Mutual funds also offer a stepped-up cost basis, but due to the high turnover of many of these funds, investors also have to pay taxes annually on fund distributions. Many clients were burned by this reality when their mutual funds declined over the course of the last few years and they still owed a tax. When you look at it like that, investors are actually paying for much of the stepped-up cost basis in annual taxes. The only true stepped up cost basis at death is on unrealized capital gains.
Matching the Right Product with the Right Client
Annuities are not for everyone, but for some they have proven to be the perfect fit. With the volatile markets of the last few years and the ever-dwindling availability of pensions, more and more people are in need of a guaranteed investment or guaranteed income and variable annuities can be just the right tool to provide those benefits. With all the negative media attention and critics, you will need to work with your candidates to show them how an annuity can help provide peace of mind. It’s up to you to display annuities in an objective light and prevent unfounded objections from causing clients to forgo making the right investments.
Tom has been a popular industry speaker for many years and is THE retirement income expert. As a former Fortune 100 senior executive, Tom has dedicated his entire career to helping retirees obtain a happily ever after retirement. He has been featured on FoxBusiness, American College Wealth Channel Magazine, Round the Table, Advisor Today and GAMA Magazine.
Tom currently lives in Arizona with his wife and children.
Latest posts by Tom Hegna (see all)
- Why Ken Fisher really LOVES Annuities! (And YOU should too!) - July 8, 2016
- The 3 Primary Variable Annuities Objections and How to Handle Them - June 22, 2016
- Social Security Risk: Connecting with Clients during Tax Season is a Must - March 23, 2016