I recently was invited to attend a working session with a major annuity provider. Also in attendance were about 20 of the other top marketing groups. My requests for improvements and new designs were in the immediate annuity area. My peers started referring to me as Mr. SPIA. I wear this badge with honor. Pick up a dictionary, look up the word annuity. If you have read many of our industry publications lately, you have seen an emphasis on immediate annuities. Why? Because people need income! Whether it is for a lifetime or a period certain income, for most seniors income has dropped in a major way. Think about CD rates from 3-4 years ago compared to today. By using annuities you can double or perhaps triple someone’s income. The SPIA market is still underserved by insurance agents and brokers. I can promise you that if we don’t market these ideas, we will see banks and even the stock brokerages selling income products, which are really in our field. Now is the time for SPIAs – and it is only the start. Baby boomers are getting older and income will be their concern. Call us at FSD to discuss the opportunities – visit us at fsdfinancial.com for articles and statistics on why SPIAs are so important to your practice. Learn, the necessary and varied uses for SPIAs.

That can’t be right – can it? Well, actually it is. I have always been suspect of bonus products. Having spent a good part of my career designing annuity products, I look for the "gotchas" in these products. The Bonus 555 credits 15% to a side account and 5% to the client account. In years 8,9, & 10 the side accounts plus interest is added to the client account. So in years 8,9 and 10 an 8% interest minimum will be added to the client account. What this means is that even if rates don’t go up over the next 10 years (clients know rates are going up) the minimum yield that the 555 can pay is 4.71% for the 10-year term. This assumes a 3% renewal for years 2 – 10. If renewals are higher the yield goes up. The Bonus 555 has a declining surrender charge and no MVA. Another great feature to the Bonus 555 is its liquidity feature of 100% interest at anytime. The liquidity feature allows the client to maximize yield if interest rates substantially increase in the marketplace by moving to a higher yielding annuity. This product has a good yield with upside potential and a fair commission. $100,000 deposit will grow to a minimum of $158,596. In the 8th year $35,594 is available for a free withdrawal/transfer, that's 26%! This a flexible premium product with $2,000 minimum additional deposit.