Are you thinking about getting into annuity sales? Or perhaps you just need a little motivation in the annuity department. I've got you covered.
I've spoken to several of our top annuity agents to bring you stories of unforgettable annuity sales. Not every annuity is going to be memorable or unique, but every once in a while, we are blown away with what comes down the pipe.
If you need help getting started with annuities, please schedule a call with me!
About 6 years ago, I had a client with about $10,000 who was a good candidate for an annuity. She was in her 70s, so I wrote her a 5-year MYGA and she was happy with that.
Well, those 5 years were up and it was time to look at that annuity, now worth $11,000 and some change, to see if we should renew it or do something else. This client, now 80 years old, lives out of town, and to be honest, I wasn't even sure if it was worth it to go out my way for such a small annuity.
But out of habit and doing the right thing, I made the drive to see her. Her husband had died 6-8 months prior, so I ended up asking her if she had anything else going on that we should talk about or that I could help her with.
It turns out this client had $2.5 million scattered all over the place! She had a ton of CDs, none of which were making more than 0.2%. She had a 401(k) she'd never rolled over that was still sitting at State Farm, several bank accounts... there was so much going on that I can't even recall all of the details. Just trying to organize it was a ton of work.
I ended up taking all of the paperwork back to the office so I could create a game plan and circle back with her.
We ended up cashing in all the CDs to get them into her checking account. Then, she wrote some checks (there were 5 different banks involved). It was a process, but I am so grateful for the opportunity.
In the end, I cannot believe how much we improved her situation. We left $100,000 liquid in her checking account, she will be taking $65,000 out of her annuities annually for RMDs, she has no debt, and her car is almost brand new.
And all the excess money she doesn't need is now going to work for her. Just consolidating it all made a huge difference for her! We did two separate annuities, because half the money is pre-taxed and half is post-tax, and you can't blend the two.
But having two Fixed Index Annuities (FIAs) has greatly simplified and clarified her life, and she is financially golden.
Agent: Jim Kaspar
I met with a 74-year-old retired carpenter and a 74-year-old retired bookkeeper who had approximately $1 million in checking accounts, savings accounts, money markets, and maturing CDs. They also had mutual funds, ETFs, and stocks with a broker who provided no help or representation.
In addition to all of their savings and investments, they had Social Security and pensions that far exceeded their monthly and annual expenses.
I was astonished to find out that their average interest rate was 0.008% with their highest rate at 0.022%. In 2021, their 1040 showed their total interest and dividends was just $1,768!!!
They could likely have nursing home stays in their future, and their daughter was involved in all the discussions. They all agreed they wanted guarantees for these funds.
I showed them a 5-year fixed annuity with a 3.5% interest rate. This annuity allowed them to withdraw 10% per year with no penalty, and all surrender charges would be waived for an extended nursing home stay.
They decided to deposit $800,000 from their cash accounts and split it between the Mr. and Mrs. They kept telling me how bad they felt since they had not done this sooner. We talked about how they may be able to help their friends by sharing what they learned.
At the beginning of my career, I sold a client a Med Supp but didn't really bring up retirement since I didn't really offer this service thoroughly yet.
Well recently, he asked me during an annual review if I handled retirement. I was so glad he did, because it turns out he had a mixture of IRA and 401(k) money totaling about $400,000!
I recommended a Fixed Index Annuity (FIA) product, which offers principal protection while still having the ability to gain interest above a typical money market, CD, or other low-interest account.
His objections were common ones: length and withdrawal options. I find it's best to bring these concerns to the forefront of our conversation. The product I ended up selling offers withdrawal capability and an income rider. It also had full accessibility during the most unfortunate health circumstances.
The client is now super pleased with his decision to roll over his IRA and 401(k) into a FIA. In markets like these, I have found many of my annuity clients reach out to me to check on their accounts, and they're relieved to find their principal is still there.
Always ask your clients if they are satisfied with their current retirement plan! Needs are always changing, especially in a volatile market as we have seen in recent years.
Not every annuity sale is going to be huge or memorable, but just keep milking the cows. You'll be surprised what comes your way.
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