How to make sure your client doesn’t Bail-Out
The news of the government bailout has many people running scared about their financial future which most likely includes some of your own clients.
Many of their fears are justified; the basics of a 401K plan include investing retirement money into the stock market, which has proven itself a little less than reliable over the past few months. As to who is to blame for our current condition will probably be debated for a while, but what is immediate and real is the question…
“How am I Going to Pay for this?”
We’re in tough times these days; no one is going to deny that. Because of the recent fallout with the stock market, banks are going under and people are worried if their retirement money is safe. Can you, with a clear conscience, tell them it is?
You can if you encourage them to invest in annuities.Â
Even before the market meltdown, annuities were the answer for people who feared an uncertain retirement plan for their generation. Here are some key reasons why Annuities are safer and more beneficial investment for your clients:
Get yourself out of the Market Gamble.
One of the most compelling arguments that you can make about annuities is that it takes your client’s retirement funds out of the risky game of the market, and into a secure and guaranteed payback system that will not fluctuate. No matter how low (how very very low) the market can plummet, it will not affect your client’s annuity.
This is the main benefit from investing in annuities over IRA and 401k; financial peace-of-mind in a turbulent economic time. So while the market plays the limbo game, have the foresight to offer your clients this escape out of Wall Street’s money games by investing in one of the many annuities offered.
Don’t limit yourself.
One thing that is appealing about IRA’s and 401K’s is the ability to defer taxes. Unfortunately, there is a price to holding back on the pay up to the government, and that’s restrictions on how much you can earn. Annuities can give you more flexibility on what you are allowed to earn without punishing you financially.
Income annuities can also guarantee your client a regular sum of money, whereas retirement funds become more and more sketchy over time. Considering that our retirement system is already feeling the demands of the baby boomer generation, this is a more secure way of making sure their retirement is secure.
Earn Money from what you Invest.
401k stores your retirement funds in the stock market, but it doesn’t guarantee you any type of profit. With an annuity, you’re guaranteed a minimum rate of return; some have even made upwards of 10%! You can still “play the market” with none of the risk. If the stock market tumbles, your investment stays the same. Your initial investment and any previous earnings will act as a foundation instead of a dropping point.
Not only that, you can even earn more money than what was originally in your 401K by investing in them. With annuities, it won’t just be a countdown to zero with your savings; you can actually earn more money than what is in the original funds with a minimum rate of return that is often greater than certificates of deposits (CD’s) or savings accounts.
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Financial safety is American’s primary concern, so much that the presidential debate’s theme on September 26th switched from Iraq to the Economy. While it’s uncertain how the bailout will pan out for all of us, you can offer your clients stability and safety from the gamble of the stock market.
