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We’re bringing January to a close in a few days….. what a wild ride it has been in the market! What impact will that market volatility have on your client’s chances of success as they plan and approach retirement? Five key risks can have a significant impact on whether savings last the full length of retirement: withdrawal rate, market performance, inflation, health care costs and longevity. Additionally, the order in which returns are realized has a significant impact on whether or not that money will last a lifetime, as it should be intended to do. When still working and not withdrawing from the portfolio, the average annual return is a good indicator of investment success. That’s because, with no additions to or withdrawals from the portfolio, the sequence of returns — in what order the best and worst years come — has no impact on the portfolio’s final value.
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What are sequence of returns? 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.
Generation Xers are worried that their financial plan is not strong enough and that it won’t be reliable to withstand the impact of planned and unplanned expenses.
What they may not realize is:
- they will need 16x their final salary to fund an adequate retirement1
- Over 50% vastly underestimate long-term retirement and care expenses2
Generation Xers are approaching their peak earning years and are a great growth opportunity for business expansion. AIG has a new and exciting new campaign to help you better understand what and why Generation Xers think the way that they do, so that you can improve your sales approach.
| Tools to help you jump start 2016 |
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Eschels Financial
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Life experiences can have a dramatic impact on how we view the world and the types of messages that resonate with us. If you’re using the same prospecting and sales strategy for The same message and communication style that works best for a pre-retirement Baby Boomer will be different for a Millennial that grew up in the internet age.
We want to help you grow your business, and expanding your possible pool of customers is one of the best ways to do so. We are sharing all of the best materials we have found on generational marketing in one place so you could reference them throughout the year. These resources are a great opportunity to learn how to best engage prospects from different generations and turn-key prospecting tools for each generation as well.
Call or email us today so you can start building your business across all generations. |
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| More insight on marketing to different generations: |
- 62% of Millennials are more likely to become a loyal customer with brands that engage with them on social media
- Millennial purchasing power is projected to surpass Baby Boomers in 2019
- The income gap is growing twice as fast in Generation X than other generations
- Generation X lost 45% of their net worth in the 2008 economic crisis
- Only 60% of Boomers report having any retirement savings
- Approximately 10,000 Boomers turn age 65 every day
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Resources:
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To learn more please contact Eschels Financial today!
Cyndi Stern
Phone: (248) 644-1144
Email: cyndi@eschelsfinancial.net
http://www.efg-ida.com/ |
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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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