The ability to retire: the ultimate dream Americans spend their whole lives working toward. A time free from financial worry, a time when they’ll be able to do whatever they want, whenever they want … yet market volatility can create a type of risk that can derail an unprepared retirement income portfolio. That risk is known as the Sequence of Returns risk.
Don’t get me wrong, it’s highly important for your clients to understand the impact the Sequence of Returns risk can have on their investments and retirement income vehicles leading up to retirement, but it’s even more important for them to understand what can happen to the value of their accounts when they begin taking withdrawals.
That’s where the sequence of returns calculator comes into play. The sequence of returns calculator is a tool you can use to show clients hypothetical scenarios of what may happen to their money over a certain time period, using different withdrawal percentages and different vehicles.
All you have to do is type in certain values and the calculator will generate market downturns and gains, and how they will affect the retirees account value while they are taking withdrawals. This visual tool is a great way for you to explain the importance of certain products to your clients and is also a great lead-generation tool, as clients will have questions about what they can do to protect themselves from volatility, which is where your guidance comes in.
If the sequence of returns calculator sounds like something you would be interested in learning more about and/or having as your own resource, contact your sales consultant at 800.992.2642 and attend our upcoming webinar, Protecting Your Clients from Sequence of Returns Risk on Thursday, May 26.
- How to make your clients aware of the dangers of Sequence of Returns risk.
- How to show the benefits of a fixed indexed annuity.
- How the sequence of returns calculator can help generate new clients.
FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC.
CP-0771 – 2016/05/10