How Annuity Arbitrage Can Elevate Your Client Conversations

As financial advisors, we’re constantly balancing two client needs: protecting lifestyle today and preserving legacy tomorrow. Traditional planning often forces clients to choose — more income now or more for heirs later. But what if you could help them accomplish both?

That’s where annuity arbitrage comes into play.

A Case Study: Turning Complexity Into Confidence

Greg, a 68-year-old PhD and successful professional, came to a seminar looking for clarity. He had significant assets — over $2M in his IRA, a $2M home, and additional retirement accounts — but also a $3M looming tax problem

Like many high-net-worth prospects, he had a will that was outdated, a strong income stream, and sophisticated interests (art, travel, scuba, wine). What he lacked was a cohesive plan that could:

• Protect his wealth from unnecessary taxation

• Create guaranteed income to support his lifestyle

• Organize his estate for fair and efficient transfer to his heirs

The Strategy: Pairing Income With Legacy

Through annuity arbitrage, Greg’s advisor structured a plan that included:

• $2M allocation to F&G Safe Income Advantage

  • Guaranteed withdrawal rate of 8.70% at age 73

  • Providing over $246,000 in annual guaranteed income

  • With potential impairment multiplier benefits if care needs arise

    UFC_Annuity Arbitrage Webinar S…

• $2M Pacific Life GUL to age 100

  • Premium: $54,260 annually

  • Ensuring a guaranteed death benefit to offset taxes and deliver more net to heirs

The results were powerful:

 Reduced a $3M tax problem
 Created guaranteed income for life to support lifestyle
 Increased tax-free net to heirs — more to the family, less to the government

Why This Matters for Advisors

This case illustrates the power of repositioning assets, not just accumulating them. For clients like Greg, annuity arbitrage delivers:

• Lifestyle security: predictable income they can’t outlive

• Legacy efficiency: death benefits structured to reduce tax drag

• Peace of mind: knowing both personal needs and family goals are met

And for you as the advisor, it creates:

• Deeper, more holistic client relationships

• Larger case sizes with significant premium and annuity allocations

• Differentiation in a crowded marketplace

Coaching Takeaway

High-income, asset-rich clients are often most concerned about balance: enjoying life while protecting family wealth. Annuity arbitrage isn’t about selling a product — it’s about solving that equation.

As you meet with clients and prospects, ask:

• “How confident are you that your current income projections are guaranteed?”

• “If taxes rise or markets decline, what impact will that have on your legacy?”

• “Would you like to see a strategy that delivers both lifestyle income and estate protection?”

Final Thought

Advisors who master annuity arbitrage unlock a unique value proposition: giving clients the best of both worlds. The opportunity is not just in the strategy, but in the story you tell — showing clients how they can live well today while leaving more tomorrow.

 Next Step for Advisors: Review your book for clients with significant qualified assets, taxable estates, or large income needs. These are prime candidates for annuity arbitrage conversations.