Help clients ease into the market

The sudden onset of today's uncertain world has uprooted our daily lives and challenged us to rethink our plans for the future.

The pandemic has had an unprecedented impact on the economy – resulting in extreme levels of market volatility – leaving investors to question the long-term impact it will have on their retirement savings. Now more than ever, investors are turning to their financial professionals for guidance to help navigate the choppy waters and position their portfolios for their future.

Leveraging dollar cost averaging

Financial professionals can help clients weather the storm and take some of the emotion out of investing during turbulent times with a dollar cost averaging strategy (DCA). This disciplined approach keeps clients on a regular investment schedule over time, regardless of market conditions. Clients will buy more assets when the market is low and prices decline, and buy less when the market is high – generally resulting in a lower cost per share.

Easing clients into the market in small increments can help protect against market risk. During volatile times, a DCA approach gives clients the opportunity to boost retirement savings. This is a particularly powerful story when investors leverage a variable annuity that combines the DCA strategy with an interest rate as high as (8%).

Protecting retirement income and growing investment dollars

Leveraging a DCA strategy within an annuity contract with an optional living benefit rider for an additional cost provides clients guaranteed  income  payments while their money gradually gets invested – taking advantage of fluctuating prices while at the same time locking in a guaranteed minimum level of protected lifetime income.

Coupling a DCA strategy within an annuity contract gives the opportunity for investors to:

  1. Ease their way into the market with a disciplined investing approach; 
  2. Lock in protected lifetime income via a living benefit rider; 
  3. Boost retirement savings in a tax-deferred environment.

Solutions for tomorrow

In times of crisis, clients can feel empowered by knowledge and solutions. A DCA strategy can help clients navigate market volatility by gradually easing them into the market over time. Financial professionals can simultaneously help boost confidence in uncertain times by utilizing this strategy in client portfolios. While it cannot guarantee a profit or protect from loss in a declining market, it offers a strategic approach to help counterbalance the market turmoil.

Partner with us

To learn more about helping your clients plan for a more stable income retirement, contact your Lincoln representative today at 877-533-0265. And follow us on LinkedIn and Twitter for regular insights and tips on retirement income planning conversations.

Timothy Seifert

Tim Seifert has over 30 years of experience in the financial services industry and serves as Senior Vice President and Head of Annuity Sales for Lincoln Financial Distributors, Inc. (LFD), the wholesaling distribution organization for Lincoln Financial Group. In his role as Head of Annuity Sales, Tim leads the Center of Sales Development. He is focused on fostering consultative partnerships between wholesalers and financial professionals as they work with clients to solidify their financial futures and build portfolios based on their specific needs.