Back to Education

Is It Time to Consider Annuities?

The Comprehensive Advisor Newsletter

January 2019

We have found many RIAs and comprehensive financial advisors don’t make annuities part of their everyday client conversations or recommendations. Our question is….”Is it time to consider annuities?” At The BluePrint, our commitment is to help you be a more comprehensive advisor. Having conversations about protecting a client and mitigating risk is a big part of providing comprehensive financial advice. Our goal is to help make those conversations easier by providing perspective and actionable ideas. In this month’s, The Comprehensive Advisor Newsletter we address annuities, where they fit and why now may be the time to start incorporating them into your client conversations.

Market Returns vs. Investor Returns

The recent stock market volatility has been dramatic and doesn’t seem to be slowing down. With increased volatility and market declines, it puts a spotlight on investor behavior. Research shows that investor returns are typically much lower than real market returns. For this reason, annuities can be a great client conversation to address behavior risk. When used as part of an overall portfolio the fact that an annuity can participate in some of the upside of the market with no downside risk can be very appealing during volatile times. One of the perceived downsides to these investments is returns typically average in the 3%-6% range. However, perceptions may need to be re-evaluated as research shows investor returns typically fall into those ranges anyway. Click here to view an article that addresses that idea.  Annuities can now be purchased as a “fee-only“ option just like other financial solutions that you may currently use. This allows you to manage them as part of your overall portfolio, link them to your performance reporting software and charge a fee like other investment assets. Let us know if you would like to learn more.

Retirement Unsteady

Retiring today is harder than in prior generations. The absence of company pensions coupled with increased longevity poses a real risk to people’s lifestyle in retirement. Annuities offer a great client conversation to address lifestyle protection in retirement. Immediate annuities can provide clients with a “personal pension” that they may lack from their current employer. Or a Fixed Index Annuity with an income guarantee can create similar lifetime income with “assets under management” and potential proceeds for beneficiaries. We encourage you to consider filling a portion of the income gap for clients with an annuity. A simple formula is to manage their essential needs in retirement with pensions, social security, and annuities. It is logical and makes sense to many clients when analyzing their retirement. We have client-friendly tools and presentations that allow you to take this planning conversation to clients.

Your Partner in Your Business 

The BluePrint is here to help you and your firm. There are several types of annuities (immediate, deferred, fixed, index, variable, QLAC, etc.) We understand each of these and more importantly, where they fit.  We offer consultative advice and client solutions.  We pride ourselves on being educators that are product agnostic and client driven.    


Helping you is our primary focus. If you would like to review any of the topics above, please contact us at 855.204.6353 or visit us at