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