Annuity Caddie Tip: Hit the 6-Iron or the 7-Iron?

I "lost" a client today, and I believe it's in his best interest.

Successful CPA. Large nest egg. Already owned a smaller FIA and wanted to add another.

We did a proper Annuity 101 and fact finder: - Different annuity types - How caps and participation rates work - Why the S&P 500 is boring but durable

By the third meeting, it was clear: His goal was straight accumulation, and current S&P 500 caps just weren't sitting right with him.

He kept circling back to flashy VC-style indexes with big caps and participation rates.

I explained plainly how those indexes work and why shiny doesn't always mean better. He understood, but you could still hear hesitation in his voice.

So I did my job as a caddie.

I said: "There might be another club for this shot."

We talked at a high level about RILAs, just education on what they are. His body language changed instantly. That was his club.

I referred him to a trusted partner who can help with RILAs and broader investing.

That's not a loss. That's a win.

Sometimes I'll recommend the 7-iron. But if the client feels confident with the 6, my job isn't to force the swing.

I don't hit the shots. I read the course, explain the risks, and help guide the decision.

I hope I truly helped him, and I hope I get the chance to help many more.