Not everyone of your clients are equally prepared for retirement. While some of them are fortunate to have built a nest egg that will last us through their Golden Years, others will depend on government programs for retirement income. Regardless of which side of this divide they are on, Annuities can be a powerful vehicle to help you fund their retirement dreams.

Whether it is to deliver guaranteed income to your clients and their loved ones in retirement, to protect their principle while also providing income, or to provide death benefits to their beneficiaries upon their passing, there are annuity products to meet every conceivable need. 

The short answer: Diversification. Peace of Mind. Flexibility!

Many retirees and soon-to-be retirees are concerned over the safety of their investments in mutual funds, ETFs and stocks. The gyration in the stock market is often hard to stomach for seniors entering their Golden Years. With the help of a well-chosen Annuity, one can add a layer of diversification to their retirement portfolio. 

Then, there’s peace of mind. Annuities are structured as investment vehicles that are insulated from the fate of stock market behaviour. The nature of Annuities means they will never need to worry about when/how long you’ll need to wait before they recoup losses from the next stock market crash! Their Annuity investments are sheltered from such risks.

And of course, for the soon-to-be retiree who is concerned that he/she has missed the proverbial retirement savings boat, Annuities offer good news! Because there’s no limit to how much they can contribute in Annuities, on an after-tax basis, they will have flexibility in how much they save, and will never have to worry whether it’s too late to play the “catch up” game.   

If used strategically, Annuities can be an extremely powerful retirement income planning vehicle. Here are some of the ways that our Annuity experts can help you: 

  • Use annuities as a retirement planning option: Our team of specialists will work with you to review their entire existing portfolio to determine whether Annuities are right for them. In some cases, an overexposure to other fixed-income products, like Bonds and Dividend-paying stocks, could still leave their retirement income exposed. We’ll help you decide if Annuities are the right retirement planning option for your client, 
  • Make cost-effective Annuity choices: Not all Annuities are created alike. While they may generally be a great choice for generating fixed-income in retirement, the cost associated with producing such income could sometimes be high. Our Annuity specialists are familiar with the entire Annuity landscape, and can help identify the most cost-advantaged Annuity investments for your client,  
  • Receive tax-advantaged income: We help clients manage their tax liability through prudent product selection. Some annuities, like tax-deferred index products, enable investors to receive tax-deferred income now – by not including such income to determine their current tax liability. Subsequently in retirement, when they might be in a lower tax bracket, their  annuity-dependent income will not be a source of significant taxes
  • Build flexibility into your retirement planning objectives: We do this by choosing annuity products that can easily be switched between investment portfolios without the risk of triggering associated taxes. So, if their investment objectives change during the investment horizon, you can effortlessly switch to a different annuity to support their new objectives, without fear of being saddled with a huge tax liability

*There is a surrender charge imposed generally during the first 5 to 7 years that you own the contract. Withdrawals prior to age 59 ½ may result in a 10% IRS tax penalty, in addition to any ordinary income tax. The guarantee of the annuity is backed by the financial strength of the underlying insurance company. Investment sub-account values will fluctuate with changes in market conditions.

*Investors should consider the investment objectives, risks and charges and expenses of the variable annuity carefully before investing. An investment in a variable annuity involves investment risk, including possible loss of principal. Variable annuities are designed for long-term investing. The contract, when redeemed, may be worth more or less than the total amount invested. Variable annuities are subject to insurance-related charges including mortality and expense charges, administrative fees, and the expenses associated with the underlying sub-accounts. The prospectus contains this and other information about the variable annuity.Contact the issuing firm or your registered representative to obtain a prospectus, which should be read carefully before investing or sending money.