Kevin E Vozar Chief Operating Officer
	Income and Liquidity

Many of my articles center on “consumer centric” sales concepts. I am a firm believer in a fiduciary standard for advisors, whether they be insurance-licensed, IAs, or full-blown registered representatives. Always do what’s right and always offer solutions that are in the client’s best interest! With this in mind, what are today’s retirees really looking for in their retirement savings? How about:

• Safety of Principal
• Guaranteed Income
• Reasonable Rate of Return
• Liquidity

These probably rank in the top five of most retirees’ needs, wants, and desires for their retirement nest egg. Many advisors focus only on the first three. Sure, we talk about penalty-free withdrawals, but at the end of the day, do consumers really appreciate having access to only 10% of their money? Something always comes up and they want MORE, and when told MORE will cost them penalties, they get MAD and COMPLAIN – don’t they?

What if you could show your clients how they can have their cake and eat it too? They can have:

• A 10% upfront, non-vested bonus
• Strong 8% guaranteed income rider
• Bailout
• Liquidity

Think your clients would like something like this?

Here’s how it works:

Say we have a person with $200k of IRA money somewhere. We put $100k in AE’s Bonus Gold with the 8% income rider. The client gets credit for $110k, and it defers until he or she wants to trigger the income stream.

We put the other $100k into Great American’s “Safe Return” annuity. This product offers 100% return of premium AT ANY TIME – with no penalty! It offers a full PENALTY-FREE bailout in the event their rates ever drop more than 50% on their AP2P or MA crediting methods. A 10% FREE OUT of the AV IN YEAR ONE, and, oh, it’s only a 10-year product.

So in year one alone, of the client’s $200k, he or she has immediate access to $100k WITH NO PENALTY. In year two he or she has access to not only the $100k from GA, but 10% of the AE policy as well.

So what have you just provided your client?

1. Safety of Principal
2. Guaranteed Income
3. Reasonable Rate of Return. If the Safe Return product goes below the bailout rate, the clients can take their money PENALTY FREE and look at another product that MIGHT have a little better performance.
4. Liquidity. You’ll never have to tell clients that to access more than 10% of their money will trigger a penalty…you can tell them their principal in the Safe Return is available AT ANY TIME and FOR ANY REASON!

If you would like to learn more about either of these products or the concept in general, please contact your VP of Advisor development, or give KVO a call at 866-907-4275, ext. 226, or email me at KVozar@CRProducers.com.

Until next time, have a great September, and if you need anything, please don’t hesitate to give me a call!