Selected Quotes from Survey Participants
Financial advisors surveyed offered many insights into how and why they are using VAs, including the following:
- I wanted to offer my clients guaranteed growth and guaranteed retirement withdrawals with very little risk.
- Product enhancements made them more reasonable for clients and their needs.
- I learned more about them... [now] I understand how they work and why they should be used.
- I will offer variable annuities when I discover that their retirement cash flow will not last to the age they want.
A More Open Dialogue While the search among investors for a better shock-resistant strategy has sparked renewed interest in the benefits and safeguards of variable annuities, the study notes that more can be done to facilitate the conversation between advisors and clients. "Advisors should be educated on the fact that their clients are looking for the protection and growth potential variable annuities offer, and have shown a willingness to pay for these features," noted Hart. "We believe that advisors should proactively discuss the appropriateness of insured investment solutions as an integral part of most clients' overall retirement investment strategy."
About the Survey The survey was commissioned by AllianceBernstein and IRI and conducted by market research firm InsightExpress. Targeting individuals who have either a FINRA Series 6 or FINRA Series 7 and an insurance license, we wanted to understand how and why they're using variable annuities in their practices. Eight out of ten respondents use these products, and nearly a third of those sold more than 10 contracts in the past year. The survey specifically examined whether the 2008 financial crisis had changed advisors' and investors' attitudes about variable annuities. Moreover, the survey looked closely at why some financial advisors use variable annuities as a primary retirement solution while others don't.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV