[pullquote]39% of financial advisors are selling more annuities[/pullquote]
Although some financial advisors turned toward transactional models during the downturn of the economy and loss of business, the majority are moving toward a fee-based business for their clients. Investors are still reeling from their losses and still unsure about what the future holds. Advisors need to find more options for their clients to get through the storm.
According to a survey by Russell Investments, “…39% of advisors are selling more annuities, in a response to customer demand for products guaranteed income products.” While clients are looking for a safe place to put their money with guaranteed income, they need to be aware these products aren’t always as great as they seem to be. These products also generate a nice commission for these advisors helping them to stay afloat or recoup their loss of business. Clients should be aware of the fine print.
Many financial advisors who were using transactional based models tend to have a larger client base than fee-based advisors. They are realizing how much extra time and effort they have to provide their fee-based clients. It is still an uphill battle for most financialadvisors to figure out the best way to retain as well as build their businesses. Clients are more demanding as ever in this economic aftermath.