The pandemic popped the clutch and downshifted the mentality of investors and savers alike to principal preservation. If that indeed is the client’s psychonomics and is verified by a risk tolerance test, then ok. But to sideline everyone from market driven products to annuities and participating whole life insurance better be confirmed in writing or you’ll be open to the accusation of just selling insurance products and high commission contracts.
On the other hand, if you’re telling seniors that junk bond and stock dividend yields are viable alternatives for income and you never addressed fixed rate annuities, income annuities or participating whole life insurance, you could be accused of a form of steering. That advice was actually broadcast on one of the leading financial shows on cable TV. The omitting of annuity rates in this case was an omission that for most is not in the best interest of seniors.
The real danger here is for security licensed representatives and investment advisers to offer products that can only be managed in a portfolio at the exclusion of annuities and life insurance in an age of full disclosure and principal preservation.