What is the Fixed Income Dilemma?

Tim Beauregard
Annuity Sales Manager

For the last 40 years bonds seemed to have had it all: Higher levels of income, a relative level of safety from market volatility, and capital appreciation as yields steadily fell… but that is no longer the case. Today’s historically low yields have brought bonds to the point where the risk likely outweighs the reward. 

Low interest rates diminish the ability for bonds to provide meaningful portfolio protection and leave investors with limited upside in exchange for taking on interest rate risk. Low interest rates also force investors to take on more credit risk in search of higher returns. Ultimately this challenges their ability to meet their long-term return targets and savings goals. This is the fixed income dilemma.

To position a client’s portfolio to meet their return target while providing income and security we must look beyond the traditional stock and bond allocations. Consider shifting a portion of the portfolio away from bonds toward a strategy that offers the upside of equity to help boost returns and important portfolio protection from stock market volatility.

Short term fixed indexed annuities do just that. Our top selling five-year fixed indexed annuity features a 2% floor and return of premium. Four uncapped strategies offer great earnings potential along with the strongest minimum guarantee on the market. Return of premium and 10% free withdrawals give you and your client flexibility and liquidity should their needs and the market change.

Give me a call today for details on how to put this to work in your next case. 1-800-535-6080

Recent Posts

Baby Boomers and the Growing Demand for Long-Term-Care

Jody Horetski Life Insurance Consultant As Baby Boomers face the dual challenge of planning for longevity and the high cost of long-term care (LTC), hybrid life insurance policies with built in LTC benefits have emerged as a compelling option.  These hybrid...

Navigating Market Volatility with Confidence: The Role of FIAs

David Bollinger Annuity Sales Consultant For clients seeking stability, annuities continue to gain attention—and sales reflect that interest. In 2024, annuity sales hit $434.1 billion, up 13% year-over-year, according to LIMRA. Among the various options, fixed indexed...

Is Tax Season Ever Really Over?

Chris Wholehan, President Wholehan Marketing As I write this article we are nearing the end of the typical “Tax Season” for 2025, where most filers will need to have their taxes completed by April 15.  As many advisors discussions with their clients may have been...

Life Insurance Done Simply

Jack Nachtrab Life Insurance Consultant At a financial services conference last week, I had multiple conversations about life insurance with independent financial advisors around the country. The common theme of the conversations was the perception that writing life...