Redefining Income Planning

It seems much longer than 8 years ago when income riders within Fixed Indexed Annuities (FIAs) provided guarantees never offered.  Historical income value roll up rates that were as high as 8% are now being outperformed by uncapped strategies.  To me, its amazing to see how the evolution of income planning has redefined itself, especially in under a decade.  Today, more financial professionals are redirecting retirement funds into FIAs that provide increasing income streams, as well as uncapped strategies, for life.   Depending on when you plan to retire will determine which increasing income strategy may be best equipped to meet your needs.  This is why it is important to work with a professional who specialization lies within income planning solutions.

The days of FIA annual point to point strategies that can only provide a return of 3.0% are well behind us, and good riddance.  Through many of today's specialized indexed strategies, policy owners within a FIA can now participate in 90% + of the market upside (within a predetermined indexed strategy) with absolutely zero downside.  This means that you can never lose your principle or earned interest moving forward, regardless of how the market performs.  As this past recession has shown, principle protection in down markets is key to making your retirement a reality.  These recent uncapped strategies are causing more financial professionals to redirect client funds into guarantees absent in a turbulent market.  Depending on what your individual circumstances (retirement time-line) are will depend on which strategy may best suit your needs.

Income payouts within FIAs can illustrate much higher than ever before.  Income Account Values (non cash values) used to determine income payouts can participate up to 250% of a selected index return while in deferral.   Additionally, annual income payouts can increase by up to 150% of the same selected index.  For example, one particular FIA that has a 6% annual return (of a selected index) would result in an income payout increase of 9%, never to decrease!   Furthermore, each year the selected index increases in value the income will continue to increase by 150% respectively. Within a couple of these strategies I have seen income payouts potentially double within a 15 year period, while continuing to increase for life!  These are income payouts that have never been seen before, specifically designed to protect retirees from absent pensions and a bankrupted social security system.

So how did this evolution happen?  Simple.  Over the last several years analysts have learned to maximize the upside potential within specified indexes, while protecting the profitability of the issuing company.   Because of the extreme market fluctuations we have seen since 2008 (the most volatility since the Great Depression) statisticians and actuaries have been able to capitalize on market profit points, passing on the gains to the policy owner.

Where the evolution of income planning ends up remains to be seen.   I can tell you from personal experience that today's potential income payouts and uncapped strategies were never contemplated 8 years ago.  FIAs today are replacing fears of inflation and market downturns with comfort and predictability.  Now, finally, retirement can be planned with a higher quality of life than ever before!

Navigating Through a Perfect Storm

Here we are starting the 4th quarter of 2015. Many of the gains have been erased for the year, with more volatility to follow. Yet, the market still stands near its highest point ever. All the result of over $5 trillion dollars (not including interest) being pumped into the market over the last 7 years, to offset the largest recession since the Great Depression. The question is, is the market's worst behind us, or is the reality of a struggling world economy going to correct an over inflated market? In other words, what does the big picture look like moving forward? In order to answer that question let's take a look at how we got to where we are today. The answer was simple, spend and spend. Through quantitative easing, the Federal Reserve has pumped trillions of dollars into the bond market in order to create a strong foundation, or safe haven, for investors from volatility. It was a part of an attempt to drive down interest rates while stabilizing a volatile market. Whether or not you are for or against government intervention to protect the market, it worked. The results of the Federal Stimulus was unimaginably successful. It was a game changer. It allowed the market to outrun the pace of the economy, which over the years was welcomed by investors with open arms.

[How many of you remember all the times from 2009 -2012 where the market significantly rose on the suggestion/speculation of the Feds involvement (anticipation of the Fed printing more money)? I remember discussing these huge market jumps on my radio show, almost in a state of disbelief. In fact, some of my earlier articles referenced this phenomenon.]

Federal spending pulled the market up at an alarming rate, well above the threshold of what the economy could realistically (naturally) support. An unnatural cash injection to prop the market up.
It was either that, or see how far the rabbit hole (market plummeting) went. When they announced the stimulus everyone knew there would be long term consequences to this action, just no one knew when. Additionally, everyone was well aware that you cannot buy off a recession in the long term. So fast forward the clock and here we are today. We have record levels in the market, a struggling economy unfit for a rate hike, all while knocking on the door of a volatile election year.

I see today's market as the best opportunity investors have had in the last 100 years. I sincerely do. An opportunity to lock in their gains at just under the highest point the market has ever been, optimizing long term performance. Let's face it, today the words "long term goals" are rarely ever heard. The market is still trying to figure out what is happening week to week, let alone month to month. It seems anything past a month out is too far for speculation. The truth is we are in uncharted waters trying to navigate forward. This is why the proper advice can create a huge opportunity for most investors, if the right picture is painted.

Think of it as the perfect storm. A rally of epic proportions that has capped out, causing what is arguably the highest market surge in US history.

Most investors saw a 300% increase in their portfolio from 2009 to 2015.

How could there be a more perfect time to help your clients re-position what they have accumulated from 2009? Since the Federal stimulus ceased a couple of years back, there is a grave concern with many financial analysts that the market is overly inflated, certainly not reflective of a struggling economy at near record market highs. Besides, what other alternatives are there? The only other option to locking in your gains is to try and wait out, or beat, the market. In order for the economy to support these market highs, oil would need to completely rebound, middle class incomes significantly rise, European markets take a turn for the best (eliminating any threat to the Euro), and that China overcomes all their woes, just to name a few. Unfortunately, those who decide to wait it out may disrupt their time horizon depending on how long it takes the market to overcome another market drop. Remember, it is very unlikely we will see another form of stimulus to pull any future bear markets out of the red. It's too damaging to long term interests. Just think about how far investors were set back from the recession in 2008 to the market highs of 2015. A significant market drop could easily take several years to get back to even. If this happens, the end result could be the client missing out on over $80,000 of income throughout retirement on just a $250,000 deposit or ending up with a much lower end account value; depending on how the market performs. Whereas, the investor could have locked their gains in at one of the highest points in history, essentially skipping over future market downturns. The truth is most investors would have made moves to protect against the volatility if given the chance in 2008. We know through multiple studies since the Great Recession that most investors prefer a moderate return with no downside over exposure to volatility.

Even among the perfect storm, most investors will not realize the significance to locking in their gains at this opportune point. This is especially true given the current financial climate. Their interests lie in their own careers and families causing many to be distracted from the rhetorical talking heads, focusing on insignificant minor details instead of the whole picture. Besides, traditionally speaking, gains are usually locked in at the end of a bull market when the economy is at its strongest, not the other way around like the market we are seeing. Others get trapped in the day to day, week to week progress of the market abandoning long term focus. Once again, you can't plan for, or see, the long term if your navigating through uncertain times. When the market is at an all time high amidst a struggling economy, all signs point to a bear market ahead. Not to mention an election year around the corner filled with significant change and fear of the unknown. The writing is on the wall.

When you take a look at the driving factors of today's market, sometimes it feels as if the rules are set in opposition. For example, just this week the market significantly rallied on the notion that the Fed was not going to raise rates for the rest of the year because the economy was too weak to sustain a rate hike. Does this sound like a legitimate reason for the market to rally? Is this statement conducive of a strong economy? This is a perfect example of why the market is not likely to hold as high as it is. This is the market looking to the Fed for growth. As mentioned earlier in the article, how many times did the market rally since 2009 on speculation that the Fed was going to print more quantitative easing? What do you think the result of the rally would have been without the stimulus? True market surges are lifted on the backs of a strong economy both domestically and internationally, not on scattered speculation within a struggling economy.

In summary, the market rally from 2009 to just recently, has been arguably the highest market surge in US history. Investors now have an unprecedented opportunity to lock in their gains at one of the highest points the market has ever climbed. Moving forward, investors can bypass all market downturns, ensuring their long term goals are not disrupted. Through proper planning dedicated to preservation and longevity, investors have the best opportunity of success to whatever the unforeseen throws our way.

Article Source: http://EzineArticles.com/9202481

How To Pick The Right Indexed Annuity

When it comes to lifetime income there are many options to consider within a fixed indexed annuity (FIA). Preferences may vary from hoping for upside market performance, to a more conservative approach with a fixed rate of return. It is important to assess each option to make sure you are picking the right FIA to meet your long term needs. Which way you decide to go can drastically effect the amount of income you can receive moving forward.

One FIA providing lifetime income will credit interest based on market performance. The better the market does, the better your income payout is down the road. In fact, there a few of these indexed annuities that provide increasing income in market up years that will not lose income down years. Typically, these kinds of annuities usually payout based on performances of a market index, like a spread on the Barclays Bond Index or a capped version of a like index. Choosing how your funds are allocated will determine what your future income looks like. Therefore, how your funds are allocated will dictate how much of a cap, or upside, you will make in a given year. The downside is that if the market performs poorly over a given time period, your starting income may be lower than anticipated. To help put it into perspective, insurance companies can provide detailed illustrations to show income performance based on the last 10, 20, and 30 year look backs. What this means is they show a period of time in the past as an example of how your annuity income may pay out moving forward. If you choose this type of payout for your annuity income within retirement, it is highly recommended that you use a diverse option with respect to allocation percentages to help balance unforeseen market events; which in turn can protect your payouts in the future.

The argument when choosing the best market based performance income annuity is in how to determine market performance moving forward. Factors such as domestic and global federal stimulus packages have deviated the market from its norm. It is evident that what caused market fluctuations over the last few years is completely different than what we have seen in the past 10, 20, or 30 years. So from a certain perspective, what we see moving forward may work in opposition to what we have seen in the past; especially given the state of our global economy.

Another option when considering lifetime income is the fixed option with the income account value (IAV). The IAV is a feature on some indexed annuities that is separate from the cash value, strictly used for income calculation purposes. Therefore your cash value and your IAV value will be of different values (the IAV value will likely be higher as time goes on) throughout the lifetime of your annuity. The IAV receives a predetermined rate of return each and every year until you start the income, guaranteeing a payout regardless of market performance. The risk being that extra income may be left on the table in the event of a strong market performance. Today, this rate of return will usually average 6 – 8% annually with a predetermined payout dependent upon age. The older you are, the higher the payout. Because this is more of a conservative approach, the insurance company may allow provisions within the IAV to allow increased income in the future when poor health follows in retirement. The purpose is to provide the retiree with additional income for external costs associated with long term care or the need of nursing assistance. Once again, this type of FIA is generally for the more cautious retiree who wishes to leave nothing at chance with his/her lifetime income. With this strategy the retiree can purchase this annuity and know exactly what income they will qualify for up to 10 plus years in the future.

One of the main dilemmas on choosing the right IAV within your FIA is both the income and interest crediting options your contract will come with. I always use the analogy: what you don't make on the popcorn you make on the peanuts; meaning you may sacrifice a lower rate of return on your cash value in exchange for a higher lifetime income payout within the IAV. Typically higher lifetime income payouts within the IAV come with lower caps on the cash value which can restrict the amount of interest you can earn. Remember, pretty much all FIAs today give the option of partial withdrawals to lifetime income (within the surrender period) as a liquidity feature. This gives the retiree the flexibility to stop and start his/her lifetime income at their discretion and instead take a partial withdrawal. The partial withdrawals are contingent upon the cash value, not the IAV, so how much interest you earn on the cash value can be detrimental to how much you can withdrawal over retirement (assuming the lifetime income is not elected). Furthermore, the cash value is usually passed on to the beneficiary in the event of death, not the IAV. This is why it is important to find a professional that can show you a perfect balance between your earned interest on your cash value and your IAV payout.

When choosing the right FIA for your income needs it is crucial to determine what your risk level is. The more aggressive, optimistic approach generally follows the direction of the lifetime income that can increase over time and is solely dependent upon market fluctuations. Whereas the more conservative approach will tend to lean towards the fixed rate of return with the IAV while adding long term protection, providing a guaranteed payout regardless of market performance. Whichever way you go on your lifetime income, it's crucial to know the facts to make the right decisions for retirement income.  

Why Investors Should Be Concerned About the Market

At the time of writing, the market has recently begun to nosedive in response to news of the Federal stimulus coming to an end, the troubled financial state in the EU, and other influences.

I am of the opinion that the market will continue to deteriorate to counter balance the unprecedented market surge brought on by the Federal Stimulus, especially as the market's correction was almost solely based upon quantitative easing.

How far the market will fall remains to be seen; however, I feel that it will be significantly greater than a 15% correction. In October 2014 the Federal stimulus, known as quantitative easing, is ending with a Federal balance of $4.4 trillion dollars (not including interest). If it took trillions of dollars to inflate the market, what do you think is going to happen when it is taken away?

In the wake of the 2008 financial meltdown, the Federal Government was forced to act with an initial bailout of $800 billion to prevent a “Financial Armageddon.” Now, six years later, we have trillions added to our deficit due to quantitative easing. Granted, the Federal stimulus did protect the market from imploding in the short term, pulling the market up to record-setting levels; however we are now walking into the long term consequences of this act of socialism.

This is because both investors and the market alike have become complacent about the Fed purchasing trillions of dollars of bonds to artificially create a solid foundation under the market.

Now, with the foundation likely to stop being laid out or maintained, the market will have to wean itself off of this government intervention. This could be a blessing or a curse depending on the moves you make during this time.

If the market does take a significant drop, no one can say they didn't see it coming. This was not the case in the latter part of 2007 at the start of the Great Recession. The difference being that you can lock in your gains to make sure you don't ever take a step backwards. What many fail to realize is that if a percentage loss is immediately followed by the same percentage gain you will still end up losing value.

Think of it this way...

If four quarters (one dollar) lose 50% of their value, you have two quarters left over. If you then immediately apply a 50% gain back to the two quarters, you only increase by a single quarter and still finish up one quarter short. This is why it is crucial to lock in your gains to ensure you never take a step backwards, especially if you are dependent upon that money to live on during retirement.

However, parking your portfolio in cash over the next couple of years to weather the storm will still set you back. This is because most money market accounts will pay less than .01% interest, which usually equates to pennies of interest earned in a year, basically pausing your momentum. Instead, it is important to look at your long term goals, making sure that your momentum is never disturbed by market downturns.

The more momentum you have moving forward, the better position you will be in the long term.

When the market crashed in 2008, the Dow Jones was just over 14,000. At the lowest point of the recession, on March 5th, 2009, the market hit 6,594. At that point investors were in a state of shock, realizing what they had lost in just over a year. Because of the $4.4 trillion the government added to our deficit, the market soared to new highs, breathing hope back into both investors and Wall Street.

And yet, even though the market reached record levels, investors distrusted the reality of the situation and they turned to the Fed as insurance from volatility, conveniently turning a blind eye to the reality that the Federal Stimulus would end one day.

Well, here we are, with the Federal Stimulus coming to an end. The NASDAQ has already been officially categorized as being in a correction with pretty much everyone expecting more losses. Many recent articles are saying “Don't panic, stay the course,” or “We are still way ahead and corrections are natural.” I could not disagree more. The writing is on the wall, meaning if the market does take a big hit there was plenty of warning.

If you do not have a pension, you are responsible for taking care of your own retirement instead of looking back and pointing fingers. Added to which, if the market does take a big hit, you may have to work for several more years to make retirement a reality. There are, however, several variations of safe money options to make sure that your financial interests are covered moving forward, regardless of the Texas two-step the Fed is playing with Wall Street.

One of the most viable safe money options falls within a strategy of “indexing,” where many top-rated insurance companies will absorb all market losses in exchange for a variety of capped interest options paid out monthly or annually. Many of these insurance companies are the same ones that serviced and backed the pensions of the past and have recently redirected their interests.

Now, instead of the insurance company backing an employer's pension (group annuities), they have shifted the benefits to the consumer in the form of fixed indexed annuities (FIA). These FIAs usually come equipped with lifetime income benefits that can easily be used as an alternative to the pensions of the past. These income payouts can be stopped and started at the owner's discretion while still allowing access to the cash value.

Over the last 15 years these strategies have performed stride-for-stride with the market without any Federal Government bailouts while having explicit guarantees. In fact, many of these lifetime income payouts can be structured to increase over the years as the market increases (while also never decreasing), showing impressive payouts.

Moving forward, investors can choose to stay the course, putting their money into cash or money markets with near zero returns, or they can look to other strategies to protect their long-term interests. Whatever choice they make, I believe they should be aware of the volatility coming around the corner from the weaning of the Federal Stimulus.

The bottom line? Our global economy is not in a position to perform anywhere close to that which our over-performing market suggests. Once again, the writing is on the wall and it is up to you to decide how to prepare for this.

How Lifetime Income Stemmed From Permanent Financial Changes

 Believe it or not, less than 20 years ago lifetime income did not exist; nor did the fixed indexed annuity (FIA). It wasn't until 1997 that the first FIA was launched, with lifetime income coming into the picture almost a decade later. Today these products are used for long term retirement planning, ensuring that your retirement income will not be dependent upon external market events. However, these products would have never come into the picture if it wasn't for the financial changes that started taking place in the late 1980's.

From the end of the Civil War to the late 1980's, pensions were the safety net that employees could rely on for their golden years. It was common for an employee to work for a firm for 20 plus years, get a gold watch, and enjoy a pension for life throughout retirement; a fair tradeoff to say the least. Then the inevitable happened. Through a combination of medical advancements and market turmoil from a deregulated financial system in the 1980's, retirees started living longer than expected and financial hardships started taking place for big business. The combination of these events caused the pension to vanish, giving birth to the deferred compensation plan. Now the obligation of retirement was placed on the employee, a burden that few ever saw coming. Because of the absence of these pensions, the insurance industry focused on the needs of the individual and brought forth a new hybrid product, the FIA.

The FIA gives all the flexibility that the traditional pension failed to provide. Now the employee can redirect a lump sum (401k, IRA, or non-qualified savings) of cash into a vehicle that will guarantee a lifetime income independent of market fluctuations, while still maintaining access to the cash value. The cash value in an FIA can earn interest through a variety of options while never losing value to market performance. This is a huge benefit compared to a pension. Pensions, in turn, were group annuities where employees would contribute gross monthly installments in exchange for an income stream after X amount of years. Once the income was activated there was no cash value and income usually stopped at death. Let's take a closer look at how the FIA can provide an income stream for life.

An FIA usually comes equipped with a lifetime income benefit rider (LIBR). Basically, an account known as an Income Account Value (IAV) grows within an LIBR at a set rate each and every year regardless of market performance. The IAV is a non-cash value used as a formula to calculate the income you will be eligible for in the future. This formula will tell you exactly what you can expect for an income stream up to 15 years down the road. For general purposes, the more you fund the FIA with the more guaranteed income you can have access to. For this reason alone, many investors are redirecting a portion of their nest egg into these products simply as a substitute to the pension.

Today, billions of dollars are being repositioned into FIAs each and every year for retirement income that is guaranteed for life. With the obligation falling now on the employee to prepare for retirement, a shift in annuity income planning moved from a group of participants (pensions) to the individual (FIAs). Change is inevitable in a growing and volatile market place, especially if you are in the 95% of working Americans that do not have a pension. This is why it is important to embrace these individual income planning tools. Understanding how these positive changes can help you achieve your retirement goals is monumental to your long term success. As always, I highly recommend that you explore these options with a trusted licensed professional to help understand how an FIA could be of benefit to you in your retirement years.

Keeping Retirement Simple

It seems as though over the last couple of months there are three factors that have had control over the market fluctuations. Three factors outside of your control that can have you gravely concerned about your future nest egg in a matter of seconds. First, the concerns over the Russia – Ukraine crisis. How many times has the market gained and receded based on a one or two line quote from Putin? Second, the ongoing crisis in the Middle east, particularly issues in Israel and Iraq. As much as we hate the reality of it, this crisis has been going on for centuries, it is not going to change any time soon. Lastly, the falsified security of the federal stimulus. It is almost an automatic reaction, stocks take a hit and Wall Street looks to the Federal Government for more monetary assistance (Quantitative Easement III). Remember, the more we spend now the more we pay in taxes moving forward. How many of these concerns are in your control?

Obviously none of the mentioned concerns are in your control. Yet the future of your nest egg is dependent on what happens on a daily basis in the market. It does not have to be that way. You can take control of your own destiny regardless of external events. Assuming there is an American Flag flying over our country moving forward, guarantees are possible in retirement. It is quite simple. Don't focus on a dollar amount you are trying to reach (example: “I need $1 million to retire”), instead focus on a cost of the lifestyle you want to pursue in retirement. Ask yourself how much monthly income will you need in retirement for life, regardless of how long you may live. Everyone is living month to month. Those monthly expenses do not go away in retirement, instead they hopefully go down. Nonetheless, there will be monthly bills throughout each of our lifetimes. This is my recommendation of focus.

Think of it this way... Which scenario do you think hurt an investor more with their nest egg in 2006, prior to the financial crisis? The investor who's nest egg was dependent on day to day activities in the market, or the investor who knows they will get the same result regardless of the outcome? Now ask yourself the same question in today's volatile financial arena. This is the #1 reason why many future retirees, and retirees alike, are looking for protected income results independent of external market events. With hindsight being 20/20, how many of those investors would go back and trade the daily risks of retirement for a guaranteed result? If your goals can be met without risk, why would you roll the dice? Granted, you may miss out on a huge market rally; however, you would bypass the huge market falls as well. I believe this comes down to how much stress you are willing to endure in your lifetime.

To reiterate, turmoil in the market will always be there. This is a constant phenomenon. You will rarely, if ever, have control of these events; hoping the current will take you to shore. Unfortunately, there are many still at sea who thought they would hit land long ago. This is a risk you do not have to take on. There are viable solutions that will guarantee your results of lifetime income, regardless of what the market may throw your way. It is imperative to explore these solutions that have been available now for decades. I believe the only way to eliminate the stresses approaching or within retirement is to remove yourself from the situation. On a closing note, make sure to explore these options with a trusted licensed professional who thoroughly understands the ins and outs of lifetime income solutions.   

Why You Shouldn't Have a Dollar Amount Goal For Retirement

I'm pretty sure everyone has heard the retirement analogy of how much money you need to retire. As in, what is YOUR number for retirement? In other words, how much money (the actual dollar amount) do you need to retire with. I've always had a hard time wrapping my hands around this concept. To me, that number is totally contingent upon an unpredictable market. I'm sure that if you asked the average investor that question in 2006 you would have a much different response to an investor today. Today's investor seems to have become either complacent or numb to volatility, believing that the ups and downs in the market is a new norm. Since elements of the market are out of the investors control, not much time is spent worrying about it; out of sight, out of mind. This is especially true for those who plan to retire within the next 10 years. The truth is we don't know what lies around the corner, nor do many know how or when retirement is going to be possible. So what if, instead, you didn't have to worry about a number; only a guaranteed monthly income check down the road? Not a pension, rather a strategy like a liquid pension; if one were to exist.

I read a friend's book, “Savior Retirement”, that talks about a retired pilot, who knows regardless of market conditions there was going to be a check in his mailbox (before direct deposit was the norm) every month for the rest of his life. These were the good ol' days of working for one job for life, with a gold watch and a pension at the finish line. Today pilots do not have pensions, only 401ks to count on. Today it's more like “what is YOUR number going to be for retirement?”. That belief is a misconception. With the market being at the highest its ever been, you can exchange “what YOUR number is going to be” with a check to ensure your retirement will never be disturbed, regardless of what the market throws at us. A monthly payment you can turn off and on each month like a light switch while having access to your cash value simultaneously. So, how can you do this?

You can only accomplish lifetime income through fixed indexed annuities (FIA). These products are usually backed by multi-billion dollar insurance companies, many of which funded the pensions in the past. The difference being, pensions were funded by group annuities provided through an employer, whereas a FIA is an individual annuity funded by a lump sum payment. Only an FIA will provide a lifetime payment with all the flexibility a pension fails to provide. Monthly payments within an FIA can start on the first month or on the 10^th year. Typically, the longer you wait for a monthly check the higher the payment will be. FIA's are able to do this through Income Account Values (IAV) that grow at a predetermined interest rate. IAV's grow separate and independent of the cash value and serve as a formula to determine what the monthly payment will be down the road. The IAV makes sure that your monthly payment will be guaranteed regardless of how high or low the market may go. Bottom line, the IAV does not guarantee a lump sum payout, but instead a guaranteed monthly payment. A monthly payment that you can start and stop at your discretion while having access to the cash value. The balance being, the more cash you take out with a lump sum the lower your payment for life will be adjusted respectively.

Because of the disappearing act of the pension, investors are turning to the FIA to maintain their quality of life in retirement. Investors are turning their backs to how high they can grow their portfolio, rather focusing on how much monthly income they can count on for all their retirement needs. Investors are starting to realize that the roller coaster in the market over the last several years is likely to continue, making it impossible to determine the dollar amount they need in time to retire. They want to know what they can count on when the time comes for retirement. Furthermore, that their day to day obligations and quality of life in retirement will be there for life.

When considering an FIA to meet your retirement needs, it is important to discuss your options with a licensed professional who specializes in FIAs. There are to many instances where financial professionals make the wrong recommendation to the client, meaning the recommendation was not the best for the client's needs. There are a lot of moving parts, like how the cash value accumulates interest, that need to be addressed prior to the recommendation. With the right FIA you can guarantee a monthly check for life throughout your retirement that specifically meets your needs.