[quote=deekay]I have a friend/prospect who is being sued for $20mm (true story).  The max umbrella coverage he could get is $10mm.  He's 35 years old and makes over $500k per year.  In my state, his wages could be garnished for the next 21 years if the settlement goes against him.  How much you want to bet he won't be interested in seeing how he can protect what he's accumulated so far?[/quote]

1. If a lawsuit is already pending it is irrelevant. You can use his story to exemplify the need for annuities though

2. If he is being sued for 20mm and settles for >10mm, then he really F'd something up and will be judged fairly

3. I do think annuities have their place (that "guarantee" word) and clients DO deserve the opportunity to choose

[quote=JumpTheShark][quote=joelv72]

OK, client came to me with a VA that was being pitched by a bank advisor.  It had a hypo built in to the presentation that showed what $100K would do over the last 15 years, spread over 4 funds and how much better off they would be with the GMAB.  The only problem is, when I plug the same funds into morningstar (retail, not the insurance line crud), the hypo shows them significantly ahead of the GMAB, even with my advisory fee of 1.25% ($330K vs $365K).  That is with two very steep recessions built in, so you would think this is about as good of a 15 year period you could expect from a VA.  So, to all you annuity slingers, what is your come-back to that?

[/quote] You insult people by calling them "slingers" and expect them to help you? You are pathetic. What do YOU sling? Have you noticed that no annuity slinger has ever come here asking how to compete against a mutual fund slinger? You're going to lose some more assets to an annuity! Sucks to be you.[/quote]

Why would I want/or need an annuity salesman's help?  You know as well as I do that there are people that are prolific posters on this board that deal almost exlcusively in annuities.  If you would have actually read the post, you would see I was merely making a point and seeing if anyone in the annuity world could counter it.  I am actually gaining assets housed at the bank (CD's) that they tried to move into an annuity since their rates are in the crapper.  When the client saw through the fog, they decided to move here.

[quote=joelv72]

OK, client came to me with a VA that was being pitched by a bank advisor.  It had a hypo built in to the presentation that showed what $100K would do over the last 15 years, spread over 4 funds and how much better off they would be with the GMAB.  The only problem is, when I plug the same funds into morningstar (retail, not the insurance line crud), the hypo shows them significantly ahead of the GMAB, even with my advisory fee of 1.25% ($330K vs $365K).  That is with two very steep recessions built in, so you would think this is about as good of a 15 year period you could expect from a VA.  So, to all you annuity slingers, what is your come-back to that?

[/quote]

Joel,  My comeback is to tel them upfront that a VA will give them less money because of the additional fees.  However, that assumes that they will invest in the exact same manner in the VA that they would with the mutual funds.  I then explain that because of their risk tolerance, we would have to invest much more conservatively if we use mutual funds, so our choice is to be aggressive in a VA or conservative in a mutual fund.  I find that the true value of the guarantees of a VA is how they positively impact investor behavior.

[quote=JumpTheShark]Joel, only registered reps can give advice on VA's. Show them what you do and let them decide what's right for themselves.[/quote]

That's is one of the most retarded statements ever made on this forum.  I can give my clients advice on any of their investment assets, whether it was originated by me or not.  As far as an RIA originating a VA, google "No Load Variable Annuity".  Prudential, Fidelity, Vanguard, Pacific Life, the list goes on.  There is actually one out there that charges $20/month regardless of size, and has around 200 funds to choose from in the separate account.

[quote=JumpTheShark][quote=joelv72]

[quote=JumpTheShark]Joel, only registered reps can give advice on VA's. Show them what you do and let them decide what's right for themselves.[/quote]

That's is one of the most retarded statements ever made on this forum.  I can give my clients advice on any of their investment assets, whether it was originated by me or not.  As far as an RIA originating a VA, google "No Load Variable Annuity".  Prudential, Fidelity, Vanguard, Pacific Life, the list goes on.  There is actually one out there that charges $20/month regardless of size, and has around 200 funds to choose from in the separate account.

[/quote] I apologize. I didn't realize that you were an RIA with under $100,000 in assets on his ADV. I hope you can break the $100,000 mark this year. By the way...slamming the competition never works too well.[/quote]

But it sure is fun, especially if thats all you got. 

[quote=JumpTheShark][quote=joelv72]

[quote=JumpTheShark][quote=joelv72]

[quote=JumpTheShark]Joel, only registered reps can give advice on VA's. Show them what you do and let them decide what's right for themselves.[/quote]

That's is one of the most retarded statements ever made on this forum.  I can give my clients advice on any of their investment assets, whether it was originated by me or not.  As far as an RIA originating a VA, google "No Load Variable Annuity".  Prudential, Fidelity, Vanguard, Pacific Life, the list goes on.  There is actually one out there that charges $20/month regardless of size, and has around 200 funds to choose from in the separate account.

[/quote] I apologize. I didn't realize that you were an RIA with under $100,000 in assets on his ADV. I hope you can break the $100,000 mark this year. By the way...slamming the competition never works too well.[/quote]

But it sure is fun, especially if thats all you got. 

[/quote] when you advise people on insurance products, do you let them know that you don't have an insurance license and that you are breaking the law?[/quote]

I actually do have an insurance license.  I just don't sell commish product.  I refer that out to a local guy.  Next??

Hey there, Biofreeze, I mailed it in a couple of weeks ago due to the fact my previous BD couldn't get there ass in gear.  In the meantime, I do not need a license to offer advice if I am not offering any product.  I really don't see how studying for half a day to take a really cheesy test somehow makes you a grand pubaa.  BTW, Bobby, are you looking at my personal information from an outside forum which you help administer?  I call bad on that one.  How long until FINRA lets you back in or are you banned for life?

Oh, I see you logged off.  Cat got your tounge?

[quote=JumpTheShark][quote=joelv72]

Hey there, Biofreeze, I mailed it in a couple of weeks ago due to the fact my previous BD couldn't get there ass in gear.  In the meantime, I do not need a license to offer advice if I am not offering any product.  I really don't see how studying for half a day to take a really cheesy test somehow makes you a grand pubaa.  BTW, Bobby, are you looking at my personal information from an outside forum which you help administer?  I call bad on that one.  How long until FINRA lets you back in or are you banned for life?

[/quote] You mailed in your license? What does a b/d have to do with it? It's illegal to give advice on products that you are not licensed to sell. I'm someone that you know personally. How do you think I'm catching you in your lies?[/quote]

I guaranty you, you do not know me personally, but you are using personal information you have access to as admin of another forum.  I passed the test a long time ago, but for one reason or another the application never made it to the state, that was my former B/D not mailing it in, and I guess my bad too for not noticing it.  I didn't sell and do not intend to sell insurance so it was never an issue.  BTW, I can give all the free advice in the world. 

[quote=JumpTheShark][quote=joelv72]

[quote=JumpTheShark][quote=joelv72]

Hey there, Biofreeze, I mailed it in a couple of weeks ago due to the fact my previous BD couldn't get there ass in gear.  In the meantime, I do not need a license to offer advice if I am not offering any product.  I really don't see how studying for half a day to take a really cheesy test somehow makes you a grand pubaa.  BTW, Bobby, are you looking at my personal information from an outside forum which you help administer?  I call bad on that one.  How long until FINRA lets you back in or are you banned for life?

[/quote] You mailed in your license? What does a b/d have to do with it? It's illegal to give advice on products that you are not licensed to sell. I'm someone that you know personally. How do you think I'm catching you in your lies?[/quote]

I guaranty you, you do not know me personally, but you are using personal information you have access to as admin of another forum.  I passed the test a long time ago, but for one reason or another the application never made it to the state, that was my former B/D not mailing it in, and I guess my bad too for not noticing it.  I didn't sell and do not intend to sell insurance so it was never an issue.  BTW, I can give all the free advice in the world. 

[/quote] Interesting....you applied to take the exam after you took the exam? You are lying. What the hell is this other forum that you are talking about?[/quote]

Application for licensure, which you must send in AFTER passing the test.  Now I'm starting to wonder if you are licensed.