Today’s advisory annuities are commission-free and offer transparent, institutional pricing of investment options. They also allow RIAs to bill directly on the annuity without creating a taxable event or reducing the clients’ benefits. Despite these innovations, advisory annuities haven’t gained a foothold among RIAs.
Why the disconnect?
Misinformation about the product continues to create obstacles to adoption. Additionally, there is a misalignment between financial advisors’ interpretation of fiduciary duty and related commentary from the SEC, courts, and industry designation organizations.
This white paper discusses advisory annuities from both a product innovation standpoint and within the context of the industry’s fiduciary care standards. Its goal is to assist financial advisors in making informed decisions about annuities and to demonstrate that annuities do not conflict with fiduciary duty. Annuities have special features that can help clients address tax, income, and legacy needs. As such, considering annuities as a part of a comprehensive plan is exercising fiduciary care when serving the financial planning needs of a diverse client base.
Download the white paper.
This material is provided for informational purposes only and should not be construed as investment advice or a recommendation of any kind.
Pacific Life refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. Insurance products can be issued in all states, except New York, by Pacific Life Insurance Company or Pacific Life & Annuity Company. In New York, insurance products are only issued by Pacific Life & Annuity Company. Product/material availability and features may vary by state. Each insurance company is solely responsible for the financial obligations accruing under the products it issues.
Variable insurance products are distributed by Pacific Select Distributors, LLC (member FINRA & SIPC), a subsidiary of Pacific Life Insurance Company and an affiliate of Pacific Life & Annuity Company.
The home office for Pacific Life & Annuity Company is located in Phoenix, Arizona. The home office for Pacific Life Insurance Company is located in Omaha, Nebraska.