The Market Has Changed. Has Your Clients’ Retirement Strategy?

Every quarter brings a new market story. Interest rates, inflation, the stock market, the economy, and the Federal Reserve continue to give investors plenty to think about. And after a strong summer for stocks, September is once again reminding investors that markets can change quickly.

For advisors, that uncertainty can create an opportunity—not necessarily to predict what the market will do next, but to help clients focus on what they can control.

A Good Time to Talk About Retirement Income

For clients approaching or already in retirement, the conversation is often less about maximizing returns and more about creating a retirement strategy they can live with.

How much income will they need?
Where will that income come from?
How much market risk are they comfortable taking?
What happens if the market declines significantly early in retirement?

These are important questions, particularly when interest rates remain elevated, and the outlook for both rates and markets remains uncertain.

That’s where annuities can become an important part of the conversation.

Fixed and fixed indexed annuities can provide opportunities for principal protection, tax-deferred growth and, depending on the product and strategy, guaranteed lifetime income. They can also help clients move a portion of their retirement assets away from some of the uncertainty associated with market losses.

Don’t Wait for the Next Rate Move

Today’s interest-rate environment continues to create opportunities for retirement planning. The 10-year Treasury yield has recently moved toward 4.8%, while longer-term rates remain elevated. At the same time, concerns about inflation and future Federal Reserve policy are creating additional uncertainty for investors.

The question isn’t whether rates will be higher or lower six months from now.

The better question may be:

“Does your client’s retirement strategy make sense at today’s rates and given today’s market environment?”

A client who hasn’t reviewed their retirement assets recently may have opportunities that weren’t available a year or two ago. Existing annuity contracts may also be worth reviewing to determine whether they continue to meet the client’s objectives.

Turn Market Uncertainty Into a Planning Conversation

The next time a client calls because they’re worried about the market, consider using that conversation as an opportunity to take a broader look at their retirement plan.

A simple review can uncover:

• Assets that may be exposed to more market risk than the client realizes
  • Retirement accounts sitting in cash or low-yielding investments
  • The need for additional guaranteed lifetime income
  • Opportunities to reposition assets for principal protection
  • Existing annuities that may need to be reviewed
  • Gaps between a client’s guaranteed income and their retirement expenses

Not every client needs an annuity—and an annuity isn’t appropriate for every situation. But for the right client, the right annuity can be a valuable piece of a well-designed retirement strategy.

Have a Case You’re Working On?

This is where we can help.

Whether you’re looking at a fixed annuity, fixed indexed annuity, income strategy, exchange, replacement or simply trying to determine whether an annuity makes sense for a particular client, we’re here to help.

Our team can assist with product comparisons, case design, illustrations and finding a solution that fits the client’s goals—not just the current market headlines.

As we head into the final quarter of the year, now is a great time to review your book of business, identify clients who may benefit from a retirement income conversation and make sure you’re prepared for the opportunities ahead.

The market will keep changing. A good retirement strategy should be built to handle change.

Happy Selling!

Ben