Why clients should explore RILAs

Why clients should explore RILAs amid shifting investing goals and markets

Financial goals and challenges vary widely from client to client. In fact, any client’s main financial concerns can change as their life progresses from one stage to the next. They might start off focused on accumulation and shift to value income generation as retirement nears. Down the line, that same client may prioritize leaving a financial legacy for loved ones.

Or, one client may want to address all three areas at once.

Wide-ranging-and often shifting-client needs, combined with the risk associated with volatile markets and generally low returns on conservative investments, highlight a need for adaptable investment strategies. One solution that deserves close attention is the registered index-linked annuity, or RILA.

Investors today are often concerned about major disruptions and their impacts on markets. They want to grow their portfolios, but wild market swings may hold them back. They just might not have the stomach for the potential downside risk that comes with market participation.

Financial professionals need strategies that enable clients to take advantage of market growth, but also help safeguard against major loss when markets fall.

It’s all about finding the right balance between upside potential and downside protection. For some clients, a RILA may be the right fit to help clients appropriately address risk so they can confidently invest in growth opportunities they might otherwise avoid due to risk.

What is a RILA?

Registered index-linked annuities are emerging as a useful solution for many retirement investors. A RILA is a deferred annuity that combines characteristics of fixed index annuities and variable annuities to offer growth opportunities while helping to limit downside risk. They are are part of a highly individualized strategy that balances growth potential and protection. Clients can select from buffers, floors, a declared rate account, or a combination of these options. They receive interest linked to the performance of their selections over one-year or six-year terms.

Because many RILAs allow for investment growth without the burden of contract, administrative or upfront fees, it can be a cost-effective solution for clients looking to maximize their retirement savings. With contract value accessibility in times of critical need or health hardships and death benefit protection for the policyholder’s loved ones, clients choose to round out their portfolios with features that traditional investments just don’t offer.

Some Annuities are designed to guarantee lifetime income while growing a client’s investment – an important consideration for clients concerned about whether their retirement savings will stand up to longevity risk, inflation and their future expenses, like healthcare costs.

With many RILAs, clients choose their account allocations linked to the performance of their selected market indexes.

Clients may be adjust their comfort zones , enabling them to adapt and respond to changing market conditions or personal circumstances. In addition, the RILA may offer a Guaranteed Lifetime Withdrawal Benefit to help ensure they won’t outlive their savings, and a return of purchase death benefit can help them leave a legacy for those they care about most.

Diversification, risk control and protected income are more important than ever

As economies become increasingly complex and people live longer lives, it’s increasingly important for financial professionals to help clients find ways to protect and secure their financial futures.

SOURCE: Article from TruStage


    Planning for retirement is a responsibility that should be taken seriously, and choosing the right retirement annuity can be a prudent decision. Retirement annuities, acting as personal pension plans, provide a guaranteed income for life, bringing a sense of financial security and stability to retirees. As with any financial decision, it is essential to consult with a qualified financial advisor to assess individual needs and make informed choices. By harnessing the power of retirement annuities, individuals can confidently embrace their well-deserved retirement, knowing that their financial future is in capable hands.

    Talk to Hazard & Siegel when you need a comprehensive lifetime financial solution.

    Contact us today at 315-414-0722, or visit our personal investing page.