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

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.

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

Returns “through a magnifying glass” is what the Athene Amplify contract is all about.  What does a magnifying glass do?  It makes things larger than they would otherwise be if you were not using a magnifying glass.  That is exactly what the Athene “Amplify” variable index annuity does as it pertains to the returns in the account – it makes them larger than they would otherwise be if not using a magnifying glass.

The Athene Amplify product is not your typical variable index annuity.  Like other variable index annuities, the Athene Amplify contract gives you upside potential with downside protection.  The difference is that the upside potential in the Amplify contract is where we can bust out the magnifying glass.  For example, right now, you can build the contract to participate in the S&P 500 Index with no cap and a 140% upside participation rate, and you have a 20% buffer built in to protect against losses.  

This specific build is a 6-year point-to-point term like many other variable index annuities out there, but I want to be clear about one thing that initially slipped by me because I was used to the way just about all other variable index annuities work:  The 140% is not a cap.  The design I mentioned above is an uncapped design.  The contract is giving you 140% of your index returns and a downside protection of 20%.  In comparison, where other variable annuities may give you a cap of around 100% growth on 20% downside protection, Athene’s Amplify contract will not cap that growth, and it will add 40% to whatever that uncapped growth number is.

Is this too good to be true? No, but it is too good to be free, and that takes us to a second difference between the Athene Amplify contract and most other variable index annuities.  The Athene Amplify contract described above does carry a 0.95% annual charge.  So, I guess you would have to ask yourself one question when considering a variable index annuity:  Do you want one with no explicit fees to the client, or is 0.95% a year worth an extra 40% added to your earnings?

For more information on the Athene Amplify contract, please see the attached material and/or contact the Athene annuity sales desk at 888.266.8489.

Variable Annuities vs Registered Index-Linked Annuities

Buffers and Floors – A Closer Look

Remaster the Art of Living

Contact Micah Hesting for more information:
Relationships/Business Development Strategist
Ext. 1130
micah@leadersgroup.net

Mariner Wealth Advisors helps advisors and clients grow and maintain assets based on managing assets to your investor’s financial goals. Mariner believes in allocating every client’s assets individually and personally, rather than relying on set formulas. Mariner combines objective investment advice, exhaustive research and professional portfolio management to deliver a complete approach to asset management.

Key advantages of their philosophy:

• Provides proper diversification in an effort to reduce risk.
• A focus is on downside risk as well as managing the upside potential.
• In depth research is conducted to identify value.
• Identifies and takes advantage of market trends and inefficiencies.
• A consistent approach is a central theme.

Mariner’s Investment Selection Process

Mutual funds and separately managed accounts: Mariner targets fundamentally sound mutual funds and separately managed accounts that produce solid, sustainable performance over time.

Equity securities: Mariner seeks out leading industries and companies offering opportunities for long term growth and dividends, as well as cyclical companies, turnarounds and value situations.

Fixed-income securities: Mariner focuses on income and capital appreciation, supported by active portfolio management within a long-term framework.

Mariner’s Dynamic View

Rebalancing: Because asset classes perform differently, Mariner rebalances your client’s portfolio in an effort to ensure their asset allocation stays where they want it. Before making adjustments, Mariner reviews:

• Current economic conditions
• Individual profile
• Potential tax consequences

Repositioning: From time-to-time, the characteristics of a security change and it no

longer meets Mariner’s criteria. If your client holds that security, an individual analysis of your client’s portfolio is triggered, allowing Mariner to reposition their investments.

Focus on Asset Allocation: Over the years, your client’s investment profile changes as

their life changes. Mariner will adjust your client’s asset allocation to align with their evolving needs and objectives, as well as with changing economic conditions and market trends.

Analyzing Tax Implications: Taxes can affect the return of a portfolio on many levels. Mariner will screen funds and stocks for tax issues before buying or selling. They also try to offset gains

and losses as much as possible to minimize your client’s potential tax liability.

Differentiate Your Practice with Custom Asset Management

Mariner’s institutional approach coupled with personal portfolios to address investors’ unique needs is a powerful combination. Through this formula Mariner designs efficient portfolios while maintaining the flexibility to incorporate the client’s current investments. In addition, Mariner will utilize feedback submitted by you to ensure the Mariner managed portfolio works with your overall investment plan for each customer. This provides you an edge over your competitors’ marketing models and generic solutions.

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