Advisor Today - March/April 2015 - (Page 30)
By James E. Fox
The Gift of a Lifetime
Let's take the gift of a lifetime income annuity and give it to our clients today so that their future will not
be a mystery.
was struck by a reaction from a
recent client who was so thankful
that I could help him achieve his
retirement "magic number" that he
became teary-eyed. With his wife
holding his hand, he asked me:
"How can I ever repay you?" It was
then that I realized how important
of a position we have been placed in
to help others. As our industry has
evolved, we have taken on greater
responsibility to make sure we do
right by others through adhering
to ethics and acquiring as much
education as we possibly can.
After being in the financialservices business for over 25 years,
I've come to really appreciate what
we do and how we do it to the point
that I am now mentoring others in
our business. One of my platforms
for training others centers on the use
of lifetime income riders. The key
word that I stress to all in our mentor
program is, "lifetime," because it
gives peace of mind to seniors who
fear outliving their money.
I love the ad about the professor
who is conducting a study for a
large insurance company and asking
people who is the oldest person they
know, and the commercial that has
people pulling the ribbon until their
money runs out. Those commercials
portray exactly what your clients
fear: running out of money.
Lifetime income annuities
Lifetime income annuities may not
be a good fit for all, but for those
who have them, they are wonderful
supplements to their Social Security
and pension payments. As we sell
to our clients, we need to pay close
attention to the suitability questionnaire, because some people don't fit
the criteria of risk that insurance
companies want to take on, owing to
the possibility of a customer needing
30 ADVISOR TODAY | March/april 2015
The next time
proud of what
you have done
for your client.
full access to his money if there's not
enough liquid cash on hand.
But for those consumers who do
qualify, there are many options that
you can help them choose, such as
bonuses, roll-up rates, company ratings,
cap rates, participation rates, spreads,
liquidity needs, surrender charges,
withdrawal options, fees and riders.
For these reasons, you have
to be fully educated about the
workings of the modern annuity.
Keep in mind that annuities have
been around since Roman times.
Back then, they were known as
"annua." Annuities have changed
since then, with spreads, caps and
participation rates. The modern
annuity can give clients the
guaranteed income that provides
security in older age that no other
product has offered in our lifetime,
except for life period certain
We have an obligation to make
sure guaranteed lifetime annuities are
part of our clients' financial-planning
process because of the wonderful
peace of mind these products give. I
like to call them "sleep investments or
sleep insurance, so you can sleep at
night," and so can I.
The financial-services business
has been rewarding to me and
my family because we have the
opportunity to change the lives
of people who rely on us to stay
current, educated and licensed, with
trust, integrity and service that set us
apart from other businesses.
The next time you write a lifetime
annuity product, be proud of what
you have done for your client. As
the Baby Boomer generation retires
(over 10,000 people per day), people
in this demographic need us now
more than ever.
We have the platform, and now is
the time to use it. Coach Mike Ditka
once said that "the past is history, the
future is a mystery, today is a gift,
that's why it's called the present."
Let's take the gift of a lifetime
income and give it to our clients
today so that their future will no
longer be a mystery.
James E. Fox is president of Fox
Financial Group, Ltd., located in Burr
Ridge, Ill. The company specializes
in retirement planning and estate
planning. Fox is a multiple winner of
MDRT's Court of the Table and Top
of the Table awards.
Table of Contents for the Digital Edition of Advisor Today - March/April 2015
From The Editor
The Power of Going the Extra Mile
The Advisor’s Real Job
How to Improve Your Life Sales
Lifetime Transfer Planning
I Did Not Check the Box!
How I Got a Jump Start on My Day
The Next Generation of High-Limit DI Plans
The Gift of a Lifetime
Preparing Your Clients for Retirement
LTCI Trends and Opportunities
LTCI Riders for the Sandwich Generation
Increasing Demand for Special-Needs Advice
Top Tips for Selling Annuities
Entering the 401(k) Market
Reaching Diverse Markets
NAIFA Government Relations
Sales Ideas for a Profitable Practice
Five Things Your Client Is Thinking . . .
Advisor Today - March/April 2015