1. Positioning Fixed/Indexed Annuities
GROWTH
SAVINGS

2. Common Objections to Fixed/Indexed Annuities:
Not Enough Education – Products are Complicated
Variable Annuities/Other Investment Options Provide More Earnings Potential
Uncertain as to Where it Fits
Low Rates/Limited Upside
Market is Going Strong

3. Common Objections to Fixed/Indexed Annuities:
Not Enough Education – Products are Complicated

4. Crediting Interest: Understanding the Cap
Account Value
Start
End
5.00% Cap
1500 =
16% Increase
5.00% Growth
$105,000
Crediting Interest: Understanding the Cap
Account Value
Start
End
4.00% Cap

5. Indexed Annuity: Locking in Interest
Account Value
Start
End
5.00% Cap
1500 =
16% Increase
5.00% Growth
$105,000
Account Value
Start
End
5.00% Cap
1740 =
13% Loss
0% Growth
$105,000
Indexed Annuity: Locking in Interest

6. Annual Reset: Resets Index Price Each Year
Account Value
Start
End
5.00% Cap
1500 =
16% Increase
5.00% Growth
$105,000
Account Value
Start
End
5.00% Cap
1740 =
13% Loss
0% Growth
$105,000
Account Value
Start
End
5.00% Cap
1513 =
9% Increase
5.00% Growth
$110,250
Annual Reset: Resets Index Price Each Year

7. Positioning Fixed/Indexed Annuities in Client Portfolios
Common Objections to Fixed/Indexed Annuities:
Variable Annuities/Other Investment Options Provide More Earnings Potential

8. Positioning Fixed/Indexed Annuities in Client Portfolios
Variable Annuities/Other Investments vs. Indexed Annuities
Perception: Variable Annuities provide much more upside potential than Indexed Annuities while providing safety through withdrawal benefits
Comparing 3 Parts:
Growth: How Interest is Earned Safety: What Methods are Used in Protecting Assets Income: Withdrawal Benefits

9. Positioning Fixed/Indexed Annuities in Client Portfolios
Upside Potential
$100,000 Premium
Variable Annuity
S&P 500  16%
Subtract Fee = 3%
Hypothetical Value $113,000
Indexed Annuity
S&P 500  16%
Limited by Cap = 5.00%
Hypothetical Value $105,000
Value “Locked-In”

10. Positioning Fixed/Indexed Annuities in Client Portfolios
Safety: Principal Protection
$100,000 Premium
Variable Annuity
S&P 500  13%
Subtract Fee = 3%
Hypothetical Value $84,000
Indexed Annuity
S&P 500  13%
No Fee = 0%
Hypothetical Value $100,000

11. Positioning Fixed/Indexed Annuities in Client Portfolios
Safety: Withdrawal Benefits
$100,000 Premium
Variable Annuity
S&P 500  13%
Subtract Fee = 3%
Hypothetical Value $84,000
Indexed Annuity
S&P 500  13%
No Fee = 0%
Hypothetical Value $100,000
Safe = $5,000/Yr. as Income
Safe = $100,000

12. Positioning Fixed/Indexed Annuities in Client Portfolios
Safety: Withdrawal Benefits
Withdrawal Benefits Do Not Protect Principal
May Provide an Income that the Client Does Not Need or May Not Desire
Step Ups are Often Confused with Growth
Potential Portability Issue (Partial W/D or Transfers):
Rates Up, Market Down

13. Positioning Fixed/Indexed Annuities in Client Portfolios
Common Objections to Fixed/Indexed Annuities:
Uncertain as to Where it Fits

14. Positioning Fixed/Indexed Annuities in Client Portfolios
GROWTH
SAVINGS

15. Positioning Fixed/Indexed Annuities in Client Portfolios
Investment Options
Variable Annuities
Mutual Funds
Bonds
REITS
Stocks
Alternative Investments
GROWTH
INCOME
GROWTH
SAVINGS
SAVINGS

16. Positioning Fixed/Indexed Annuities in Client Portfolios
Savings Options
Savings Accounts
Money Markets
CD’s
Fixed Annuities
Indexed Annuities
GROWTH
SAVINGS

17. Positioning Fixed/Indexed Annuities in Client Portfolios
Income Vehicles
Variable Annuity
Indexed Annuity
SPIA
REITS
Bonds
Portfolio Withdrawal
INCOME
GROWTH
SAVINGS

18. Positioning Fixed/Indexed Annuities in Client Portfolios
Income: Comparing Withdrawal Benefits
Very Similar in Design
Both Provide Guaranteed Income
Variable Annuity Provides for Step Ups
Indexed Annuities Provide Higher Guaranteed Income
No Guaranteed Growth

19. Positioning Fixed/Indexed Annuities in Client Portfolios
Indexed Annuities May Fit When the Goal is to:
Protect Principal from Loss
Lock in Market Performance
Provide Higher Earning Potential Than Other Savings Vehicles
GROWTH
SAVINGS

20. Positioning Fixed/Indexed Annuities in Client Portfolios
Indexed Annuities May Fit When the Goal is to:
Protect Principal from Loss
Lock in Market Performance
Provide Higher Earning Potential Than Other Savings Vehicles
INCOME
GROWTH
SAVINGS
4. Provides High Guaranteed Income Strategy

21. Positioning Fixed/Indexed Annuities in Client Portfolios
Common Objections to Fixed/Indexed Annuities:
Low Rates/Limited Upside
Competes Well With Other “Savings” Vehicles:
Best Local 5 Year CD: .75%
Goal Is Not to Lose
Market is Going Strong
Great Opportunity for “Financial Health” Discussion
Correction Protection
Market is Going Strong: Segway to Financial Check-Up

23. The product is not sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s makes no representation regarding the advisability of investing the in the product. The S&P500 Index does not reflect dividends paid on the underlying stock.
** Surrender charges may apply for early withdrawal.

24. Common Objections to Fixed/Indexed Annuities:
Products are Complicated – Keep it Simple
Variable Annuities/Other Investment Options Provide More Earnings Potential – Yes They Do
Uncertain as to Where it Fits – Safe Money Alternative
Low Rates/Limited Upside – Compared to What?
Market is Going Strong – Great Time to Talk!

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Phone
address