth of your retirement income fund.
•You get income insurance or guaranteed income for life when you select an optional income rider.

So what is the truth? It’s really all about Income, Income, Income.

As powerful a tool as FIAs can be for safe money return, what makes them so attractive is their ability to protect principle and simultaneously provide a guaranteed lifetime income stream, not to mention tax efficiency and upside potential without the downside risk.

No other financial product in the marketplace today does all of these things as efficiently as a fixed indexed annuity. Learning the truth about FIAs and their power give advisors the opportunity to immediately serve their clients’ best interests. Our Special Report is a definitive guide to Fixed Indexed Annuities; please call our office at (866) 225-1786, Ext 315 for a copy.


We look forward to the opportunity to clearing up the myths, hype and confusion surrounding these important investment vehicles.

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