A Simple Eye-Opener for Your Clients

I have used this simple illustration to sell lots of annuities…

People have been told over and over to buy and hold and their accounts will come back… and they do, but how does that affect someone who is retired?

Let’s assume you get a 10% rate of return on $100,000 each year for the next 3 years:

Begin with             $100,000
End of 1st year      $110,000
End of 2nd year    $121,000
End of 3rd year     $133,100

The 4th year you lose just 10%…  $133,100 X 90% = $119,790.

That means your annual average rate of return is 4.5%.

Starts to make an FIA look pretty smart doesn’t it?

About Mike Kaselnak

Michael Kaselnak is considered one of the top marketing and sales experts in the financial services industry. He has personally mentored over 300 financial advisors in the past 10 years. These financial advisors saw their average production increase by 62%. Many saw increases of over 300 percent. He writes articles that have appeared in many mainstream magazines and has written the popular report 300 Financial Headlines that sell.
This entry was posted in General and tagged , , , , , , , , . Bookmark the permalink.

Leave a Reply

Your email address will not be published.