Millions of Americans are expected to retire in the coming decade, and annuities will significantly help them. There is a wide range of investment alternatives available to suit the demands of investors with varying degrees of risk tolerance. Annuity carriers and distributors need to know which annuity product concepts are popular in light of low-interest rates and strong stock market returns. Advisers help consumers with annuity plans. This propensity means sales patterns may not reveal investors’ conceptual preferences. If investors could choose, what would they do? Secure Retirement Institute has surveyed investors’ preferences for the four basic kinds of delayed annuities now on the market: fixed-rate, fixed indexed, registered index-linked, and variable annuities. After considering their present financial condition and looking at four investment possibilities with varying levels of risk and reward, we invited people to “invest” $100,000 for five years in one of them. A simplified explanation and possible consequences were given to participants rather than industry names for the products. “Full downside protection, limited upside potential” was picked by 46% of investors. Most of this is because they place a higher priority on preserving savings than increasing profits. Older, more cautious, and less financially savvy investors are more likely to use this. The “limited downside protection, limited upside potential” option was chosen by 35% of investors. Investors who choose roles do so because they are confident in the stock market’s performance over the next five years and appreciate the opportunity to increase their returns. They were much more popular than VA or FRD goods in this market segment. What’s to stop them from buying FIAs and RILAs on their own if their preferences are clear? In fact, according to SRI research: A majority of the 57% of investors who frequently utilize paid specialists to help with the household’s financial and investment choices (92%) would engage their advisers in this sort of product selection decision according to the survey. 9% of those questioned indicated they would outsource all decision-making to their advisors. Investment advisers are more comfortable making this product selection choice for older, retired, and higher-income customers. FIAs and RILAs provide investors the best of both worlds regarding prospective gains and protection against losses, according to this general selection pattern. Protecting your investments is a popular topic in a long-term bull market. Many investors, however, are wary about securing a poor rate of return in the face of historically low-interest rates. Most investors don’t want to make such a big financial decision alone. Even if clients give their consultants discretion over buying and selling, annuity selection requires communication and teamwork. Advisers must integrate the particular goals of annuities with investors’ needs and attitudes to succeed.
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Bio:
Mike was born in Chicago, Illinois on August 13, 1946. He was brought up in thesuburb of Skokie on Chicago’s northwest side and graduated from Niles Township (East ) high school In 1964. Two years later he joined the US Air Force in November of 1966. After 2 years of Intense training he volunteered for Viet Nam and was sent toBien Hoa Airbase, which was 25 miles from Saigon, the nation’s capital. He volunteered for a number of especially dangerous missions on his days off, such as flying as a door gunner on a US Army helicopter and as a technical assistant on a psychological operation on an Air Force O-1E observation aircraft. Capping off his impressive accomplishments was winning the coveted Base Airman of the Month for March 1969, a feat which was featured in the Pacific Stars And Stripes newspaper read by every service man stationed in the Pacific theater of operations. After hisViet Nam tour of duty he was stationed at Luke Air Force Base in Glendale, Arizonawhere he met and married his wife, Lequita.He graduated from Arizona State University in May, 1973, and after a 30-plus year career as a financial advisor he joined a number of service organizations including Easter Seals and Valley Forward, sponsor of EarthFest. He was also involved with the National Federation of Independent Business and became the longest-serving chairman of the Leadership Committee ever. He spoke before the ( AZ ) House Waysand Means & Senate Finance committees. He then joined Disabled American Veterans ( DAV ) in September of 2015. He rose quickly through the ranks and became Chapter 8 Commander in May of 2019 where he served with Distinction for 3years before being “ termed out”. The next year, as Vice Commander, he won the title of National Champion Recruiter!
