pratoman:

[quote=Hobby Bull] Liar.

  Whatever, made my point.[/quote]

Prato, empty your inbox.

[quote=newnew]

  AMEN. I see this ALMOST EVERY TIME--and again this week. You folks say you explain it, and you do (I used to, and still do-rarely-but with no load/no CDSC annuities only-- IF ITS ABOUT INCOME), but unless you repeat it monthly forever, only maybe 10% "get it" that it's not a 6% "return".   It IS about the commission. That's fine, but let's call it was it is. Or start selling the no-load GMWB if it is not.[/quote]   If the insurance company wants to pay me 7.5% upfront or 4% upfront and 1% trail, why should I penalize myself for doing the right thing if it's best for the client?  You can't generalize people like that.  It's like that whole Dateline episode on EIA's.  Not everyone who sells an EIA is bad.   People know the commission can be high.  Why try to hide it?  I would have no problem telling someone how much I make on it because I know if the situation is right, it's the best thing for them.   I used to work with a guy at ML that would charge the full 3% or whatever the max was to all his managed money clients.  I'm sure he's not the only one doing that.   For what it's worth, about 30% of my book is VA's.  But I believe in the product so much that I would rather seek out those that it fits well for as they are happier clients for me.  I would much rather work for them.    I know I explain everything I can about the annuity, which is why I have lost a couple sales.  People will walk away from it if they feel stupid or confused, even though I knew it would be of great benefit to them.    Just rambling a little....

True, I generalized. But in general, I find that many brokers (esp at banks), while they can legally and technically say that they explained it all and gave a prospectus (big deal), actually “spin” it to get the sale and the commision. Then later the client either 1. believes what he thinks he heard and is blissfully ignorant or 2. realizes (too late! Gotcha w/the CDSC!) that in fact the principal is dependent on the stock market to some degree and is now dropping. No 6% “return”.

  Many, many angry people when I explain it with no spin. If you do not need/take the income, there is no 6% return, no princ guar, etc. In fact, your princ drops FASTER due the cost (that GMWB is being charged even though you do not need income! Then there is this cost and that cost....)   My annuity is all in for less than half. I take 50bps only, with Vanguard subaccounts (25 bps), no CDSC, a 55 bp M & E, and a GMWB that is FREE unless activated.   But now with falling principals back to about the amount invested, we can just cash out.