Annuities are a very important tool when completing your clients financial or estate plan. At VMG we are committed to providing you with a large selection of the best carriers and products available in the marketplace. With a unique combination of feature such as tax deferral, competitive interest rates and income that can’t be outlived, annuities provide much needed security to your safety conscious clients.
Your VMG Brokerage Director will:
- Assist you with case design
- Help you choose the proper product (not just send you a spreadsheet)
- Obtain the highest payouts on your SPIA cases
- Make sense of the income rider puzzle
- Offer unique riders and features uncommon in the industry
- Make available regular web based annuity training
- Conduct webinars on relevant products and topics
- And so much more!
Study Finds Fixed Indexed Annuity Returns Attractive and Consistent
A recent study released by the Wharton School of the University of Pennsylvania indicates that fixed indexed annuity returns are not only much more consistent than S&P 500 index returns, but are quite attractive as well.
The study examines five-year annualized returns from 1997 to 2009, calculating industry average annuity returns based on actual returns credited by insurance carriers that offer fixed indexed annuities.
S&P 500 index returns, including dividends, are regarded as the premier measure of U.S. stock market performance. All periods studied ran from September 30 of the beginning year to September 30 of the fifth year, except for the 1997-2002 period which used a January 2 date.
The industry average annuity return exceeded 4% in all eight of the five-year periods examined. In contrast, only three of the annualized S&P 500 returns exceeded 4%, while in four of the periods, the S&P 500 index had a negative return.
Perhaps not surprisingly, the study noted that sales of fixed indexed annuities have climbed steadily since their introduction in the mid-1990’s. Recent sales levels have consistently exceeded $25 billion per year annually.
Click here to access the study.
