Financial Planning: “Annuity providers use fintech to lure advisors amid low rates…”

Ryan Neal, the Financial Planning Technology Editor featured RetireOne’s recent launch of the Advisory Annuity Impact calculator in a story covering advisor’s use of downside risk protection products. He points out that providers are developing technologies to prove the value of insured solutions in client portfolios, as rates remain historically low, and folks make the case for replacing a portion of fixed income allocations with fixed index annuities.

Of the new tool, RetireOne CTO Scott Strait says, “Interest rates are so low today, it allows [advisors] to … capture upside and higher returns. We have the tool that illustrates how the product fits into the portfolio.”

According to Cerulli, over 70% of advisors use insurance products to protect the downside. And while 30% expect to increase allocations to these products, the highest rate of increase among these derisking solutions, Cerulli’s Brendan Powers says RIAs have been slow to adopt. 

Scott points out that the low adoption is a technology issue. Financial planning softwares aren’t equipped to model annuity impacts on client portfolios well, and RIAs favor these tools for proving the value of a particular solution in client portfolios. RetireOne CEO David Stone adds that interest in accumulation protection is rising and replacing bonds with fixed index annuities results in “uniformly better outomes.”

Read the article here: