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Three Great RILA Solutions From Great American

If you are a believer of the thought process that long term growth is not achieved by having that big year here and there, but is achieved by smoothing out the ride and protecting against big losses, then you should take a closer look at the Summit 6 contract from Great American. If you are a believer in higher caps and keeping all the gains, the Great American Frontier 5 and Frontier 7 contracts have some of the highest 1-year term caps in the industry and was the #1 ranked RILA solution, according to Barron’s TOP 100 Annuities.

Contrary to many other variable index annuity contracts, Great American has designed their Summit 6 variable index annuity contract with participation rates on both the upside and downside, rather than the typical growth cap number on the upside that is tied to a maximum loss protection number on the downside. With the current participation rates in the S&P 500 Index option being as high as 75% (1-year term option) of any growth and 50% of any losses, that means your client keeps 75% of what they earn while eliminating 50% of the risk involved in investing in the S&P 500. I don’t know about you, but 75% of the upside in exchange for 50% of the risk on the downside sounds like a pretty good deal to me. We are giving up a little potential on the upside for a lot of protection on the downside. Hence, slow and steady wins the race.

The Great American Frontier 5 and Frontier 7 contracts have some of the highest 1-year segment cap rates in the industry right now. They also have a buffer option or a floor option for downside protection. The buffer option gives you a 10% buffer against losses each year and the floor option allows your client to dial in a max loss number for each year that is between 1% and 10%. So the client can choose if they want to absorb the first bit of losses in their contract each year up to a dialed in amount that they set and have the insurance company be responsible for any losses over that amount, or do they can choose a buffer where the insurance company absorbs the first 10% of losses every year, and they are responsible for anything over that amount.

As you can see, Great American has options for everyone in the RILA market. Slow and steady sharing in gains and losses or 100% participation in the market with some of the highest 1-year cap rates out there with the choice of a buffer against losses or a dialed in stop loss that they set within their comfort level.

For more detailed information on the Great American Summit 6, Frontier 5, or Frontier 7 contracts, or to discuss a potential opportunity, please contact Brad Latta at 954.288.7098.

Contact Micah Hesting for more information:
Relationships/Business Development Strategist
Ext. 113
micah@leadersgroup.net

A Perfect Opportunity To Add Revenue To Your Current Business Model

If you have ever thought about getting into the 401(k) market, Mutual of Omaha can make the addition to your practice very easy for you. From taking the liability off your hands (3(38), 3(21), 3(16)) to prospecting services to education to great financial professional support and customer service, they do it all and do it well. Not only are they a great partner for the financial professional that is just entering the 401(k) space, they are a great partner for the financial professional that is familiar with the space but only does a few here and there, and the advanced 401(k) financial professional that wants to outsource their smaller accounts that are not worth all of the services that they provide to their larger accounts.

Although Mutual does work with larger 401(k)s, their wheelhouse is 401(k)s with 100 or fewer employees and $2 million – $10 million in assets. This is the segment that works best with their top-of-the-line service model. Along with their top-of-the-line service model and recourses, another thing that struck me was the amount of success Mutual of Omaha is able to generate with their “Imagine Retirement Right” participant enrollment program that is offered on every plan they do. This is a patent-pending engagement workshop aimed at motivating and engaging participants to take action in their retirement plan. A key component of Mutual of Omaha’s process is explaining the value of meeting one-on-one with their financial professional and driving one-on-one sign ups.

I could go on and on about the different ways Mutual of Omaha can bring value to the table for 401(k) financial professionals and other financial professionals looking to get into the 401(k) space, but in the interest of time, I won’t.

To learn more about Mutual of Omaha, please click on the links below and/or give the Mutual of Omaha sales desk a call at 877-401-7253.

Sell Retirement Right website: www.SellRetirementRight.com

3(16) Administrative Advantage Customer Testimonial Video: https://www.mutualofomaha.com/esp/vids/Insights/palace-entertainment-testimonial.php

Imagine Retirement Right Video: https://youtu.be/zKwebDnEMjI

Contact Micah Hesting for more information:
Relationships/Business Development Strategist
Ext. 113
micah@leadersgroup.net

Lincoln Level Advantage: One of the top RILA’s on the Market

The RILA history is one that started slow but is really picking up steam over the last couple years, not only in the industry but at The Leaders Group as well; that is why our financial professionals should pay attention to this product if they are not aware of it and selling it already. In fact, LIMRA recently published U.S. Annuity Sales Estimates for year-over-year growth 2018 vs 2019 showing that while VA’s were down 8% and traditional index annuities up only 13%, RILA’s made a huge jump and were up 63%. The attraction here is market participation with downside protection at no cost to the client, and Lincoln has one of the top contracts out there right now. Along with some of the highest – if not the highest – market cap rates in the industry, additional product design options that you do not see on a lot of other “Buffer Annuities” is another reason many financial professionals seem to be flocking to this contract.

The Lincoln Level Advantage contract has 1-year, 6-year annual lock, and 6-year terms to choose from, and you can track an index (four to choose from or combine), select variable subaccounts (14 to choose from), or a combination of both. You can also choose to design these contracts with an account value or return of premium death benefit.

If you choose the 1-year term and track an index, you have a 10% or 100% buffer/protection to choose from. At the end of that 1-year term, you have the option to renew the contract at the current cap rates, do an internal exchange to another product, do an external transfer to another product, or liquidate the account.

If you choose the 6-year annual lock contract and track the index, it operates like the 1-year contract except your cap rate is locked in for six years at issue of the contract, and you only have the 10% buffer/protection option. At the end of that 6-year term, you have the option to renew the contract at the current cap rates, do an internal exchange to another product, do an external transfer to another product, or liquidate the account.

If you choose the 6-year contract and track the index, it is a 6-year point-to-point and your cap rate for that period is locked in at issue of the contract, and you have 10%, 20%, and 30% buffer/protection options to choose from. At the end of that 6-year term, you have the option to renew the contract at the current cap rates, do an internal exchange to another product, do an external transfer to another product, or liquidate the account.

As an example, with the current cap rates this contract has, it is so strong that if you had a client that chose to do the 6-year term contract, S&P Index, account value death benefit, and 10% buffer/protection, they would not even have a cap. The current cap rate listed for this design is “uncapped.” So really, you just have market participation with a 10% buffer/protection and no fees. If your client was to choose the same thing as above, except they wanted to add the return of premium death benefit, they would have a 500% cap over the 6-year point-to-point term. So, the downside with this option is that if you put in $100,000 and grew it to $550,000 over the next 6 years, you would only be able to keep $500,000 of it. I would assume that most financial professionals would chuckle at that sentence, but I could be wrong.

The last thing that I want to mention is that if you do use any of the 14 different variable subaccount options within any of these contracts, there would be product charges and subaccount charges on the portion of money that is invested in the variable account options only.

If you would like to learn more about the Lincoln Level Advantage contract and the different designs that you can create, please give me a call and/or click on the links to the marketing material and Lincoln Level Advantage website below.

LEARN MORE

Contact Micah Hesting for more information:
Relationships/Business Development Strategist
Ext. 113
micah@leadersgroup.net

The Leaders Group Undeterred By Economic Uncertainty

Littleton, Colorado – Family-owned, independent broker-dealer, The Leaders Group, Inc., surpassed 1,000 registered representatives in 2020, adding 276 this year alone with 139 of those additions being retail or dual retail-wholesale representatives – many of whom were formerly affiliated with Nationwide. Founded in 1994 by the late Dave Wickersham, The Leaders Group has grown steadily and enjoyed more than 25 years in a constantly evolving and volatile market.

As the #1 distributor broker-dealer in the world for variable life insurance, The Leaders Group achieved 20-22% of year-over-year top-line revenue growth in 2020 and averaged about 20% in annual top-line revenue growth over the past five years. The firm has expanded its influence over annuity business and forged a path for licensed property and casualty agents to produce in the personal finance market, particularly IRAs and some 401(k)s. The Leaders Group has been the preferred broker-dealer for life insurance producers and retail representatives and has also been a leading broker-dealer for private placement insurance and life settlement solutions.

The strategies we have implemented over the past several years have put our business on a higher growth trajectory than even we could have predicted. The praise our back office receives from new reps illustrates our distinction from other broker-dealers and RIA firms.
Sean Wickersham, President and Chief Marketing Officer

The Leaders Group is one of the nation’s only broker-dealers specializing in wholesale brokerage business. With nearly 200 general agents and wholesale organizations, the firm is committed to helping distribute securities and insurance products through BGAs. Many other broker-dealers fail to understand wholesale business and can be difficult to work with due to their lack of experience within the market. While other broker-dealers are becoming more restrictive, The Leaders Group’s ability to leverage wholesale relationships helps newly registered representatives protect the relationships they have built throughout their careers.

Some producers have a need for a robust retail platform; The Leaders Group provides that platform, enabling general agents to recruit retail producers under their hierarchy and affiliate them within the agency. Every communication from The Leaders Group serves to reinforce the relationship between the retail representative and their GA. As evidence of the firm’s commitment to wholesale business, The Leaders Group has a dedicated team of professionals to serve as the point of contact for registration, transition, and education and sales support.

The Leaders Group is a growing firm in a challenging industry. We understand the frustrations that many financial professionals face when leaving one firm for another and aim to ease their transition as much as possible. Flexibility is a big reason why people are choosing to work with us.
Charles Arnold, Sales & Business Development Team Manager

In addition to widening their imprint on the broker-dealer market, the firm has seen growth in the outside registered investment advisor (RIA) space. TLG Advisors, Inc. provides a solution for advisors seeking more freedom and value within the financial services industry. Many of The Leaders Group’s financial professionals are dually registered as investment advisor representatives (IARs) with TLG Advisors, a combination typically not found at other firms.

The overarching motto “doing the right thing is always the right thing!^TM” guides The Leaders Group’s business operations and decision making. The firm looks to continue thriving as a result of their unique understanding of the industry and flexible accommodation of almost any business model or situation.

About The Leaders Group

The Leaders Group, Inc. is a national, independent broker-dealer focused on delivering a superior level of customer service. Founded in 1994 by the late Dave Wickersham, The Leaders Group is one of the nation’s only broker-dealers specializing in wholesale brokerage business, with nearly 200 general agents and wholesale organizations. With the focus of helping to distribute securities and insurance products through BGAs, today we are the #1 distributor broker-dealer of VUL in the world. We continue to be The Premier Broker-Dealer for BGAs™ due to our unique understanding of the industry and our flexible accommodation of almost any business model or situation.

In addition to wholesale business, The Leaders Group has been the preferred broker-dealer for life insurance producers and retail advisors nationwide. We are also a leading broker-dealer for private placement insurance and life settlement solutions. We take pride in supporting your efforts to run your business independently and endorse a client-first mindset, maintaining a high level of accessibility and industry-specific knowledge to fit almost any business model. Our friendly and experienced staff is ready to assist you with building your business.

We are family owned and operate independently from all insurance providers, marketing organizations and other entities. The Leaders Group has enjoyed more than 25 years in the business, excelling in a constantly evolving and volatile broker-dealer market. Our reps are not a number but members of The Leaders Group family.

AssetMark: One of the Top Money Managers in the Industry

AssetMark was founded in 1996 and currently manages $56 billion. AssetMark is also one of the fastest growing 3rd party money management firms in the industry. Their philosophy has evolved over the years but it has always been centered on providing advisors the following key capabilities:

Multiple Strategists: No single firm always has the “right” asset allocation, so their philosophy has always been anchored in providing advisors with a diverse array of Strategists.
- Today AssetMark has 15 Strategists, including firms like JP Morgan, Blackrock, Doubleline, State Street and more
  - Collectively these strategists manage over $15 trillion with 2,000 PhDs and CFAs in 80 locations around the world.
  - Often these firms have $15-$25 million investment minimums for some of the same types of strategies we have access to at a much lower threshold through partnering with AssetMark. This gives everyday clients the opportunity to play in the same investment sandbox as the billionaires of the world.
Advice & Guidance
- AssetMark’s experienced Investment Team helps Advisors blend complementary Strategists together to construct portfolios for clients.
- They partner closely with Advisors to craft portfolios that fit your preferences and your client’s needs.
Practice Management
- Beyond a variety of Best Practices workshops, AssetMark also has Regional Practice Management Consultants.
  - These deeply experienced Coaches work to identify each Advisors strengths and areas where they need improvement
  - They then engage with them on an ongoing basis to help implement change, grow their practice, and increase the value of their businesses.

If you would like to learn more about AssetMark and the solutions they offer please give me a call.

Contact Micah Hesting for more information:
Relationships/Business Development Strategist
Ext. 113
micah@leadersgroup.net