Owner/CEO
Around 15 years ago I remember speaking at seminars, commenting to advisors that at that time there was over $3 Trillion dollars sitting in cash / cash equivalents (bank accounts, CD’s, etc.), which represented a huge market of opportunity to talk to clients about better investment alternatives for that “safe money”.
In a recent article in the Wholehan Marketing weekly email newsletter, one of our partner insurance carriers contributed an article entitled “The Cash Conundrum…”. In summary, since the beginning of the pandemic, the growth in cash / cash equivalents has grown to over $6 Trillion Dollars! This is a testament to people saving more over the last few years (arguably forcibly so) but saving in places potentially not so prudent in sound financial planning. This unprecedented stockpile of cash represents the clients “safe money” that they don’t want to put at risk with market exposure.
This pile of cash – again – is a Huge market of opportunity for advisors to show clients better alternatives to the traditionally low yields of these cash positions without actually having to take this “safe money” into the market. Fixed annuity rates are trending well over 5% in the MYGA (multi-year guarantee) market, while Indexed annuities have growth potential in the 8-12% range and beyond. A fixed Annuity/LTC Hybrid product in the market today is paying 6% interest and can double or triple the value of the account if Long-Term Care needs arise. Hybrid Life Ins. / LTC products can provide an immediate 3-4x leverage on deposits if LTC is needed, while still providing tax-deferred growth and tax-free death benefits.
The market is out there, the product solutions are out there. Contact the experts at Wholehan Marketing to discuss how we can help you provide better alternatives for your clients’ safe money.