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Welcome to February- did the ground hog see his shadow? Will there be an early Spring, or for those of us in colder parts of the country, will we have 6 more weeks of Winter? Either way, we are preparing for tax time, looking at annual financial statements, deciding to change jobs, or retire: these early months of the year seem to bring decisions about changing the direction of our financial lives. How will you guide your clients in those decisions? Will their money last as long as they do? Will it last as long as they want it to? As they have decisions to make so do you, their financial advisor. Will you decide to bring your clients new solutions for their financial concerns? Let us guide you and provide some direction. Take a look at our Events for February and March for those of you local to us and for those farther away.
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Sequence of returns risk involves the order in which investment returns occur and the impact of those returns on people who are near retirement, transitioning into retirement, or recently retired. In a nutshell, period of market losses can have a severely negative impact on the income generating potential of a portfolio belonging to a person who is transitioning into retirement. The reason is that people who are transitioning into retirement will—in the near-term—need to begin withdrawing portfolio funds to produce income. As a result, the ability of the portfolio to “catch-up” during subsequent years is greatly diminished, and the person’s longevity risk will likely increase significantly. Their money simply won’t last. Downside protection of one’s financial assets is critical and can help solve sequence of returns risk.Both Life Insurance cash value and Fixed Indexed Annuities can be used to not only supplement retirement income, but also to eliminate the sequence of return REAL risk and dilemma.
- For more on Sequence of Returns and ideas- Download a piece here from AIG
https://estationsecure.americangeneral.com/SharedFilePile/CommonFiles/IUL/ValueIUL/Sequencing_of_Returns.pdf
Looking for the latest 2016 tax summary guide? Download here
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How will you guide your clients and prospects this year with new ideas? As we have known and anticipated for the last several years, interest rates are now on the way back up, and retirement income will be affected if bonds are the primary source. Have you considered the importance of showing a client what a guaranteed income would look like, one that has the opportunities to increase as the index performs?
Events For February
Ø American National (ANICO) will present a Life Insurance and Annuity Webinar with us on Tuesday, February 9, 2016 from 10am-11am EST with Jeff Moore, National Sales Manager. The registration link and information is below:
· Please join the meeting from your computer, tablet or Smartphone.
Ø American National (ANICO) will join us in presenting a Life Insurance and Annuity Workshop in our office locally on Wednesday, February 24, 2016 at 12 Noon-1pm with Jeff Moore, NSM. As a continuation of the ideas discussed on the Feb 9th Webinar, Jeff will continue in detail on the ANICO Life Insurance and Annuity case design opportunities for your business growth in 2016. There will be a light lunch served at 11:30am. Please call our office to reserve your seat at 248-644-1144.
Events For March
Ø Protective Life Insurance Company will join us in presenting a Life Insurance Workshop in our office locally on Tuesday, March 15, 2016 at 12 Noon to 1pm with Andy West, Regional Vice President. There are so many creative uses for Life Insurance from retirement supplement income, charitable giving, legacy planning, and more. Someone is asking your clients are their life insurance- why isn’t it you? A light lunch will be served at 11:30am. Please call our office to reserve your seat at 248-644-1144.
Eschels Financial
Group
Life Insurance Reviews
| As 2015 draws to a close, it’s a natural time to reflect and consider ways you can grow your insurance practice in 2016.One of the most tried and true methods for insurance professionals to grow their business is regularly conducting life insurance reviews.
A periodic life insurance review positions you as an important professional resource with your clients. It helps build credibility and lends itself to referrals. And it’s something your customers want: 60% of Americans want to meet with their advisor every year.
And as you’re building credibility and your stream of referrals conducting regular reviews, you’re likely going to find direct sources of new business as well. According to LIMRA, half of American households already believe they need more life insurance than they currently have. And their instincts are right: the average American household has $320,000 less in life insurance coverage than they’d need to maintain their current lifestyle.
I’ve assembled the best insurance review materials our industry has to offer and linked to them below. In 2016, make conducting life insurance reviews a core part of your business strategy and watch your practice grow! |
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More insight on life insurance reviews: |
- Forty-four percent of insured households want someone to contact them to review their life insurance coverage and policies at least every five years. And almost one third want a review every couple of years.
- According to LIMRA, half of American households believe they need more insurance, and they overestimate the cost by 300%
- One third of existing policies were purchased over 10 years ago
- The average American family is underinsured by about $320,000
- Millennials are most likely to be underinsured – 6 in 10
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| More insight on life insurance reviews: |
- Forty-four percent of insured households want someone to contact them to review their life insurance coverage and policies at least every five years. And almost one third want a review every couple of years.
- According to LIMRA, half of American households believe they need more insurance, and they overestimate the cost by 300%
- One third of existing policies were purchased over 10 years ago
- The average American family is underinsured by about $320,000
- Millennials are most likely to be underinsured – 6 in 10
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Life Insurance Review Resources:
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The stock market can be an uncomfortable place for some clients.
Consider these three recent bull markets*:
- 1997-2000: Up 100% before declining 86%
- 2003-2008: Up 90% before declining 53%
- 2009-2014: Up 142%… where do you think the market will go from here? Now could be a great time to exercise a “correction protection” strategy for your clients by investing in the Protective Indexed Annuity II.
If you have clients nearing retirement who are concerned about another decline, ,help them exercise “correction protection” by taking their gains out of the market and investing it in the Protective Indexed Annuity II. This solution provides protected growth, opportunities for higher returns, and even offers secure retirement income with SecurePay SE, an optional withdrawal benefit.
Contact me now for more information:
Cyndi Stern – Marketing Director
Eschels Financial Group
(248) 644-1144, ext. 110
cyndi@eschelsfinancial.net
Is your client’s non-qualified annuity or qualified annuity where it needs to be?
According to Gallup’s 2009 survey of non-qualified annuity owners:
- 81 percent surveyed intend to use their annuity as a financial resource to avoid being a financial burden on children.
- 73 percent surveyed intent to use their annuity as an emergency fund in the case of a catastrophic illness or for nursing home care.
Make sure your clients’ annuities are aligned with their intentions.
The Pension Protection Act (PPA)allows for income tax-free withdrawals from specially designed non-qualified annuities to fund long-term care expenses, regardless of cost basis. By exchanging a current annuity for an annuity that qualifies for the PPA advantages, your clients can be matched with a vehicle that can meet their needs while providing a tax advantage. Of course, before any annuity exchange is made, all factors should be weighed to verify the client’s best interest.
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