In part two of this three-part series, I share a story I use to explain how fixed annuities are the middle ground between two extremes.
Continuing our discussion about positioning ourselves by way of metaphor and story telling, I want to specifically talk about fixed index annuities and how we can best position them for our clients, and if suitable for them, motivate them to take action.
Unquestionably, these products are complex, but if you find your prospect's eyes glazing over in the middle of your presentation, perhaps it is time to simplify your presentation and tell the story. I have long felt that fixed indexed annuities are "in between" products that can serve as a bridge between financial extremes. Let me show you what I mean.
There are a lot of areas of our lives where we tend to go to one extreme or the other. Either we are eating in a very healthy manner, or we are living on a diet of Doritos and ice cream. We can get in the habit of exercising on a very regular basis, or we can fall into a rut where the most strenuous thing we do is to bench press the TV remote control.
Investing can be that way, too, which can cause some real problems for our portfolio. Two of the extremes in investing are:
1. Get rich quickly. Here, we get caught up in the hype and hyperbole that can take place when the markets are soaring and our emotions soar with them. We can end up making decisions that, in our more rational moments, we would never make. I have often said that the four most dangerous words in the investment vocabulary are, "It's different this time." Investing is a marathon race, not a 100-yard dash. Attempts at getting rich quickly often end in disaster.
