When choosing the most appropriate solution for a client’s retirement, one of the most important things to know about your client is their level of risk tolerance. If your client has low risk tolerance, this typically means that the client is very conservative with their investments, most likely investing in fixed investments that lead to less risk and less reward, including investment vehicles such as savings accounts, CDs, money market accounts and traditional fixed annuities. Although fixed investments provide pros such as safety, liquidity, and predictable growth, they also have cons such as historically depressed rates, limited growth potential, and inflation risk.
If your client has high risk tolerance, this means your client is willing to risk more money for the possibility of a greater return. Clients with high risk tolerance typically invest in variable investments such as variable annuities, mutual funds, and traditional stocks. Variable investments provide pros such as high growth potential, dividends, as well as potential inflation hedges, but also have cons including market volatility and the potential loss of principal.
What if there was an option available in the middle of both fixed investments and variable investments that provided some of the better features of both worlds? That solution is a fixed indexed annuity. Fixed indexed annuities provide 100% guaranteed principal protection, growth potential with interest credited based on the performance of an underlying index, guaranteed interest rate minimums, access to money for the unexpected, a death benefit, and lastly allow for payment options to meet retirement income needs.
Join us on our Lincoln Financial hosted webinar Wednesday June 9th at 10am by Registering Here to learn how these fixed indexed options can help your client address some of the biggest threats in the market: Inflation, increasing taxes, and rising interest rates, while simultaneously maintaining flexibility, liquidity, and earnings potential showing real trackable results!
