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• Currently, and historically, fixed annuities have outperformed certificates of deposits (CD's) due to higher interests rates and tax-deferred accumulation. And more importantly, most of your clients have them. Even though the stock market has grown to record levels, there still exists swarms of ultraconservative investors out there. From February '94 to February '95, deposits made towards CD's grew 25% to $117.2 billion.

• Equity-Indexed Annuities (EIA) are very innovative fixed annuities which allow your clients to participate in the upside of the stock market, yet they protect your client's principal from stock market risk. The basic concept is simple. If the U.S. stock market (the S&P 500) grows in a given year, your client earns a percentage of that growth. But if the market performs poorly in a given year, clients simply earn 0% for that particular policy year. Further, the original deposit and any interest credited in previous EIA policy years are preserved no matter what the S& 500 does. Combine this with tax-deferred accumulation and you've got a sale! Call us if you would like to know more.

• Fixed Annuities from our top-rated insurance carriers are among the safest savings products in the world. FSD canvasses the market and carefully selects the strongest and oldest carriers whose past performance and investment philosophies meet our rigorous expectations. Canada Life, for instance, has maintained an impeccable investment portfolio since the 1800's and backs your clients' deposits with $19 billion in admitted assets and over $2 billion in pure surplus. As for penalty-free access to your funds, many of our carriers allow for immediate, penalty free annual withdrawals of up to 10% of your accumulated funds. Others offer interest-only withdrawals or systematic withdrawals of a specified amount. And after a few years, depending on your policy, you have 100% access to all your money! (Note that withdrawals prior to age 59 1/2 may be subject to a penalty tax.)

• When your clients elect to receive an income from their retirement plan, their plan is merely buying a SPIA to fund the income stream. As a favor to your clients, try to beat that payout amount with a better rated carrier by calling FSD. Just give us (1) the dollar amount they are entitled to if they choose a lump-sum withdrawal option, (2) the annuitant's and his/her spouse's dates of birth, (3) the state of residence, (4) the same payout options (e.g. Joint & Survivor with 10 Years Certain) the pension plan is using, and (5) the dates of deposit and first income payout. In almost all of these, if your clients annuitize within the pension or 401(k) plan itself, they will receive a smaller monthly check than if they had rolled their money into a SPIA. (And talk about making a large sale, our brokers average case size $200,000 in this scenario.

• If your clients need a monthly income and have recently received a large cash sum from, let's say, a life insurance policy, then a Single Premium Immediate Annuity (SPIA's) is their best guaranteed option. They can be guaranteed monthly payments for life or for a particular time period. In the case of death, clients can insure that these payments will continue to a named beneficiary. And if they're concerned about inflation, we can even build in an inflation factor that increases their payments from 3% to 6% each year. There's nothing uncertain about a SPIA. In fact it's a rather boring product, but it is one that your clients can rely on, guaranteed!

• Plain and simple, when your clients purchase a lifetime SPIA they cannot outlive their savings, GUARANTEED. So there's no reason to worry about volatile market fluctuations and depleting investment principal because they can be assured that the first of every month there's a check for X dollars waiting in their mailbox or transferred to their account. No unwanted surprises!

• If you need to fund a regular expense for a certain period, get a quote on a period certain SPIA. For example, let's say you are committed to provide $600/mo. for the next 10 years. This problem can be solved by issuing a 10-Year Period Certain SPIA contract with a one-time premium of $56,722.89. This is far less expensive than the $72,000 ($600 x 12 months x 10 years) you'd pay otherwise. In this case you transfer your financial obligations to the insurance carrier because the carrier issues and mails the checks directly to the payee, while you still maintain ownership of the annuity. Plus there's no administration hassle of writing check every month.

• You can avoid the administration expenses, market risk, and worries of making periodic payments to your former employees by purchasing a SPIA. Recently two counties in Indiana did just this. They had been paying several retired county employees retirement benefits, so they simply purchased guaranteed SPIA contracts to transfer the hassle and liability off their books.

• For many reasons your clients may want to give monetary gifts to minors, and upon 18 years of age the recipient will have authority of their own funds. Unfortunately it's common knowledge that most young adults have no background and training in handling large sums of money. Consequently, they often quickly dissipate their entire sums. Deferred annuities are useful here because they posses enough penalties that can deter them to cash in the annuity, yet the annuities still posses mechanisms that enable annuitants to access cash for college, emergencies, etc. SPIA, on the other hand, may also be appropriate because they insure a steady stream of monthly income no matter how spendthrift the youth is.

• Ever wonder who buys annuities and why? Well, it's just your average American. According to a Gallup Organization survey, the average owner of a "non-qualified" annuity is 66 years old, retired and has an annual household income of less than $75,000.

• The survey, the fifth performed by Gallup for the Committee of Annuity Usurers since 1992, also found that slightly more females than males own annuities.

Since 1992, the number of female annuity owners has been rising, while male owners have dropped.

• You might say the average annuity owner is your average American. The survey's results closely resemble the 1996 Statistical Abstract of the United States, which found 86% of Americans earn less than $75,000 per year; and 80% of annuity owners surveyed had annual household incomes of less than $75,000.

57% of annuity owners have never graduated from college.

• Annuities have long been used as a way to save money for retirement. 85% of those surveyed said they're using their annuity savings for retirement, while others said the money is being used to keep from becoming a financial burden on their children or to build up an estate for their heirs.

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