For decades, the 4% Rule has been the accepted standard for withdrawals from retirement savings. But, with today's market volatility, high inflation, and increasing correlation across asset classes, 4% may no longer be the formula to deliver a secure retirement that can last 30 years or more.
With the advent of modern, Commission-Free annuities, advisors and their clients have access to solutions that not only can deliver greater income than the 4% Rule, but can do so with less money and less risk. How? The inherent income efficiency of an annuity can help ensure each dollar goes further in retirement with low-cost, guaranteed lifetime income, and withdrawal rates as high as 9.3% annually1.
Annuities can generate income 40%* more efficiently than bonds.
Annuities act as a personal pension, guaranteeing income payments for life.
Annuities can protect assets from market volatility and other risks to income.
Below are some common objections we hear from advisors, and how DPL can help alleviate them.
The annuity market is a $4T market — showing a clear consumer desire for guaranteed income. The psychological benefits of annuities are well documented, including peace of mind and increased happiness in retirement. Not only can they provide that peace of mind, annuities can also provide a budget for those who tend to overspend or a freedom to enjoy their retirement for those who are afraid spending will cause them to run out of money in later years.
This is a common statement from advisors who have not yet made the comparison to a no-load annuity. An annuity is built on the insurance carrier’s balance sheet, which resembles a large, scaled bond ladder. So, insurance products will often perform like fixed income investments, but where they shine relative to traditional fixed income portfolios is in the income they can generate. We encourage you to run the numbers.
While this used to be the case when insurance was commission-based, with fee-based products, insurance can be additive to AUM rather than lost AUM.
DPL Consultant Jonathan Barth explains how a commission-free annuities help RIAs provide better client outcomes.
Lead Consultant, Jonathan Barth, shares how DPL’s team help financial advisors improve client cases with Commission-Free solutions and model annuities within their clients’ financial plans to better illustrate the benefits the solutions can provide.
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To learn more about low-cost, Commission-Free solutions call us at 1-877-625-5544 and speak to a DPL consultant.
1Payout rate offered by a leading DPL carrier. Rates are guaranteed by the insurance carrier and subject to change without notice. Rates current as of August 22, 2022.
