Do you sell annuities?
If so, Ive got good news and better news.
First, theres this article, Proposed Bank Regulations Could Hurt Annuity Sales. Not good if youre a bank great if youre a producer. Basically, President Obama is pushing to restrict the activities of large commercial banks. This includes proprietary trading or from owning, investing in or sponsoring hedge funds or private equity funds.
Seeing as how the income earned from annuity sales at bank holding companies reached $2 billion in the first three quarters of 2009, any restriction on that activity would make a bank executive blanch.
But guess what? More restrictions on what banks can sell means less competition for you.
OK, now for the better news the government is also promoting annuities in general, and in a big way.
There are amendments proposed to the Employee Retirement Income Security Act of 1974. These would require 401(k) plan sponsors to disclose on one pension benefit statement per year how the value of retirement accounts translates into guaranteed monthly payments, instead of showing only lump sum values. While plan participants wouldnt be forced into annuities, the hope is that seeing their money in terms of regular payments would help build an awareness of the value of annuities which, by definition, provide guaranteed monthly payments.
And other Obama-backed proposals could spellmore great news for producers.On Jan. 25, he revealed several planned proposals one of which was expanding tax credits already in place for retirement savings.
There are some who are skeptical about the administrations specific promotion of annuities, and what will come to pass for that. So far, the president has leaned heavily on the need to save for retirement, but has largely steered away from the A word. But an emphasis on retirement means an awareness among consumers of the need to look at things like 401(k)s, IRAs and annuities.
And with less noise in the marketplace… well, that can only be good. Right?
Christina Pellett is the editor of the Agent's Sales Journal.
