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Sales Tools and Concepts

RMD Optimization

Financial markets have had a great run for a long time, and the next few years may be more challenging. Whether your clients will need the income from their IRAs or not, the IRS requires them to withdraw from those IRAs (and qualified plans) beginning no later than April 1st of the year following the year they turn age 72. If the first RMD’s coincide with a bear market, your clients could be in the unenviable position of withdrawing from an asset that is already depleted in value, jeopardizing the potential for those depleted assets to recover. An IRA funded with a FIA/GLWB can provide a robust guaranteed lifetime cash flow beginning at age 72 if purchased a few years in advance. It protects from having to withdraw from depressed IRA assets intended for growth.

Read the article Advanced Strategies for RMD Management – Rafferty Annuity Framing LLC – Commentaries – Advisor Perspectives

Filling the Social Security Income Gap

Social Security may be the only source of guaranteed lifetime income for most people in retirement. And it will not be enough to meet non-discretionary retirement expenses for most people. 2022 Monthly Social Security Retirement Benefits: Average: $1,658 (worker); $841 (spouse) Maximum $3,240 (full retirement age), or $4,190 (70)

EMG Has Solutions!

Today’s suite of fixed indexed annuities (FIAs) with Guaranteed Lifetime Withdrawal Benefits (GLWBs) produce attractive guaranteed cash flows and can be positioned to fill that income gap that the above exercise will quickly uncover. For example, a 62-year-old single client can fill a $20,000 a year income gap beginning at age 67 for only $262,000 by purchasing an FIA/GLWB today. The alternatives are unpalatable: either commit far more capital at low-interest rates to produce that same $20,000 annualized cash flow or expose that capital to market risk.

Read the article If MacGyver was Your Financial Adviser.

Recovery From Investment Losses (Cumulative Gain Rate Time)

How much will a client’s assets need to grow to recover from market losses?

Growth of $100,000 Over 10 Years At Various Rates (The Cost of Waiting)

Dollars are emotional – interest rates are not! Use this piece to help compare the dollar value of interest that a fixed annuity or a fixed indexed annuity could accrue over time as compared to other safe money approaches.

How Much Will a Non-guaranteed Portfolio Need to Grow to Match the Future Cash Flow That An Annuity Will Guarantee? (Certainty Probability)

Use this tool to help start a conversation with clients about their choices for creating future retirement income.

Annuities with income riders provide guaranteed future cash flow outcomes which may be difficult to match with traditional methods like the 4% “safe withdrawal” approach.

Use Fixed And Fixed Indexed Annuities to Save With Style (EMG Style PDF)

This piece is a simple reminder of the fundamental virtues of fixed annuities!