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Annuities

Annuities

Annuities are the most efficient means of generating retirement income, and perhaps the only way to mitigate longevity risk . Commission-Free annuities can quickly outperform fixed income in generating retirement income, and provide payouts long after fixed income portfolios would be depleted. Use our Guaranteed Income tool to see how a no-load annuity can address your clients' retirement income needs.

The benefits of Commission-Free fixed index annuities for guaranteed income
Fixed Income Allocation

Research by Wade Pfau and Michael Finke finds Commission-Free annuities can generate income 40% more efficiently than bonds.

100% Downside Protection

A Commission-Free FIA can give clients’ assets complete downside protection with non-correlated exposure to the market.

Sequence of Returns Risk Mitigation

Fixed index annuities can provide guaranteed income, protecting clients' income from market volatility as they enter retirement.

Jonathan Barth
Why Annuities Are the New "Plan A"

DPL Consultant Jonathan Barth examines why advisors are using annuities — not bonds or cash — to complement equities and help improve portfolio performance for their clients.

Why stocks and annuities are the new "Plan A"

DPL's Jonathan Barth explains why stocks and bonds are no longer the best solution for clients who want to de-risk their portfolio and why using both investments and Commission-Free insurance can provide the best value for clients. 

Annuities

Annuities are perhaps the only way to mitigate longevity risk, but they also are a more efficient means of generating retirement income. Annuities can quickly outperform fixed income in generating retirement income, and provide payouts long after fixed income portfolios would be depleted.

Type Summary
Registered Index Linked Annuity

Registered Index Linked Annuities (also known as Structured Variable Annuities or Buffer Annuities) are tax-deferred insurance vehicles that provide upside potential with a defined degree of downside protection. The investor assumes the portion of the market risk that is in excess of the "buffer" or the initial losses before reaching the...

Solves for Principal Protection, Retirement Income
Deferred Income Annuity

A deferred income annuity is a contract funded with a lump-sum payment (premium) in exchange for guaranteed income payments at a future date. Also known as a longevity annuity because of QLAC-eligibility, a DIA can serve as a pension-like income stream for investors without a defined benefit plan through their employer. A DIA helps bridge an income gap and maintains an...

Solves for Retirement Income
Fixed Index Annuity

Fixed index annuities are tax-deferred insurance products that provide market upside, while protecting principal from market losses. Assets are allocated into indices that are designed to replicate market performance. These indices are typically accompanied with cap rates, spreads, or participation rates.

Solves for Retirement Income, Principal Protection, Annuity Rescue+
Multi-Year Guaranteed Annuity

Multi-year guaranteed annuities (MYGAs), a type of fixed annuity, offer a guaranteed fixed rate of return for the duration of the product. MYGAs provide tax deferral benefits, and can give clients the ability to annuitize their assets into a predictable lifetime stream of income.

Solves for Retirement Income, Principal Protection, Tax Deferral
Single Premium Immediate Annuity

A single premium immediate annuity is a contract funded with a single lump-sum payment (premium) in exchange for guaranteed income payments. Designed to supplement retirement income, a SPIA insures the purchaser against outliving their money or exhausting it within a certain timeframe. A SPIA can begin paying income immediately, bypassing...

Solves for Retirement Income
Variable Annuity

Variable annuities are tax-deferred insurance contracts with an underlying value that fluctuates based on the performance of the underlying investments. These products often offer insurance benefits such as guaranteed income or a death benefit. The ability to annuitize assets into a guaranteed lifetime income stream is the fundamental feature that qualifies a...

Solves for Tax Deferral, Annuity Rescue+, Legacy Planning, Retirement Income, Wealth Accumulation

Insights and Resources

Webinar

Jun 11, 2020
DPL Financial Partners Founder and CEO, David Lau, provides an introduction to Transamerica, our newest...

Video

Dec 10, 2019

David Lau explains how no-load insurance helps advisors differentiate their practice.

David Lau

Video

Feb 07, 2019

David Lau talks about the importance of DPL’s Founding Members to the company and the...

Webinar

Jun 17, 2020
Your clients likely aren’t asking you for annuities by name but they may be asking...

Webinar

Apr 29, 2020
Recent market disruption has likely impacted your clients’ retirement portfolios. For clients nearing retirement, the...

Webinar

Dec 02, 2020
Advent has partnered with DPL Financial Partners to bring the Advent Insurance Marketplace to Black...

Case Study

Aug 03, 2021

Dan Rohlfing, Senior Financial Advisor at The Lantz Financial Team, was searching for ways to...

Cody Williams

Video

Feb 07, 2019

DPL Senior Consultant Cody Williams explains how DPL helps advisors bring additional value to clients...

Webinar

Jun 24, 2020
With historically low interest rates and ongoing market volatility, now is the time to look...

Common Questions

How can annuities help with wealth accumulation?

Annuities can help clients accumulate wealth in two ways: 1) through tax-deferred accumulation, and, 2) through the efficient funding of retirement income. The additional tax deferral that can be accessed through low-cost variable annuities can be beneficial to high income earners who quickly max out their 401(k)s and IRAs. Academic research shows that annuities can fund retirement income more efficiently than traditional fixed income portfolios. By requiring fewer assets to generate income than traditional fixed income strategies, allocating to an annuity to fund essential retirement expenses leaves a greater share of a client’s portfolio to be invested in long term equity strategies that leverage accumulation potential.

How can annuities improve legacies?

The basic premise is that by using an annuity to efficiently fund retirement income, more assets are available to be invested in equities to grow legacy assets. Clients with longer life expectancies will benefit most as they generate income from their annuities even after their cash balances have been exhausted.

My firm doesn’t address annuities clients already own, why should we?

Clients can often save thousands of dollars in product fees when it makes sense to move from a commissioned insurance product to a low-cost, commission-free product. In addition to providing potentially improved financial outcomes to your clients, offering insurance solutions as part of a holistic financial planning process enables you to expand services, potentially attract new clients and increase AUM.

Does DPL perform analysis of annuities my clients already own?

One of the services we provide to our members is the evaluation of clients' existing annuity policies to determine if it is possible to leverage current benefits to help meet the goals of the financial plan, or, if it makes sense to use the policy to fund a no-load annuity that may be able to achieve client goals more efficiently.

Have more questions about Commission-Free Annuities?

Call us at 888.327.0049 to speak to a DPL Consultant.

DPL


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