Osaic Annuities: More Options for Financial Advisors

Osaic Wealth Expands Fee-Based Annuity Options, Empowering Financial Advisors

Osaic Wealth is set to roll out new direct billing methods for specifically designated fee-based variable annuities available on its platform. This move promises to streamline operations for financial advisors and enhance the flexibility of their service offerings.

Streamlining Annuity Management

The new capability will be integrated into Osaic’s Annuity Submission Platform. This will enable advisors to more efficiently manage annuities, handle various operational tasks, and provide more adaptable service options to their clients.

Shannon Larson,Senior Vice President of Osaic Platform Management & Product Growth,stated,”This new functionality underscores our ongoing commitment to delivering solutions that power productivity and provide the flexibility to choose the investment products that best fit their clients’ needs. Equally important, we’re delivering these solutions with speed. Integrating these solutions aligns with our mission to lead with fee-based innovation.”

The Rise Of Fee-based Models

The registered investment advisor (RIA) channel is increasingly seen as a major growth area for the annuities sector. Industry experts predict ample development in this area over the next few years.

Goldman Sachs Asset Management conducted a study revealing that approximately 45% of industry professionals believe the RIA channel will experience the most growth in the insurance industry over the next three years. The independent space is expected to contribute 38%, while wirehouses account for only 8%.

Pro Tip: Consider how fee-based models align with your client’s financial goals and preferences. Transparency in fees can build trust and long-term relationships.

The Shift Towards Fee-Based Compensation

A notable percentage of financial advisors are already compensated through fee-based models. As advisors look to diversify their services, this trend is expected to continue. data indicates a steady increase in the adoption of fee-based compensation structures.

Cerulli Associates reported in March that approximately 72.4% of financial advisors are compensated through fee-based models. This number is projected to rise to about 77.6% by next year, marking a five percentage point increase from the previous year.

Andrew Blake, Associate Director at Cerulli associates, noted, “while asset-based fees are on the rise, they are not suitable in every situation.Option fee structures, such as annual or hourly fees, can provide greater flexibility in client service and a competitive advantage for firms in the fee-based business model.”

Comparing Compensation Models

Understanding the nuances of each compensation model is crucial for both advisors and clients. Here’s a quick comparison:

compensation Model	Description	Benefits	Considerations
Fee-Based	Advisors charge a percentage of assets under management (AUM) or a flat fee.	Transparency, aligns advisor interests with client growth.	Fees can be higher for smaller portfolios.
Commission-Based	Advisors earn commissions on the products they sell.	No direct fees, may be suitable for specific transactions.	Potential conflict of interest, less transparent.
Hybrid	Combines fee-based and commission-based compensation.	Flexibility, can accommodate various client needs.	Complexity, requires careful disclosure.

Did You Know? According to a 2023 study by McKinsey,clients who understand their advisor’s compensation model are more likely to report higher satisfaction levels.

Impact On The Annuities Sector

The expansion of fee-based annuity options by Osaic Wealth reflects a broader trend in the financial advisory industry. As more advisors transition to fee-based models, the demand for fee-based annuities is expected to increase.

This shift is driven by a desire for greater transparency, alignment of interests between advisors and clients, and the increasing complexity of financial planning. Fee-based annuities offer a way to incorporate these products into a comprehensive financial plan without the potential conflicts of interest associated with commission-based compensation.

What factors do you consider when choosing between fee-based and commission-based financial advice? How important is transparency in your financial advisor’s compensation model?

The Evergreen Value Of Fee-Based Financial Planning

The move towards fee-based financial planning represents a essential shift in how financial services are delivered. It emphasizes transparency, client alignment, and comprehensive planning over product sales

The advisory landscape has changed dramatically over the past decade, with technology playing a pivotal role. Robo-advisors, financial planning software, and online investment platforms have empowered investors with more access to information and control over their finances. Though, the need for personalized advice and guidance remains strong, especially when navigating complex financial decisions like retirement planning or estate planning.

Frequently Asked Questions About Fee-Based Annuities

• What are fee-Based Annuities? Fee-based annuities are insurance contracts where advisors are compensated via a management fee rather than commissions.
• How do they benefit clients? They offer transparency and align advisor incentives with client growth.
• Why is Osaic Wealth expanding these options? To meet the increasing demand from advisors shifting to fee-based models.
• What is the role of the RIA channel? The Registered Investment Advisor channel is a major growth area for fee-based annuities.
• Are fee-based advisors worth it? For many,the transparency and aligned incentives justify the cost.

What are your thoughts on the expansion of fee-based annuity options? Share your comments below!

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Osaic Annuities: Empowering Financial Advisors with Versatile Solutions

As a financial advisor,providing your clients with suitable options is paramount. Osaic (formerly Advisor Group, and various other entities) provides a comprehensive suite of annuity products, designed to cater to a broad spectrum of client needs and risk profiles. This guide delves into the world of Osaic annuities, offering financial advisors insights into the available choices, their benefits, and strategic approaches to integrate them effectively into your clients’ portfolios.

Understanding the osaic Annuity Landscape

Osaic’s annuity offerings are designed to provide financial advisors with flexible tools to address retirement planning, wealth accumulation, and income generation for their clients. The key is understanding the different annuity types and how they align with client objectives. Consider the following:

• Fixed Annuities: These are conservative options that guarantee a fixed interest rate for a set period. They provide a predictable stream of income and are suitable for clients seeking capital preservation.
• Fixed Indexed Annuities (FIAs): FIAs offer a blend of principal protection and growth potential linked to market indices. Clients can benefit from market gains up to a cap, while still shielding their principal from market downturns.
• Variable Annuities: Variable annuities allow investors to allocate funds across a selection of subaccounts, typically mirroring mutual funds. These offer the potential for higher returns but also expose clients to market risk.
• Immediate Annuities: Immediate annuities start providing income payments shortly after the purchase, making them a valuable option for clients nearing or already in retirement who need immediate income.

Key Benefits for Financial Advisors and their Clients

The strategic use of Osaic annuities can lead to several advantages:

• Guaranteed Income: Many annuity products offer guaranteed income streams, which is essential for clients’ retirement security.
• Tax-Deferred Growth: Annuities allow investment returns to grow tax-deferred until withdrawals begin, perhaps offering notable tax advantages.
• Death Benefit Options: Many annuities offers death benefit protection, protecting beneficiaries.
• Flexibility: Varied annuity types help tailor strategies across different client needs and risk tolerances.

Types of osaic Annuities and Their Applications

Let’s dive into the specific scenarios where each Osaic annuity type can be most effective:

Fixed Annuities in Action

Ideal for clients seeking predictable income. These are useful when overall market volatility is a primary concern. For example: A retired client wishes to ensure a steady income without market risk.

Utilizing Fixed Indexed Annuities

These products offer a balance of growth and security. Consider a client wanting some upside potential with protection. For example: a pre-retiree seeking to benefit from market gains without a full risk commitment.

Variable Annuities: When to Consider

Variable annuities serve clients pleasant with market risk who wont the upside growth potential. They’re suitable for those looking for growth with tax advantages, such as an investor with a long-term horizon. Example: a younger client, investing for retirement 20+ years away, is aiming for higher growth opportunities.

Immediate Annuities: Meeting Immediate Income Needs

Excellent for those wanting income right now. They provide stability from the outset. Example: a retiree who needs a payment immediately to cover living expenses.

Implementing Effective Strategies with Osaic Annuities

Several strategies can enhance the usefulness of annuities in financial planning:

• Diversification: Incorporate annuities into a diversified portfolio to balance risk and return.
• Longevity Planning: Use annuities to address the risk of outliving assets, providing secure lifetime income.
• Tax Optimization: Capitalize on tax-deferred growth to maximize the after-tax value of your clients’ investments.
• Income Planning: Choose annuities that fit your client’s income needs with lifetime or period certain payout options.

Practical Tips for Financial Advisors

1. Review Client Needs Frequently: Adapt annuity strategies to evolving client circumstances and life changes.
2. Educate Clients Clearly: explain annuity features and benefits so clients are fully informed.
3. Due Diligence: Research the financial strength and ratings of annuity providers.
4. Understand Fees & Expenses: Provide full transparency regarding all costs associated with the annuity.

Osaic Annuities: The Bottom Line

Osaic annuities offer a range of financial strategies for your clients, from income generation to retirement and tax-advantaged investing. By mastering the various annuity options, financial advisors can provide comprehensive financial plans.These steps can allow you to tailor the right annuity products to your clients’ unique goals,enabling them to achieve financial security and build a stable financial future. Ensure that you conduct due diligence and work within regulatory and ethical boundaries.