The Growth Annuity Mistake Too Many Advisors Are Making

🚨 Here’s the mistake too many advisors make — and how to avoid it with a smarter, more consistent selection process.

Let’s be honest: there are a lot of indexed annuities on the market right now, and many advisors are quick to recommend them as “growth with protection.”

But here’s the problem: some of those indexed annuities don’t even outperform today’s top fixed rates.

And clients are catching on. They’re Googling MYGA rates, comparing guaranteed options, and asking:

“Why would I take a maybe when I can lock in a sure thing?”

If you don’t have a solid answer, you risk losing trust — and business — without even realizing it.

❌ The Mistake:

Recommending indexed annuities without first comparing them to today’s fixed rate benchmark.

Right now, a 5-year MYGA can offer 5.65% guaranteed, with 10% annual liquidity and A-rated strength. That’s your baseline. If your indexed pick can’t realistically outperform that in good conditions, then what are we doing?

Your clients expect protection, yes — but they also expect potential. And if your recommendation falls short on both, it’s not a plan... it’s a placeholder.

✅ A Smarter Way: The 3-Point Annuity Growth Test

This isn’t about guarantees. It’s about selecting the product with the most ways to win — especially when markets cooperate. Here's the process smart advisors are using to separate solid choices from hopeful guesses:

1. Can it outperform 5.65% in a good market?

This is your growth bar. If the best-case scenario strategy doesn’t beat today’s fixed rate options, why introduce complexity or risk?

2. Does it include at least one strong S&P 500 strategy?

Clients trust what they know. And there’s nothing more familiar than the S&P.
Even if the product includes fancy indices, make sure it also offers a simple, competitive S&P option. That keeps the conversation grounded and clear.

3. Do most strategies historically beat fixed?

This is the biggest miss we see. Too many products have one flashy index and a bunch of underperformers.

Think of it like building a basketball team:
Would you rather bet on one streaky scorer… or build around multiple players who can consistently put up points?

Your indexed annuity should have more than one way to win. If the client picks the “wrong” index, they should still have a real shot at outpacing fixed — not just hope.

💡 Why This Matters:

Most advisors just pick what sounds good — or worse, whatever their IMO is pushing this week.

But when you apply a repeatable process, clients notice. You move from salesperson to strategist. You’re not just throwing out product names — you’re curating solutions based on logic, not luck.

🎯 Final Thought:

You don’t need to hit home runs with every indexed case.
But you do need a lineup that consistently puts points on the board.

Use this 3-point growth test to filter smarter, close stronger, and prove you’re the advisor with a plan — not just another product picker.