Recently, an article was published bringing to light the fact that some firms on Wall Street are in the process of developing indexed annuities
. Many of you have contacted us in a panic, trying to validate the accuracy of this information.
We have indeed been contacted by two such firms over the course of the past year, inquiring about our ability to assist them in such an endeavor. At the time of contact, we declined the opportunity to assist, as we did not have any openings for retainer clients. I am happy to see that they did take us up on our referral to an alternative resource for information on indexed annuity products, and are in-fact in the process of developing these products on their own.
I want to assure you all that having Wall Street securities firms in the indexed annuity market is a good development, for the following reasons:
1. Indexed annuities will attain a greater level of legitimacy in the securities market if these players enter the indexed annuity arena,
2. Indexed annuities will experience a greater level of visibility when these firms enter the market (consider: television advertisements promoting indexed annuities, print ads for indexed annuities, etc.),
3. More advisers will be interested in selling indexed annuities, and
4. More consumers will be asking for indexed annuities.
In short, everyone may have a smaller slice of the indexed annuity pie
, but the pie is about to get bigger. This development should increase sales of indexed annuities and will help to make these products mainstream.
So rest assured, all is well. Things will be different, but they are going to change regardless of which companies offer these products. In the interim, take pride in knowing that you are offering your clients an insurance product that can protect them in the event of market downturn, while still providing the opportunity to outpace traditional fixed money instruments. Happy selling! sjm