Equity Indexed fixed annuities?
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[quote=bankrep1]
I'd have to agree, wait for it......
I think Dirk is a rookie, 6 months in and is someones phone bitck. He has trouble getting along with others so he comes on here pretending to be a big shot arrogant prick when in all reality he is a lil' girl. Suckin' up to daddy or Uncle Ray in hopes one day they will pass along the book so Dirk can provide for his boyfriend, I mean wife. His screen name is probably who he fantasizes to be or be with...
[/quote]
If I were told what to sell and were on a 30% payout at a bank, I'd say the same thing. Of course, I could get upset about what you're saying about me or I can smile at the 1099's that have been arriving in my mailbox. Actually, I'm frowning because now I have to pay taxes.
P.S. A 1099 is something you get when you work for yourself. You wouldn't understand.
[quote=bankrep1]
I'd have to agree, wait for it......
I think Dirk is a rookie, 6 months in and is someones phone bitck. He has trouble getting along with others so he comes on here pretending to be a big shot arrogant prick when in all reality he is a lil' girl. Suckin' up to daddy or Uncle Ray in hopes one day they will pass along the book so Dirk can provide for his boyfriend, I mean wife. His screen name is probably who he fantasizes to be or be with...
[/quote]
DD may come across as arrogant, and you don't have to like him, but I can vouch for the fact that he has been in the business for way longer than you think, and from what I can tell(without seeing his bank deposits or 1099's) he's making some major bank.
You may find his views to be controversial, but he really believes in what he is doing and his passion comes through.....so that is what you see.
Belive me or not. "nuf said.
Joe
I think if you sell an Index Linked Annuity, your license should be revoked. The 2% per month cap is never clearly explained to clients and it a good market, you cripple them. If you owned these over the past 3 years, you're returns where mediocre compared to the S&P 500 because the big runs game in spurts.
If you want principal protection and 6-7% upside, look at a real annuity like AXA or ING. The Index linked annuities are all about YTB. (yield to broker).
Dirk I've got to hammer you on this one, Indexed Annuities are a joke.
1. no one mentioned dividends, what happens to the 2% a year yield on the s&P? That's right, the insurance company.
2. the litmus test is if you would buy one at age 60 yourself, if the answer is no, then don't sell them.
3. Annuities now are ticking tax time bombs. With the lowered long-term capital gains and dividend rates, how can you justify selling this garbage, especially if the plan is handing the money down?
4. Participation rates capped, average annual returns comparable to burying your money, huge surrender penalties, these are jokes.
5. Here's a better option, better for the client. Buy a ten year government agency note or insured muni with 60% of the money (that way it guarantees the full return of principal in 10 years) and put the other 40% of the principal in SPY ETF with dividend reinvestment.
[quote=youcanhatemenow]
Dirk I've got to hammer you on this one, Indexed Annuities are a joke.
1. no one mentioned dividends, what happens to the 2% a year yield on the s&P? That's right, the insurance company.
Wrong. Options are used to generate the growth. Options don't get dividends, therefore the bank doesn't get them. Nice try.
Also, people who don't want their money to be in the market like EIA's. Their money is NOT exposed to market risk. If you're not gonna take the risk, you shouldn't be entitled to dividends.
2. the litmus test is if you would buy one at age 60 yourself, if the answer is no, then don't sell them.
I don't know what my situation will be at 60. I am faiirly risk averse and I can see myself owning EIA's at sixty. I own one now and I'm happy with it.
3. Annuities now are ticking tax time bombs. With the lowered long-term capital gains and dividend rates, how can you justify selling this garbage, especially if the plan is handing the money down?
Annuities earn interest, not cap gains. Interest is taxed at the ordinary rate, not CG rates. Why is that so shocking to you?
4. Participation rates capped, average annual returns comparable to burying your money, huge surrender penalties, these are jokes.
You can't have the best of all worlds, can you?
5. Here's a better option, better for the client. Buy a ten year government agency note or insured muni with 60% of the money (that way it guarantees the full return of principal in 10 years) and put the other 40% of the principal in SPY ETF with dividend reinvestment.
How is paying taxes every year, so that the tax payments have no chance of compounding on a tax deferred basis, better than making more money in an EIA?
[/quote]
You've really demonstrated that you don't know too much about EIA's. Here's a good idea for you...go learn about them, see how they can be a good fit for a lot of people, quit assuming that you have to make people a LOT of money to make people happy, and quit fighting the fact that a LOT of money is going into these products.
DD-
Try used cars. Really, you can put yourself first without an ethical moment to consider. Don't forget the patent leather shoes. Always attracts a higher commission.
Whenever a product becomes THE MOST IMPORTANT THING in your bag of tricks, you are doomed. Mr. Diggles will go down and out of the business as soon as his U4 or reputation reflects. My guess and already others on this forum would say sooner than later.
[quote=7yrvet]
DD-
Try used cars. Really, you can put yourself first without an ethical moment to consider. Don't forget the patent leather shoes. Always attracts a higher commission.
Whenever a product becomes THE MOST IMPORTANT THING in your bag of tricks, you are doomed. Mr. Diggles will go down and out of the business as soon as his U4 or reputation reflects. My guess and already others on this forum would say sooner than later.
[/quote]
I happen to love what I do. I'll be the first to admit that it's not for everyone. Why would I want the headaches associated with unhappy clients? I make too much money for that crap. That's why I only take clients who are right for me and my business and refer the rest to a few friends in the office. Of course, they split commissions with me and refer annuity clients to me.
[quote=BankFC]Joe,
What makes you so sure about Dirk? He seems like a complete fraud.
[/quote]
Why would you say that? I don't think YOU'RE a fraud. I believe that you ARE a bank broker with a low payout and a limited menu of things that you can sell.
Poor little Dirk,
I can sell anything you CAN…and more than you DO. I don’t limit
myself to EIA’s. I am an advisor, not just a hack salesman like
you.
[quote=BankFC]Poor little Dirk,
I can sell anything you CAN...and more than you DO. I don't limit myself to EIA's. I am an advisor, not just a hack salesman like you.
[/quote]
Don't tell my bank about it. They think that those direct deposits are real.
Dirk,
1099 income sucks! You have to pay social security twice. Don't tell me about tax benefits I was paid 1099 income for 3 years, the only benefit is you get to see big checks but you don't get to keep them. If that gives you a hard on good for you. It is about what you keep to what you make.
Before you get your start with your antics ... unreimbursed employee expenses...
[quote=bankrep1]
Dirk,
1099 income sucks! You have to pay social security twice. Don't tell me about tax benefits I was paid 1099 income for 3 years, the only benefit is you get to see big checks but you don't get to keep them. If that gives you a hard on good for you. It is about what you keep to what you make.
Before you get your start with your antics ... unreimbursed employee expenses...
[/quote]
If you don't think you're paying for your ER's side of SS, you're a moron. It comes out of the money that they make by pimping you out. The only free lunches come in mousetraps, big boy.
I'm not sure that losing the deductibility of EE expenses below 2% of AGI is better than taking them above the line.
Also, I have a hard time figuring out how a 90-100% payout on a 1099 is worse than a 30% payout on a W-2.
[quote=bankrep1]
Dirk,
1099 income sucks! You have to pay social security twice. Don't tell me about tax benefits I was paid 1099 income for 3 years, the only benefit is you get to see big checks but you don't get to keep them. If that gives you a hard on good for you. It is about what you keep to what you make.
Before you get your start with your antics ... unreimbursed employee expenses...
[/quote]
When one is earning substantially ABOVE the social security ceiling, the other tax benefits(greater ease of deducting expenses) far outweigh the self employment tax....
Dirk, unfortunately you must have fallen on your head as a child, allow me to rebuke your moronism.
1. no one mentioned dividends, what happens to the 2% a year yield on the s&P? That's right, the insurance company.
Wrong. Options are used to generate the growth. Options don't get dividends, therefore the bank doesn't get them. Nice try.
Also, people who don't want their money to be in the market like EIA's. Their money is NOT exposed to market risk. If you're not gonna take the risk, you shouldn't be entitled to dividends.
You make my point. Dividends are important to overall return. Also, options are used only infrequently in EIA's. Take a look at insurance companies statement of financial stability and look at their assets, their primary investment is usually the S&P index to cover their EIA exposure.
3. Annuities now are ticking tax time bombs. With the lowered long-term capital gains and dividend rates, how can you justify selling this garbage, especially if the plan is handing the money down?
Annuities earn interest, not cap gains. Interest is taxed at the ordinary rate, not CG rates. Why is that so shocking to you?
You make my point again. With capital gains and dividends capped at 15% tax, why pay as much as 35% later when you pull the gains out of the annuity? Do the math.
5. Here's a better option, better for the client. Buy a ten year government agency note or insured muni with 60% of the money (that way it guarantees the full return of principal in 10 years) and put the other 40% of the principal in SPY ETF with dividend reinvestment.
How is paying taxes every year, so that the tax payments have no chance of compounding on a tax deferred basis, better than making more money in an EIA?
Did you not read this one? Notice I said government agency note OR INSURED MUNI. If you want compounding, buy a zero. You probably don't even know what a zero is anyway. By the way, once again, do the math the last 50 years on the market. This strategy KILLS the returns in EIA and is 96 percent tax efficient if you use muni zeros.
[quote=youcanhatemenow]
Dirk, unfortunately you must have fallen on your head as a child, allow me to rebuke your moronism.
1. no one mentioned dividends, what happens to the 2% a year yield on the s&P? That's right, the insurance company.
Wrong. Options are used to generate the growth. Options don't get dividends, therefore the bank doesn't get them. Nice try.
Also, people who don't want their money to be in the market like EIA's. Their money is NOT exposed to market risk. If you're not gonna take the risk, you shouldn't be entitled to dividends.
You make my point. Dividends are important to overall return. Also, options are used only infrequently in EIA's. Take a look at insurance companies statement of financial stability and look at their assets, their primary investment is usually the S&P index to cover their EIA exposure.
First, you are assuming that people want to risk their money in the market. People who buy EIA's DON'T want the risk. They UNDERSTAND that they won't meet or beat the market. Fourth, you've really demonstrated what an imbecile you are by not knowing this stuff.
3. Annuities now are ticking tax time bombs. With the lowered long-term capital gains and dividend rates, how can you justify selling this garbage, especially if the plan is handing the money down?
Annuities earn interest, not cap gains. Interest is taxed at the ordinary rate, not CG rates. Why is that so shocking to you?
You make my point again. With capital gains and dividends capped at 15% tax, why pay as much as 35% later when you pull the gains out of the annuity? Do the math.
Most cap gains in index funds are short term, which is taxed EVERY year at the ordinary rate.
It's impossible to pay 35% in income taxes on one's income. Do the math.
5. Here's a better option, better for the client. Buy a ten year government agency note or insured muni with 60% of the money (that way it guarantees the full return of principal in 10 years) and put the other 40% of the principal in SPY ETF with dividend reinvestment.
How is paying taxes every year, so that the tax payments have no chance of compounding on a tax deferred basis, better than making more money in an EIA?
Did you not read this one? Notice I said government agency note OR INSURED MUNI. If you want compounding, buy a zero. You probably don't even know what a zero is anyway. By the way, once again, do the math the last 50 years on the market. This strategy KILLS the returns in EIA and is 96 percent tax efficient if you use muni zeros.
Imputed interest. Go look it up. People have to pay taxes from other sources of cash. I can't believe you opened your big mouth without knowing this. Consider your moronism rebuked.
[/quote][quote=Dirk Diggler]
Most cap gains in index funds are short term, which is taxed EVERY year at the ordinary rate.
[/quote]
Short term cap gains on index funds make up the majority of their gains? Got a source for that one?
[quote=Dirk Diggler]
It's impossible to pay 35% in income taxes on one's income. Do the math.
[/quote]
Uh? The top rate is currently 35%, so what do you mean by this?
[quote=mikebutler222][quote=Dirk Diggler]
Most cap gains in index funds are short term, which is taxed EVERY year at the ordinary rate.
[/quote]
Short term cap gains on index funds make up the majority of their gains? Got a source for that one?
Nope. I made it up.
[quote=Dirk Diggler]
It's impossible to pay 35% in income taxes on one's income. Do the math.
[/quote]
Uh? The top rate is currently 35%, so what do you mean by this?
Standard/itemized deductions bring the marginal rate down to the effective rate. I can't believe that after all of those firms you've been with you haven't picked that up.
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