Best Annuity Product

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BullBroker's picture
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In your opinion what is the best annuity product on the market right now? 

blarmston's picture
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Joined: 2005-02-26

Call your divisional annuity specialist, describe the situation, and they will point you in the right direction...

xfjoker's picture
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Many are very similar but I personally like John Hancock.

the word's picture
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It depends on the situation.  I use three:
.....American Skandia for return of premium.
.....Pacific Life for guaranteed income benefit(pre-retirement).
.....Hartford for retirees who need income

GoingIndy????'s picture
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Can't answer without providing a prospectus.  

troll's picture
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the word wrote:
It depends on the situation.  I use three:
.....American Skandia for return of premium.
.....Pacific Life for guaranteed income benefit(pre-retirement).
.....Hartford for retirees who need income

What do you use if they want to make money?

the word's picture
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oh great one, please bestow upon me the knowledge of THE variable annuity that provides returns of 24% year over year. 
You speak of it often, but never parley the knowledge.
 

troll's picture
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the word wrote:
oh great one, please bestow upon me the knowledge of THE variable annuity that provides returns of 24% year over year. 
You speak of it often, but never parley the knowledge.
 

No.

the word's picture
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Then i guess i will have to stick with my usuaul suspects.
Just think, you could have shared with me the knowledge of a great product that not only can help peolpe plan for, and live comfortably through, retirement, but also could change the lives of their next generation.  Think of all the additional lives you could touch.  The good that could be done.  Yet, you live them to flounder with me, the semi retarded bank broker. 

troll's picture
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BullBroker wrote:In your opinion what is the best annuity product on the market right now? 
The one my client will buy.

troll's picture
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brandnewadvisor's picture
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The best annuity is the one that gets returned within the free look period so the client isn't stuck with some sh*t annuity; or its the Jefferson National flat fee V.A. with no surrenders.

anonymous's picture
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The best annuity is the one that gets returned within the free look period so the client isn't stuck with some sh*t annuity; or its the Jefferson National flat fee V.A. with no surrenders.
This kind of crap is written by people who have no clue about investor behavior.   

aldo63's picture
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the one that has had the same wholesaler for a least 2 years.

troll's picture
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brandnewadvisor wrote:The best annuity is the one that gets returned within the free look period so the client isn't stuck with some sh*t annuity; or its the Jefferson National flat fee V.A. with no surrenders.
Of course Mr. RIA has to hate annuities. He can't get paid for them.

EDJ to RIA's picture
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Immediate annuities are the only good annuities.

Dust Bunny's picture
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EDJ to RIA wrote:
Immediate annuities are the only good annuities.

That's a pretty stupid statement.  Immediate annuities have a very small selection of appropriate uses and give a horrible return on invested principle.  

Vin Diesel's picture
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the one that pays the rep the most

anonymous's picture
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Immediate annuities are the only good annuities.
Just another post by someone who doesn't understand the difference between investor performance and investment performance.

Spaceman Spiff's picture
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A-share annuities only sold by EDJ brokers.
Sorry, couldn't control myself.

bluestars80's picture
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Joined: 2007-07-12

The BEST annuity is the one that does what the client needs, and nothing more, stay away from a rider list that's longer than Santa Claus's X-mas list............

BullBroker's picture
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blarmston wrote:Call your divisional annuity specialist, describe the situation, and they will point you in the right direction...
Thanks, I have spoken with our annuity specialist, I was looking more from a National standpoint rather than just what I have access too.  More of a competitive edge where I can place a wedge between a prospect and their current relationships.  I know what we offer I was curious as to what other firms/indies are selling right now and why.   

the word's picture
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The american skandia annuity has a nice guarantee that makes most people feel all warm and fuzzy.  Seven years from now if you have any less money than you started with, they credit you the difference.  
1.25 + .25 +.9 =2.4 all in.
 

troll's picture
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Do you have to annuitize for that guarantee?

troll's picture
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troll's picture
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the word wrote:
The american skandia annuity has a nice guarantee that makes most people feel all warm and fuzzy.  Seven years from now if you have any less money than you started with, they credit you the difference.  
1.25 + .25 +.9 =2.4 all in.
 

That's a lot of dough just for a principal guarantee. What are the restrictions on the sub-account selections?

the word's picture
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You can select any of the subs they have available.  They(American Skandia) can shift funds into a fixed account if performance warrants, restricting access to subs for your entire investment.  I have only had this happen a few times.  And it was like five percent of the total value.
No annuitization. 8 year surrender.  10 if you want a 6.5% bonus.

troll's picture
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the word wrote:
You can select any of the subs they have available.  They(American Skandia) can shift funds into a fixed account if performance warrants, restricting access to subs for your entire investment.  I have only had this happen a few times.  And it was like five percent of the total value.
No annuitization. 8 year surrender.  10 if you want a 6.5% bonus.

Now I remember. That's the one where they're quick to move to the fixed bucket and slow to move back out. I'll be an EIA could make more  money than that  and guarantee the principal.

the word's picture
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Lucky for my clients, they were up so much that this market dive hasn't created any shift to the fixed bucket. 

anonymous's picture
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The possibility of being forced into a fixed bucket would cause me to not use the product.

the word's picture
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This isn't the best product.  But sometimes I have do what i can to help my less sophisicated investors.  And those are alot, comes with the bank gig.  I usualy only use this to keep rollovers from going into CD's.

troll's picture
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the word wrote:
This isn't the best product.  But sometimes I have do what i can to help my less sophisicated investors.  And those are alot, comes with the bank gig.  I usualy only use this to keep rollovers from going into CD's.

Hard to argue with that.

anabuhabkuss's picture
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the word,
that is interesting. talk to me about how much income your clients are pulling out? what withdrawal options are available?
I'm in the same boat as you. I came across this lady, 54 yrs old, widowed.
She: "I want to take income and be able to recoup all my money back if the market tanks"
Lines like these make me want to move to Iran, commit a minor crime and get hanged for it.

bluestars80's picture
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anabuhabkuss wrote:
the word,
that is interesting. talk to me about how much income your clients are pulling out? what withdrawal options are available?
I'm in the same boat as you. I came across this lady, 54 yrs old, widowed.
She: "I want to take income and be able to recoup all my money back if the market tanks"
Lines like these make me want to move to Iran, commit a minor crime and get hanged for it.
Sounds like 7 day put bonds or a money market account..........
She probably needs growth, but has been rolling CD's for 20 years............maybe it's time for an "inflation talk".........
 

Dust Bunny's picture
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She: "I want to take income and be able to recoup all my money back if the market tanks"
ME: I want to be 35 again. Isn't it nice to dream.    Now let's talk about the realities of investing and see what kind of income we can get for you with the appropriate amount of risk and safety nets......

bluestars80's picture
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Dust Bunny wrote:
She: "I want to take income and be able to recoup all my money back if the market tanks"
ME: I want to be 35 again. Isn't it nice to dream.    Now let's talk about the realities of investing and see what kind of income we can get for you with the appropriate amount of risk and safety nets......
Exactly.........:) 

the word's picture
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Anabuhabkuss:
I don't use this investment for income.  However, i believe that any w/d reduces your baseline dollar for dollar.  From what you have relayed about your prospect, i wouldn't use this for her.  If your taking w/d and then are moved to the fixed bucket...ugh...be careful.
You need to talk to her about the lifetime five options on many annuities.  Are we talking about NQ or Q funds?
 

troll's picture
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Dust Bunny wrote:
She: "I want to take income and be able to recoup all my money back if the market tanks"
ME: I want to be 35 again. Isn't it nice to dream.    Now let's talk about the realities of investing and see what kind of income we can get for you with the appropriate amount of risk and safety nets......

How old ARE you?

blarmston's picture
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I picture her being 32... With dazzling long blond hair and a runners physique... She drives a Lexus Hybrid and exhibits crazy sexy cool...
Am I close Bunny?

anabuhabkuss's picture
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bluestars80 wrote:anabuhabkuss wrote:
the word,
that is interesting. talk to me about how much income your clients are pulling out? what withdrawal options are available?
I'm in the same boat as you. I came across this lady, 54 yrs old, widowed.
She: "I want to take income and be able to recoup all my money back if the market tanks"
Lines like these make me want to move to Iran, commit a minor crime and get hanged for it.
Sounds like 7 day put bonds or a money market account..........
She probably needs growth, but has been rolling CD's for 20 years............maybe it's time for an "inflation talk".........
 

Dude don't get me started.
This lady's husband, the bread winner, dies in March. She's 54, uneducated (but not necessarily dumb) and has 424000 to her name. She lives in this big house and wants (i kid you not) 30,000 of income. She currently has this money invested in a Fixed annuity.
I give her the inflation talk, show her how long $425k will lasts with her lifestyle, and she gives me that line i quoted earlier. i show her a VA and she looks at me like im crazy telling me "I know in 7 years the market will tank". Everytime I came back with her with a logical question she would just smile and shake her head at me like i was a loon.
I haven't spoken to her in a few weeks after chalking her up to be insane beyond belief. But I was curious if there were something out there that, somehow, fit what she wanted to buy.

troll's picture
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Somewhere, up in heaven perhaps, her dead husband is laughing at his good fortune.
At 71 she will have to reverse mortgage her house and become a walmart greeter.  Some people can't be helped.  Just curious, but what is her magical solution to her problem?  5% CD's?

Dust Bunny's picture
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blarmston wrote:
I picture her being 32... With dazzling long blond hair and a runners physique... She drives a Lexus Hybrid and exhibits crazy sexy cool...
Am I close Bunny?

Well, you are /were correct (except auburn hair) at that age.... which was a while ago.   No Lexus, but the the rest is right according to my husband.    I'm the same age as the lady in the example which is why I made that hypothetical remark to her.  This is actually a big plus for me (age) in dealing with women like the example.  Wealthy widows, or divorcees trust me more than they ever would a man or especially a younger man. 
I've made no secret on this board that I've been in this business for awhile.  Most people guess my age at least 10 years younger.  Must be that dewy Welsh complexion.

Dust Bunny's picture
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Back to the lady.  Some people just can't be helped. 
She's probably afraid of the stock market and feels inadequate when confronted with financial jargon.  I would talk to her in generalities and things that affect her life experiences and leave the financial details on the side for now.  Women like her (I'm assuming she never had control of the finances?) need to talk about their goals and feelings first: before even discussing percentages, inflation and other economic concepts.  If she just lost her husband, she is probably also afraid.
Ask her how much she paid for milk, beef or a loaf of bread in 1985? How much do those things cost now.  Put inflation in real terms.  
Does she need 30,000 or is that just some figure she picked out of thin air?  I would sit down with her an prepare a detailed budget first and discuss the items on the budget as to whether they are realistic or maybe inflated.  
I also explain to my clients that if they insist on getting the return that she demands from her investments that she will have to accept more risk. 
How about a split annuity concept?
 

blarmston's picture
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Ahhh. Bunny- what a woman....

pretzelhead's picture
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anabuhabkuss wrote:
the word,
that is interesting. talk to me about how much income your clients are pulling out? what withdrawal options are available?
I'm in the same boat as you. I came across this lady, 54 yrs old, widowed.
She: "I want to take income and be able to recoup all my money back if the market tanks"
Lines like these make me want to move to Iran, commit a minor crime and get hanged for it.

Try a Split Annuity for this situation.  One company (has a dead president's name coupled with the word "national") Has a great illustration that shows the two annuities working together in the split.  It is two annuities coupled together, one an immediate for tax favored monthly income, and the second a fixed annuity for tax deffered growth.  In essence, the client will put in their initial investment, receive monthly income for 7 years and then in day one, year 8 receive their initial premium back.
One I just did the client put 60k, receives ~$200 per month, saves in taxes (only $235 of the yearly income is taxable).
Pretty cool and much easier for bank clients to wrap their heads around than an EIA.

pretzelhead's picture
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Argh, sorry dust b, I posted w/o reading your post....

troll's picture
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anabuhabkuss wrote:bluestars80 wrote:anabuhabkuss wrote:
the word,
that is interesting. talk to me about how much income your clients are pulling out? what withdrawal options are available?
I'm in the same boat as you. I came across this lady, 54 yrs old, widowed.
She: "I want to take income and be able to recoup all my money back if the market tanks"
Lines like these make me want to move to Iran, commit a minor crime and get hanged for it.
Sounds like 7 day put bonds or a money market account..........
She probably needs growth, but has been rolling CD's for 20 years............maybe it's time for an "inflation talk".........
 

Dude don't get me started.
This lady's husband, the bread winner, dies in March. She's 54, uneducated (but not necessarily dumb) and has 424000 to her name. She lives in this big house and wants (i kid you not) 30,000 of income. She currently has this money invested in a Fixed annuity.
I give her the inflation talk, show her how long $425k will lasts with her lifestyle, and she gives me that line i quoted earlier. i show her a VA and she looks at me like im crazy telling me "I know in 7 years the market will tank". Everytime I came back with her with a logical question she would just smile and shake her head at me like i was a loon.
I haven't spoken to her in a few weeks after chalking her up to be insane beyond belief. But I was curious if there were something out there that, somehow, fit what she wanted to buy.

How do you know the husband is going to die in March?

troll's picture
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Joined: 2004-11-29

pretzelhead wrote:anabuhabkuss wrote:
the word,
that is interesting. talk to me about how much income your clients are pulling out? what withdrawal options are available?
I'm in the same boat as you. I came across this lady, 54 yrs old, widowed.
She: "I want to take income and be able to recoup all my money back if the market tanks"
Lines like these make me want to move to Iran, commit a minor crime and get hanged for it.

Try a Split Annuity for this situation.  One company (has a dead president's name coupled with the word "national") Has a great illustration that shows the two annuities working together in the split.  It is two annuities coupled together, one an immediate for tax favored monthly income, and the second a fixed annuity for tax deffered growth.  In essence, the client will put in their initial investment, receive monthly income for 7 years and then in day one, year 8 receive their initial premium back.
One I just did the client put 60k, receives ~$200 per month, saves in taxes (only $235 of the yearly income is taxable).
Pretty cool and much easier for bank clients to wrap their heads around than an EIA.

Is it "Clinton National"?  Well......I can dream, can't I?

Dust Bunny's picture
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pretzelhead wrote:
Argh, sorry dust b, I posted w/o reading your post....

Great minds think alike.

the word's picture
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Are the immediate payout rates for a 54 year woman enough to make this strategy work given the amount of income needed.  About 2 months ago i was quoted about $900 per 100k for a 62 year old male.  That has to go down for a 54 year old woman. 

troll's picture
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Dust Bunny wrote:blarmston wrote:
I picture her being 32... With dazzling long blond hair and a runners physique... She drives a Lexus Hybrid and exhibits crazy sexy cool...
Am I close Bunny?

Well, you are /were correct (except auburn hair) at that age.... which was a while ago.   No Lexus, but the the rest is right according to my husband.    I'm the same age as the lady in the example which is why I made that hypothetical remark to her.  This is actually a big plus for me (age) in dealing with women like the example.  Wealthy widows, or divorcees trust me more than they ever would a man or especially a younger man. 
I've made no secret on this board that I've been in this business for awhile.  Most people guess my age at least 10 years younger.  Must be that dewy Welsh complexion.

I can't believe that I'm madly in love with a 54 year old stranger.

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