Secure Their Financial Future with Growth and Protection

Volatile markets can stir up a lot of emotions and concerns for investors—and they may react in ways that spell trouble for their investments. Annuities are just one tool that could help clients make the most of their savings while adding some stability and guarantees across market cycles.

This year, volatility seems to be the name of the game. Even for our clients who are seasoned investors it can be hard to see their portfolios take hits, and they want to take swift action to make it all better. But this is exactly the sort of reaction and behavior that financial professionals want to help their clients avoid, and why they emphasize the value of a diversified holistic financial plan. 

We’re seeing a lot of confusion in the markets, with even “safe havens” like long-term bonds seeing devaluation and instability. It’s natural for investors to feel confused and uncertain about what their next steps should be. How can you help your clients feel more confident that their financial plans can withstand the current market conditions?  

When you work with clients on their financial plans, you balance the long- and short-term goals they have for their money. Solutions that can provide stability in any market cycle may look even more attractive when the markets are sending out confusing signals. We already know emotion-driven portfolio decisions can do more harm than good over the long term. This is why we like to talk about ways to save, grow and protect within the guardrails of a financial plan.  

Your pre-retiree clients in particular may be feeling stressed out by the market uncertainty and volatility of the past months, and may want to dial down risk as much as they can to protect what they’ve already saved. But the decade before retirement can be the most important timespan to maximize earnings in a portfolio. What’s a client to do when their gut is saying “no” to risk, but their retirement success depends on long-term portfolio growth? 

Product solutions that offer guardrails could be an opportunity for these clients seeking stability in their investment mix. The Registered Index-linked Annuity (RILA) offers some downside protection during down markets, while allowing for potential growth in rising markets. Although it’s not always the first choice to consider using annuities as a true alternative to traditionally conservative asset classes (e.g., fixed income), there are some compelling reasons to think about how an annuity solution like a RILA could be an alternative for clients, especially those nearing retirement. 

Some of the key features of RILAs in a comprehensive financial plan can encompass:   

• Growth: A key feature of an indexed annuity such as a RILA is its ability to capture some of the market upside for clients. Although RILAs limit growth potential, they also provide some downside protection in down markets. 
• Protection: RILAs can offer some downside protection from market losses and help limit how much a client loses in a down market. RILAs often offer a guaranteed return of the purchase payment for beneficiaries even when the market is down. 
• Tax efficiency: The credited interest in a RILA are tax-deferred and are taxed upon withdrawal. This can be attractive for clients who expect to be in a lower tax bracket in retirement than they are in their working years. 
• Wealth transfer: Many clients only consider annuities as a retirement income solution. But annuities, including RILAs, offer a way to transfer wealth outside of probate by passing directly to named beneficiaries. 

For some of your clients, not losing money is their top concern. For others, it’s about building savings for future needs like retirement. And for some, the ability to easily share that wealth across generations is most important. All of these goals can be at risk due to market volatility, and traditional investment vehicles can’t protect for market losses.  

By providing alternative options that can both tap into the markets but can also provide some downside protection from the markets, you are helping all of your clients stay focused on their plans and not on day-to-day market moves and the emotions that come with them. 

Help educate your clients about how a RILA can fit a variety of needs before and during retirement. 

DISCLOSURES 

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Annuities are issued by Symetra Life Insurance Company, 777 108th Avenue NE, Suite 1200, Bellevue, WA 98004-5135. Products, features, terms and conditions may vary by state and may not be available in all U.S. states or any U.S. territory.  

Neither Symetra Life Insurance Company nor its employees provide investment, tax, or legal advice or endorse any particular method of investing. Individuals should seek appropriate professional advice before making savings and investing decisions.