March Annuities and the Investor Perspective

Transcription

1 March Annuities and the Investor Perspective

2 2 we are a language strategy firm focused on one idea: it s not what you say, it s what they hear you can have everything else right the right actions, the right idea, the right product but if your language doesn t meaningfully connect to your audience, it won t matter our philosophy

3 3 + The right framing can change the way you look at an issue Would you support raising taxes? For Law Enforcement 51% To Halt the Rising Crime Rate 68%

4 4 + The right language can transform how the market looks at brands and products What s more important to you in a card program? knowing my card will work wherever and whenever I want to use it 68% universal acceptance 22%

5 5 People who don t even know what an annuity does will still condemn them They have heard horror stories of high fees and downside, and the very word annuity turns them off The fees They ll kill you Investor, Atlanta If I had invested in something else, I could have gotten more Investor, Dallas annuities: 2010

6 6 but what do investors think today?

7 7 + By mining public facing data on Twitter and news forums we analyzed digital mentions of annuities in the past year + Our Twitter analysis focused in on keywords that gauged: General online discussion around annuities and retirement Negative sentiment toward annuities associated with barriers to investing or selling uncovering the investor perspective

8 8 65 million Americans check social media accounts 17 times per day Users spend 170 minutes per month on Twitter Under Million in Over half of adults have a profile on a social networking site h 65+ demo will see the largest increase from social media quick stats

9 9 Are annuities a good product and something we should consider? Online forum question what investors are saying on social media

10 10 what advisors are seeing on social media

11 (self-proclaimed) Top Independent Annuity Agent Recognized Annuity Critic & Expert haters gonna hate

12 12 Nothing is ever free! Sound too good to be true? It s probably an indexed Don t fall for misleading annuity ads that feed off your retirement fears Turn on your common sense Avoid putting money into these expensive, overpriced money criticisms run the gamut

13 13 Buying a variable annuity with income rider can be confusing, here are some tips for choosing the right Over the years, annuities have gotten a bad rap as being complex and expensive The five common Annuities have well-deserved reputation as costly and complicated, but could save your Annuities are hard to love They are often complex and expensive Here are 4 reasons to love starting from the defensive

14 14 so what s next?

15 Less favorable Neutral More favorable see how investors have changed

16 16 There are all those critics out there The Suze Ormans of the world Advisor, Atlanta vs It s investing money that you can get in the future Investor, Houston recognize the disconnect

17 17 identify additional barriers to selling

18 18 I m being pitched annuities and I can t make sense of them Investor, WSJ: A Guide to Avoiding the Biggest Annuity Mistakes summarize the problem

19 19 creating a path forward

20 20 I put quite a bit away each year; so long as nothing catastrophic happens, I think I ve got enough Investor, Houston I feel like we re saving enough, but we really don t have a plan Investor, Houston Long-range planning takes a long time and you need a lot in retirement Investor, San Diego investors see the need

21 Save 21 My biggest concern is having enough money to last Investor, San Diego I want to maintain my lifestyle Investor, Houston I m worried about outliving my money Investor, San Diego biggest concern = saving enough

22 Save 22 you say they only hear instead say A contract between you and an insurance company that delivers guaranteed income for life Insuring your own money? You have to insure your car, your house, have health insurance I don t like it, insuring what I m already earning Investor, Houston A way to save that delivers guaranteed income for life the benefit, without the baggage

23 23 you say they hear Product they don t need more products

24 24 you say they hear why it works Tool Retirement tool means it s part of the package Investor, San Diego The package includes other investments and an advisor who has their best interest in mind a tool with a specific purpose

25 25 Annuities are an insurance contract It sounded like he was selling! Investor, San Diego Of course, there is no perfect investment, and if the markets have taught us anything in the last ten years, it s that volatility is here to stay It s my job to help you manage some of that volatility It seemed too opinionated, rather than informational Investor, San Diego they see right through the selling

26 26 I want you to present the information and then I make the decision Investor, San Diego put an annuity in context

27 27 + What defensive language are you using today, and how can you shift it to emphasize benefits instead? + How can you simplify the way you talk about annuities to help consumers understand them? + In light of the new DOL fiduciary rules, can you show investors how annuities are part of a broader retirement strategy? questions to consider

28 28 a word about DOL

29 29 + In light of the new DOL fiduciary rules, can you show investors how annuities are part of a broader retirement strategy? annuities & the DOL

30 30 it's not what you say, it's what they hear Larry Moscow Partner