Will 2024 be Better than 2023?

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At the risk of sounding “preachy,” I want to offer a suggestion about how to make 2024 even more successful than 2023.

It comes down to one question… Are you doing anything different this year?

If you answered “Yes,” then GREAT! You have at least increased the probability of having more success. If you answered “No,” then you will likely get about the same results as last year. If you are not sure what to do differently, we can help. We have been helping advisers grow their business since 1993. Just give us a call and let’s talk. No obligation. No sales pitches. We will just share with you options, and you can choose the ones you like. But DO IT NOW! 800-200-9194.

“Zero is Your Hero!”

Sometimes the economy is rocky, and an index annuity returns a Zero for the crediting period. This can be confusing and disappointing to your annuity clients, especially if it is their first index annuity, and even more so if it is the very first crediting period. I recently had a Zoom meeting with an adviser and his client who was frustrated that he had put $200,000 into an index annuity, only to receive zero interest at the first anniversary. Here are a few tips on how to help the client understand what is going on.

First, approach the conversation with a positive attitude. Don’t be apologetic or in any way negative. You can certainly be empathetic and say things like, “I certainly understand how that can be frustrating.” But avoid any sort of apology. Instead, approach the conversation with a positive attitude and actually celebrate that the market is down. This is where the phrase “Zero is Your Hero” comes into play—because receiving zero interest is far better than taking a loss in the market.

Remind the client that Zero return years are the strongest part of why millions of retirees put the majority of their assets into index annuities. And remind them that the power of index annuities plays out better than other investment alternatives over several years. Receiving some zero returns is to be expected. But historical analysis shows that—over time—the index annuity will out-perform savings accounts, CDs, T-bills, bonds, and even securities like stocks and mutual funds.

If you ran illustrations for the client when you were initially presenting the index annuity to them, pull out a copy and show it to them as a reminder. I say something like this… “Remember when we initially were considering an index annuity? We looked at these illustrated projections and there were a few years in the growth projections that showed zero interest growth when the market was down. Does that ring a bell?” Then I say, “It is unfortunate that you received a zero in the first year, but that is confirmation that this asset is providing the protection you were looking for. But, over time, look at how well the index performs in the positive years.” Then I show the back-tested average returns.

For more help give us a call.

~ Greg Skogsberg


Click here for a short video about this month's issue

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