[quote=playball] Whats up now dudes?Just met with a few prospects. They

have a million at a wirehouse firm (wont embarrass you) but its all coming

to me. A one million dollar equity indexed annuity ticket will look quite nice

on my next commission check.Boo-Ya!

[/quote]



If I were you, I don’t think I’d order that new Ferrari just yet. I think I’d oh-

so-carefully slide over to compliance and see if it’s going to fly. In this

environment, a million dollar EIA ticket might raise an eyebrow or two, not

to mention a red flag.

[quote=playball]Whats up now dudes?

Just met with a few prospects.  They have a million at a wirehouse firm (wont embarrass you)  but its all coming to me.  A one million dollar equity indexed annuity ticket will look quite nice on my next commission check.

Boo-Ya!


[/quote]

Another troll is what I’m thinking…

[quote=playball]Whats up now dudes?

Just met with a few prospects.  They have a million at a wirehouse firm (wont embarrass you)  but its all coming to me.  A one million dollar equity indexed annuity ticket will look quite nice on my next commission check.

Boo-Ya!

[/quote]

Nice ticket bro.

Hey I had a good day too.  700K account, 1% fee based, coming over from MS.  $7K every year from now on.  Cool huh?

[quote=joedabrkr]

Another troll is what I’m thinking…
[/quote]



Ditto, and if not a troll, then a possible lawsuit. Abusive EIA’s are
going to be the next stick that the spitzers of the world use to beat
up on the B/Ds.

1) Yes, he's probably a troll.

2) Regardless, someone doing a $1,000,000 EIA is not going to be associated with a B/D.

No more 7k for the rest of your career…all the work we have all done building up fee based books is out the window now!

[quote=anonymous]

1) Yes, he's probably a troll.

2) Regardless, someone doing a $1,000,000 EIA is not going to be associated with a B/D.

[/quote]

I agree, though my firm doesn't even do EIA's, I would imagine any self-respecting wire would throw up a red flag. 

As for the Spitzer comment from someone else...unfortunately, EIA's need to be stopped at the state level because they are an insurance product.  In my state, we (wires) are losing a ton of business to insurance agents "guaranteeing" returns but never losses.  Nothing we can do except explain that these guys are duping retirees.

[quote=Diplomaticos] No more 7k for the rest of your career…all the work

we have all done building up fee based books is out the window now!

[/quote]



How so?

[quote=entrylevelFA][quote=anonymous]

1) Yes, he's probably a troll.

2) Regardless, someone doing a $1,000,000 EIA is not going to be associated with a B/D.

[/quote]

I agree, though my firm doesn't even do EIA's, I would imagine any self-respecting wire would throw up a red flag. 

As for the Spitzer comment from someone else...unfortunately, EIA's need to be stopped at the state level because they are an insurance product.  In my state, we (wires) are losing a ton of business to insurance agents "guaranteeing" returns but never losses.  Nothing we can do except explain that these guys are duping retirees.

[/quote]

I don't think he said he was with a wirehouse. You are probably losing the business because your competition tells your clients how YOU are duping them. What goes around comes around. Telling people that they are being duped is tantamount to telling them that you don't think they're smart enough to make a decision without you.

[quote=Bobby Hull]

[quote=playball]Whats up now dudes?

Just met with a few prospects.  They have a million at a wirehouse firm (wont embarrass you)  but its all coming to me.  A one million dollar equity indexed annuity ticket will look quite nice on my next commission check.

Boo-Ya!

[/quote]

Nice ticket bro.

[/quote]

 . . .says one idiot to another.  The mutual admiration society.

Bet you didn't get the ACAT signed.

Indexed annuities?  wonderful.

[quote=Diplomaticos]No more 7k for the rest of your career…all the work we have all done building up fee based books is out the window now!
[/quote]

Not if the accounts are being managed. 

good job! enjoy the moment, But get on the phone and set more appointments

[quote=Bobby Hull][quote=entrylevelFA][quote=anonymous]

1) Yes, he's probably a troll.

2) Regardless, someone doing a $1,000,000 EIA is not going to be associated with a B/D.

[/quote]

I agree, though my firm doesn't even do EIA's, I would imagine any self-respecting wire would throw up a red flag. 

As for the Spitzer comment from someone else...unfortunately, EIA's need to be stopped at the state level because they are an insurance product.  In my state, we (wires) are losing a ton of business to insurance agents "guaranteeing" returns but never losses.  Nothing we can do except explain that these guys are duping retirees.

[/quote]

I don't think he said he was with a wirehouse. You are probably losing the business because your competition tells your clients how YOU are duping them. What goes around comes around. Telling people that they are being duped is tantamount to telling them that you don't think they're smart enough to make a decision without you.

[/quote]

Which is why I don't sell product.  I tell clients their being duped if they are told they need something (i.e. an annuity) without first analyzing their personal needs.  I simply educate and help them make a decision. 

new to this, but i'm interested in this conversation about EIA's.  I've come across some clients who are talking to some insurance salesmen about EIA's and i've been trying to educate them about the product but they keep going back to the guarantee.  Anybody have any other angles to use against them?

[quote=vbrainy][quote=Bobby Hull]

[quote=playball]Whats up now dudes?

Just met with a few prospects.  They have a million at a wirehouse firm (wont embarrass you)  but its all coming to me.  A one million dollar equity indexed annuity ticket will look quite nice on my next commission check.

Boo-Ya!

[/quote]

Nice ticket bro.

[/quote]

 . . .says one idiot to another.  The mutual admiration society.

Bet you didn't get the ACAT signed.

Indexed annuities?  wonderful.

[/quote]

...so says the idiot that thinks that there are ACAT forms to sign when selling an EIA.

[quote=entrylevelFA][quote=Bobby Hull][quote=entrylevelFA][quote=anonymous]

1) Yes, he's probably a troll.

2) Regardless, someone doing a $1,000,000 EIA is not going to be associated with a B/D.

[/quote]

I agree, though my firm doesn't even do EIA's, I would imagine any self-respecting wire would throw up a red flag. 

As for the Spitzer comment from someone else...unfortunately, EIA's need to be stopped at the state level because they are an insurance product.  In my state, we (wires) are losing a ton of business to insurance agents "guaranteeing" returns but never losses.  Nothing we can do except explain that these guys are duping retirees.

[/quote]

I don't think he said he was with a wirehouse. You are probably losing the business because your competition tells your clients how YOU are duping them. What goes around comes around. Telling people that they are being duped is tantamount to telling them that you don't think they're smart enough to make a decision without you.

[/quote]

Which is why I don't sell product.  I tell clients their being duped if they are told they need something (i.e. an annuity) without first analyzing their personal needs.  I simply educate and help them make a decision. 

[/quote]

Oh? You're an educator? How nice for you. I take a different approach. I figure out what they want and sell it to them. In case you haven't heard, people want the potential for growth without the risk of losing principal. Educating them and appealing to their sense of logic is an amateur, idiot's folly.

new to this, but i'm interested in this conversation about EIA's.  I've come across some clients who are talking to some insurance salesmen about EIA's and i've been trying to educate them about the product but they keep going back to the guarantee.  Anybody have any other angles to use against them?

These people are probably your customers and not your clients.  Why else would they be talking to someone else.  It sounds like they want guarantees and you haven't been able to offer guarantees. 

I've never sold an EIA, but I don't think that they are some sort of evil.  EIAs are nothing more than fixed annuities with a different crediting method.  If a fixed annuity is appropriate for a client, then the EIA may be appropriate.  Is a fixed annuity appropriate for these clients?

[quote=anonymous]

new to this, but i'm interested in this conversation about EIA's.  I've come across some clients who are talking to some insurance salesmen about EIA's and i've been trying to educate them about the product but they keep going back to the guarantee.  Anybody have any other angles to use against them?

These people are probably your customers and not your clients.  Why else would they be talking to someone else.  It sounds like they want guarantees and you haven't been able to offer guarantees. 

I've never sold an EIA, but I don't think that they are some sort of evil.  EIAs are nothing more than fixed annuities with a different crediting method.  If a fixed annuity is appropriate for a client, then the EIA may be appropriate.  Is a fixed annuity appropriate for these clients?

[/quote]

EIAs give a participation of the market not the full market growth.  So on the upside if the market does 10%  the EIA may have a participation rate of 70 to 80% of that 10%. In addition many also have a cap on the amount the account is credited.  So if the market did 30% and the contract is 70% participation with a cap of 7% then the client will get 7%.  

The client is assured that they won't lose principal in down markets.  Generally there is nothing credited to the account of the market is down, or sometimes a small interest rate is guaranteed.  VERY SMALL.  So the client is kept from full market participation and/or guaranteed a substandard interest rate.

Here is the real negative in EIAs.  There is a minimum gain guaranteed.  3% is what I have seen in the past.  HOWEVER, the 3% is for the life of the contract....not compounded annually.  So, divide 3% by the number of years the contract has to exist and the guaranteed gain is really peanuts.  The client would be better off buying a 10 15 year muni bond if they want safety and lower taxes or a Variable Annuity with GRIB if they truly wanted market participation with guarantees.  Other products have guarantees much better than EIAs.

Every contract is different and there are a lot of hidden and unexplained things.  If you can get a copy of the contract you can highlight the things the EIA guy doesn't tell the client.  Some of which are (not in all contracts): you have to annuitize the contract to get your money out, the way the contract is calculated (point to point, averaging, quarterly ratchet etc), the high surrender fees, the low % of free withdrawals and so on.  

You also need to ask the clients WHY they think they need an annuity.  You will be surprised how many don't really plan to use the income and are thinking of leaving the investment to heirs.   An annuity is a very bad investment to leave your estate.