Sonny Horn is having a lot of success with a two-pronged approach recently, closing over $1.1 million of business. The clients that Sonny has been working with are nearing retirement and have a need to supplement social security and pension income with some additional guaranteed income – as well as maximized growth of the remaining money while reducing risk that they are currently taking on in their mutual fund holdings. Depending on the situation, the tools Sonny is using to satisfy these needs are one of a few different variable annuity contracts and the Brighthouse Shield variable index annuity.
When Sonny’s latest client (58 years old) came to him with $400,000 to invest, Sonny took them down the path of how he could solve for their income need and maximize growth on the remaining money while reducing current market risk and eliminating cost. Given the client’s age and that they were going to need joint income at 65, Sonny presented the Brighthouse variable annuity with the FlexChoice Access living benefit. In short, the FlexChoice Access living benefit provided this client 5% compounding growth in deferral years, up to 70% invested in American Funds subaccounts, and 6% joint income based on the oldest covered life at age 65. After reviewing the gap that existed between the income the client’s social security and pension distributions would generate and what the client’s actual income need was, Sonny backed into a number of $250,000 that would need to be placed into this contract to satisfy the amount of total income the client was looking to generate.
This left $150,000 on the table that the client wanted to grow as much as possible but had a low threshold for risk. For this pot of money, the client was presented with two options: a conservative managed money approach and the Brighthouse Shield variable index annuity contract. After being presented with and going over both options, the client selected the Shield contract from Brighthouse in order to allow them to continue to participate in the market while reducing the risk and eliminating cost. At the end of the day, this client felt more comfortable transferring to an account that would provide market participation, a buffer against losses, and zero fees rather than sticking with their current mutual fund holdings or transferring to a conservative managed money approach.
For more information on the Brighthouse variable annuity with FlexChoice Access and the Brighthouse Shield contracts, please see the marketing material below.
Contact Micah Hesting for more information:
Relationships/Business Development Strategist