How To Sell FIAs in a Rising Market

10% bonus idea

Ask your clients, “Do you think the Dow Jones Industrial Average (DJIA) is going to go up to 18,000 points this year?” Then ask, ”What if you could be guaranteed an 18,000 point Dow with a 10% bonus on your money and never have to go backwards?”

The Tortoise vs. The Hare

Remind your clients of this quote: Moderate gains over an extended period of time will always outperform a volatile market.

FDIA’s are an asset class to themselves

Ask your client, “Which one of your current assets can protect you from ever experiencing a loss from the market guarantee income that you will never out live, and lock-in your gains every year?”

Our market is your market

We don’t give up on the market. In fact, we are dependent on the market for our growth, but we access that growth in a different way, allowing us to participate in the market without owning it.

How Indefinite is this Bull Market?

The average bull market lasts 3.8 years with only 5 markets rising for more than 4.5 years in a row. We are currently well into year 5. The risk for recession is getting exponentially higher.

Up to a 24% return on monthly caps – which is incredibly rare

With current monthly caps on products, our clients can still participate in upwards of 24% growth per year (2% cap on the monthly point-to-point allocation). Rarely do we ever see that type of movement in portfolios without significant risk.

You don’t have to sell the investment vehicle you are in

Most people are in love with the investment vehicles they are in because those vehicles are making them money. Because of this, your client may not have the discipline to sell the investment vehicle when they need to!

Ask the client, “what has your advisor has done to make sure that they don’t make the same mistake twice?”

OK, so you lost money in 2008. Now your account is back up, maybe even to an all-time high. What has your broker done to ensure that this doesn’t happen again? Buy and hold and you’ll be broke when you’re old.

Why don’t we learn from history?

Warren Buffet says that what we have learned from history is that we don’t learn from history. This market is nothing new. Sure, it has its nuances, but ultimately it will go down again, and we are kidding ourselves if we think that we are safe from the inevitable market correction.

All We Need is 30% of the Market Gain

Dalbar’s research has consistently shown that the average investor captures somewhere between 28-33% of the market’s upward movement (on average). Even in a low-cap environment, annuities can keep up with, if not outperform, the average investor with no anxiety.

 

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