Never before has there been a time when our safe, secure, and insured solutions have been more relevant!
We officially ended an 11-year bull run on Tuesday, and on Thursday, we saw the worst drop in the stock market since 1987. Recently, Bloomberg Economics calculated a 53% of a recession within 12 months, the highest probability since the 2008 Great Recession. JPMorgan’s John Normand predicts an 80% chance of recession and suggests we may already be in one. The VIX index (also referred to as the fear gauge) which measures the implied volatility of the market at the highest level since 2008. Major banks and investment firms have reduced their S&P 2020 forecasts suggesting there still may be more stock market losses ahead.
That is why it is our firm belief that there has NEVER been a better time to be in our business
Whether your clients and the American public know it or not, they need our products to secure a healthy, dignified, and protected retirement. After the last two weeks, even the most steadfast believers in equities would have to agree, in times of uncertainties, guarantees are king. At LifePro, our mission has been to build, keep, and transfer wealth. We’ve done this successfully for over 34 years by using proven, safe, and effective strategies to minimize risks and help clients achieve their financial goals. One of the tools we’ve used in our planning process is fixed indexed annuities, which provide a base level of protected income equal to our client’s essential expenses. In times like these, adding an annuity to your client's overall financial plan will help stop the bleeding, eliminate the dangers of future stock market corrections, provide upside growth in the stock market, avoid long stock market recoveries and provide a retirement income they will never outlive. Think of an annuity as an insurance contract for your clients retirement income. We insure homes, cars, boats, and even flights, why wouldn’t we ensure something as important as the income needed in retirement.
Act Now, Act Fast!
Here’s the catch, we have a limited amount of time to capture the maximum amount of benefit. Our insured solutions will always be effective but we all know what is happening to interest rates. On Monday the yield curve historically fell below 1% as investors exited risky equity assets and sought out safe havens such as Treasuries. Annuity products are priced based on the prevailing interest rate environment as insurance companies use fixed income instruments to back the guarantees of their products. Lower interest rates mean reduced benefits for the annuity purchaser. The good news is that insurance companies tend to announce rate and product reductions weeks after interest rate changes. Fortunately, we have a window of time in which to lock in today’s rates and benefits before they are almost certainly reduced in the coming weeks.
Regain Market Losses!
Many companies have premium bonuses that are either applied to the account value or an income account value. These premium bonuses can help recoup some of the losses that your clients may have suffered over the last few weeks. Savvy clients resist exiting the market at the wrong time for fear of missing out on future gains. A bonus based annuity can give them a gain almost immediately and alleviate the need to stay in the market for years and years in order to hopefully regain the losses suffered over the last few weeks.
Don’t Let Fear Paralyze Your Clients
Your clients and prospects may be scared and feel powerless against the uncertainties that come with the recent economic environment. Past economic downturns have shown that fear may cause paralysis and prevent rational decisions to improve financial health. Help your clients take back control of their finances. Help empower them to make the right decisions to protect, grow and transfer their nest egg. Help them understand that you’re here to help.
And LifePro is Here to Help You!
LifePro has the resources, knowledge, tools, and support to help you protect your clients today. Click HERE to see our most recent Money Script Monday and feel free to share it with your clients. Contact your Field Support Representative now at 1.888.LifePro (543-3776) and have us build real-life solutions to your client's real-life challenges today.
Thank you for your business, your partnership and your trust!