Not only are the low bond yields not enough to meet clients’ desired withdrawal rates, but in a rising interest rate environment their principal is at significant risk. Due to sequence of return risk, this upfront loss may be something their retirement goals may never recover from.


Evan a small increase in interest rates can cause client to suffer a large upfront loss that their retirement goals my never recover from

For clients in high tax brackets, this effect is even worse.

Bond gains are taxed at ordinary income taxation which means that clients in high tax brackets can lose 40%-50% of the already low bond gains due to high taxation.

“High net worth clients can lose 40%-50% of any bond gains due to taxation”

What if clients could invest in A-rated long-term bonds and get most of the yield without any of the interest rate risk?

Also, what if clients could defer all of the taxes on these gains until retirement when they might be in a lower bracket (and pay lower taxes on the gains)?

No-load annuities allow clients in high tax brackets to do all of the above. Furthermore, these no-load annuities allow fiduciary fee-only advisors the ability to earn their same AUM fee on the bonds in the more tax-efficient no-load annuity that they would if their clients were to invest in these long-term bonds directly (and take the interest rate risk).

As an added bonus, the advisor’s fees in the product are taken pre-tax which reduces the clients’ tax liability and increases their after-tax returns!

No-load annuities provide RIAs the ability to invest client bond funds in long-term investment grade bonds while taking none of the interest rate risk. For high net worth clients, this can provide higher after-tax returns and more downside protection than investing in these bonds directly while still earning the RIA the same AUM fee that they would make if these assets were invested in tax-inefficient bonds directly. As an added benefit, these fees are taken from the product pre-tax which further reduces the taxes clients pay on the gains and increases their after-tax returns

In a world of increasing volatility in equity markets and low yields in bond markets, clients have fled to fixed and indexed annuities over the past several years as a way to protect their hard-earned principal while also achieving some upside gain. In 2019, over $200 billion was invested in these financial products by clients seeking the same financial protection that they do from fiduciary financial advisors.


By not including these products that clients clearly want, fiduciary financial advisors are collectively losing out on billions of dollars of assets under management.

In a world of fee-compression, clients are demanding more from their financial advisors. And fiduciary no-load annuities that can protect client’s principal while giving them gain in the upside is exactly what clients near retirement are looking for.

Download our white paper on no-commission annuities that includes a case study on how an indexed annuity strategy beat a high net worth client’s bond portfolio in 83% of simulations on an after-tax, after-advisory fee basis all while allowing their fiduciary financial advisor the ability to collect their same asset under management fee.

    Download your
    free copy today