Here is a sampling of headlines from Friday, August 5 following the Dow’s 512-point drop on Thursday:
“Stocks Nose-dive Amid Global Fears” — Wall Street Journal
“Stock Market Turmoil: What to Do” — Moneywatch
“Wall Street Pummeled with 513 Point Drop” — Associated Press
"Fear Punches Dow Down 513" — USA Today
Starting to get flashbacks yet? People who still haven’t recovered from a 30% or 40% loss in 2008 just watched their portfolios suffer another double-digit loss and now they’re wondering if more is coming.
If you sold your clients a BalancedAllocation Annuity in the last few years, give yourself a pat on the back. These are exactly the scenarios you are helping your clients avoid: the fear, the uncertainty, the double-digit losses that they simply cannot recover from at this stage in their lives.
The Dow Jones has dropped 11.1% since April. The BAA has dropped 0%. At times like this the value proposition of a fixed indexed annuity is really as simple as that.
There have been some great enhancements to the BAA in the last few weeks, including an increase on the Family Endowment Rider from 4% to 5% and some great new features on the Income Advantage Calculator, including the ability to illustrate Total Benefits of Ownership.
SMS achieved its highest annuity sales total ever in July and we’re on pace for another record month in August. Bottom line: the BAA story is resonating with clients right now — now get out there and tell it.