Thanksgiving is my favorite holiday. From eating home-cooked turkey with all the trimmings, to gathering at a favorite restaurant, to sitting around the table declaring what we’re thankful for: every family has their own traditions. And with all we have to be thankful for this season, I couldn’t help but wonder if financial professionals realize the important role they play in society and how thankful clients must be for their guidance.
The work you do every day to help ensure your clients have financial futures they can count on can be life-changing. Those who’ve been advised to use an annuity to create protected lifetime income have the satisfaction of going to their mailboxes every month and pulling out a lifetime check that can help get their basics covered—and that’s a lot to be thankful for.
It’s true. Research shows that protected lifetime income can lead to a more enjoyable and happier retirement.1 And because the main worry of retirees is running out of money, this makes perfect sense.
But often, annuities are an underdog when it comes to vehicles used in retirement planning. The misinformation and myths about them run rampant. And though they’re not the right strategy for every client, more and more, financial professionals recognize the many advantages annuities can provide and how the various types of annuities can be used to mitigate inflation, market risk, longevity risk, and tax risk. Need a refresher? Here’s some information about how annuities help mitigate these types of risks.
Other kinds of annuities such as fixed, indexed, and deferred income annuities were not addressed here, but also are being strategically used in clients’ retirement plans. They’re worth evaluating as a complement to your clients’ portfolios.
So, this Thanksgiving if this fits your clients needs, think about reaching out to clients with an annuity strategy that could help them enjoy this special time in their lives and reduce their worries about running out of income. They likely will be extremely thankful for your wise guidance.
1The Alliance for Lifetime Income, “Happiness Studies,” March 2019.
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