Cash Flow Decisions now lets you stress test the retirement plan. By stress testing the plan, the returns entered (or selected) in the Illustrate Losses section will impact the client’s current plan as well as the proposed plan. You’ll have the ability to stress test the plan when an annuity, life insurance policy and/or a reverse mortgage is being proposed. This is the fairest way to propose annuities.  Open tutorial in your PDF viewer

The stress being applied to the plan usually makes the annuity look like a no brainer. The overall cash flow result after the stress is applied tends to be a much better (and safer) outcome than the client’s current situation without the income floor vehicle.  Below is the cash flow comparison between current and proposed, with 2007,2008 and 2009 annual returns being applied to the portfolio one year before the client’s retirement is due to begin. Which side would you chose?