It's January 2012. Many of us are now sitting in our offices, trying to figure out how to have a good year.
If you haven't tried them in the past, make 2012 the year you become acquainted with variable annuities (VAs). As most of you know, there have been many changes in the annuity world during the past year. Many major U.S. life insurance companies exited the annuity marketplace due to the increasing cost to these companies and much lower interest rates than in the past. My guess is we are going to see increased volatility in the market over the next couple of years. If this is indeed the case, many consumers will be looking for a way to have a guaranteed income no matter how the market performs.
People inherently know they need to be in the market in order to outpace inflation. They know leaving money in the bank will only allow them to go broke safely. If your client can be in the market and have the potential for a guaranteed growth rate, a guaranteed death benefit and a guaranteed income for the rest of his or her life, a variable annuity may make a lot of sense as you continue to build a financial plan.
As an advisor, you should be going through your book of business and looking for people who might benefit from these three potential guarantees no other financial product provides. Existing clients and prospects alike may be interested in adding variable annuities to their portfolios, so be sure to keep in contact with clients as 2012 progresses.
