The Reallocation Factor Can Increase a Client's Yield

It means you can diversify in different fixed and indexed “buckets” based upon rates and market conditions at specified times (typically annually).

Most point-to-point fixed indexed annuities can change the strategies periodically (typically annually) to match allocation updates.

Suppose your client believes the market is in for a downturn.

In that case, they could choose a fixed growth amount for the next period, knowing they can change that to a market indexed growth amount at their next reallocation point.

Or, suppose that they believe the market is doing well and will for the next period.

In that case, they could allocate their funds to a market index for a much greater chance for growth, knowing they could always go back to the fixed “bucket” next time.

Or they could do a mixture of the two options and create their own hybrid solution.

The choice is 100% theirs with The Reallocation Factor.

And with fixed products, you know that no matter what they choose, there will never be any losses to their principal.

And that once the gains are credited at the end of every period, they are locked in and can never be lost.

And that a majority of these products have no fees at all.

The Bottom Line

Following the advice of experts can be great, once you know “the rest of the story.”

Tim Wood is a founder and broker at Safe Money Retirement.

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