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Annuity Sales Training: A Retirement Plan for Living, or Dying?

Here is a great article debunking the myth that a 4% withdrawal rate is a solid rule for a lifetime income plan.  It amazes me that variable brokers use a 4% non-guaranteed withdrawal rate when our lifetime income benefit riders pay out at least 4% on a guaranteed basis, and usually much more.

4 Percent Withdrawal Rate May Be Too High for Today's Retirees - CBS MoneyWatch

One of the keys to being a successful annuity agent is the ability to get your client to understand that there is a problem with their current situation.  If they think nothing is wrong then there is nothing you can do for them.  Here is a sale presentation to go along with this article that will help you show your client that 4% that is not guaranteed is no plan at all.


Annuity Sales Presentation: A Retirement Plan for Living, or Dying?

You, “Mr. Jones, do you want a retirement plan for living, or for dying?”

Client, “What do you mean?”

You, “You have been told that you need a pile of money that you will draw off of in the hopes that you will only live to a certain age so you won’t run out of money.  In other words, your financial plan is based on you dying by a certain age.  It’s a plan for dying, wouldn’t you agree?”

Client, “Yes, I never thought of it that way but I guess you are right.”

You, “Mr. Jones, one of the major problems with plans for dying is that the closer you get to the age you are suppose to die the more stress you will have because of the fear associated with outliving your plan for death.  In fact, it might even be possible that you will not outlive your plan for death because of the stress it causes the closer you get to the age you are suppose to die.  Can you imagine how stressful running out of money would be?

Client, “Yes, that would be terrible.”

You, “Mr. Jones, I want you to know right now that I don’t work with death plans.  I specialize in plans for living!  If I could show you a way that you would never outlive your money so you could plan on living as long as possible, would you be interested in that?”

SOLD: Sell the concept, not the product.

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