Demystifying Annuities with Marc Rogers and Jon ‘JAG’ Gay

“Annuity” is one of those words in financial planning that scares away some clients, and glazes over the eyes of others. But annuities can be a very valuable tool in protecting your clients against running out of money. Today, Jon “JAG” Gay and Marc Rogers of Producers Prospect talk about how to handle the annuity conversation.

Annuities really have adapted and changed with the times. As Marc says, “they aren’t your grandfather’s annuities anymore,” thanks to the advent of variable annuities and other vehicles.

Annuities as a Retirement Income Tool

Annuities can be used to bridge an income gap between where a retiree’s social security and investments are, and what they need to live a comfortable retirement. They also provide a hedge against market volatility, limiting the upside, but eliminating the downside risk. Marc cites some examples of the market being overvalued today – and the fact that we are long overdue for a downturn, and a rise in interest rates.

We highlight the different tools that advisors can use to explain annuities – from blog posts and YouTube videos to podcasts. And Marc provides some really great analogies to explain annuities in terms that almost anyone can understand.