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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. Visit our Guaranteed Income Calculator to see how a no-load annuity can address your clients' retirement income needs.

Get the facts

Leading academics provide insight into how annuities can generate income more efficiently than traditional fixed income portfolios. This efficient income generation, along with the guaranteed income stream, can have a meaningful impact on financial outcomes for clients in retirement. 

Advisor Reaction: "I can't unsee this."

Many advisors are surprised when they realize how an annuity can outperform their fixed income strategy to deliver secure retirement income for their clients. David Lau describes an advisor's reaction after taking a closer look at the impact of a Commission-Free annuity on a client's financial plan.

Advisor Reaction: “I can’t unsee this.”

David Lau describes an advisor's reaction after taking a closer look at how annuities can benefit their 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
Structured Variable Annuity

Structured Variable Annuities (SVAs) 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 "floor", but in exchange receives a higher participation rate...

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, Tax Deferral
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, Principal Protection
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

Insights and Resources

Webinar

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

Video

Jan 14, 2020

Nicole Benz, Consultant, talks about how DPL tailors our approach for breakaway firms to be successful.

David Lau, Founder and CEO

Video

Mar 27, 2020

Clients' emotional attitudes towards their money is just as important as the actual dollars and...

Video

Jan 13, 2017

Wade Pfau PhD, CFA, RICP explains the benefits of risk pooling in a retirement strategy. 

Video

May 18, 2020

David Blanchett, head of retirement research for Morningstar’s Investment Management group, says that among the...

Video

Jan 26, 2020

DPL Consultant Ross McGoodwin gives us a Real World Case Study about how an advisor is...

Video

Feb 04, 2020

Many advisors ask DPL about allocating to an annuity . Wade Pfau PhD, CFA, RICP shares his...

Video

Feb 03, 2020

DPL Founder and CEO, David Lau and Wade Pfau  PhD, CFA, RICP  talk...

Webinar

May 06, 2020
Often, a prospective client will come in the door owning one or more commission-based annuities...

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.

Get Started

To learn more about low-cost, Commission-Free solutions call us at 888.327.0049 and speak to a DPL consultant.

DPL


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DPL Financial Partners does business in the state of California as DPL Insurance Solutions
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