“I work in a wirehouse, this is not allowed.  Subaccounts must match the risk tolerence of the investor.  I can’t say that I disagree with this policy.”

  This explains a lot because it forces your hand.  If I had to follow this rule, I also would not use VA's for accumulation.  It's much tougher for a VA to influence investor behavior if a conservative investor still has to invest in a conservative manner.  The major value to me of the guarantee is the ability for someone to invest above their tolerance for risk because the guarantee takes away a large portion of the risk.   Here's a typical example of how I might use a VA.  The client has an existing IRA or old retirement account.  In order to achieve their retirement goal, they need an 8% return for the next 10 years.  Their tolerance for risk is low.  What are our choices in this scenario?  1) Invest according to their risk tolerance.  2) Invest above their risk tolerance.  3)Invest above their risk tolerance but have a guarantee.  4) Tell them that they can't achieve their goal.   Results: 1) Choice 1: They'll be guaranteed to not achieve their goal. 2) Choice 2: Probably can't get the sale through compliance.  If we do, we need to be prepared to be sued.  If the market goes down, they will sell and be in a worse position than putting the money in their matress. 3) Choice 3: If the market does really well, they will achieve their goal.  If the market doesn't do well, they won't achieve it.  However, the guarantee should make the sale suitable (except with your BD).  If the market goes down, they won't get out because of the guarantee.   No matter how bad things get, they know the worst case scenario. 4) Without investing aggressive, it sure seems like this is what has to be done along with choice #1.   Primo, how specifically do you deal with a conservative client who can't reach their goal by investing in a conservative manner?   Why do you abhor annuitization?  It's not always appropriate, but a guaranteed stream of income makes sense in lots of situations (using competetive SPIA rates and not the BS rates that are used in the VA contracts).

[quote=Vin Diesel]

 If you sold VA's with Income or Accumulation Riders in the last 2 years, You are looking like a Hero!

[/quote]   Agreed.  I just hope my annuity carriers will be able to pay the claims.

[quote=Vin Diesel]

 If you sold VA's with Income or Accumulation Riders in the last 2 years, You are looking like a Hero!

[/quote]   Unless they have a need for liquidity or their insurance carrier goes under.  Allstate just fired their entire VA sales force and is no longer offering them. 

yes, but allstate is still around and honoring existing contracts. in fact , aig is still around.

all im saying is clients recieving statements that show *guaranteed value* are much happier than wrap account clients with NO Guarantees and Fully Transparent Fees