Indexed Annuities
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I'm sorry, I'm looking over what I wrote and worded it improperly. Yes it is invested in fixed income and tied to equity-based returns.
I'm trying to do 50 things over here right now. I apologize.I’m really just giving you a hard time. It’s obvious you’re working to help your clients find ways to avoid getting burned again in the future. This has been brutal.
[quote=YHWY]Or, how about this, even better:
Protective – ProSaver Platinum
Rate Structure: 6.20% for 7 years (6.45% for deposits 100K+)
CDSC: 6,6,5,4,3,2,1%
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Not bad. What’s the commission?
Maybe your lack of knowledge is scary. I know what I'm looking at.[/quote][quote=YHWY]snaggletooth: “The FIA isn’t invested in fixed income. In one I’ve looked at, you are invested in 100% equities.”
If that is really the case, then that is the only one of its kind I’ve ever heard of. Every EIA (or whatever the new handle is, FIA, whatever) ARE, in fact fixed annuities. The interest rate paid is based on growth of a particular index, with, as you’ve mentioned caps and “participation rates” muddying that interest calculation. Unless you’ve discovered a completely new product, your lack of product knowledge is scary.
Snags, give me a call.
Commission on Protective Prosaver Platinum 7 is 2%. The client actually has a chance to make some money on this one. (And no, I have not and probably will not ever sell this product. Default risk not withstanding, I don’t work willingly for 2% either.)
[quote=YHWY]Commission on Protective Prosaver Platinum 7 is 2%. The client actually has a chance to make some money on this one. (And no, I have not and probably will not ever sell this product. Default risk not withstanding, I don’t work willingly for 2% either.)
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Why not? I’ll do a slam dunk for 2%.
Because, frankly, very few of my clients would be best served with a traditional fixed rate annuity at this point. Secondly, I am far from comfortable with that carrier’s financial strength, to the point where I’d be unwilling to sell it as “gauranteed” without going into detail as to how these products work and the investment’s effect, should the carrier fail.These are some of the reasons why I would not sell it willingly for 2%.
[quote=YHWY]Because, frankly, very few of my clients would be best served with a traditional fixed rate annuity at this point. Secondly, I am far from comfortable with that carrier’s financial strength, to the point where I’d be unwilling to sell it as “gauranteed” without going into detail as to how these products work and the investment’s effect, should the carrier fail.These are some of the reasons why I would not sell it willingly for 2%.
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So…where DO you have y our client’s money?
My business mix is comprised mostly of balanced, income producing mutual funds and, for those who do want additional protection, I use the same stable of funds within a variable annuity that carries a lifetime income rider (understanding that this doesn’t take ALL the risk away). Also, I use high quality, mostly insured (and, yes, an insurer could fail) tax-free municipal bonds. For my more aggressive clients, I use some some individual dividend-paying common stocks and investment-grade corporate bonds, although not so much lately (on the corporate bonds), for obvious reasons. If you want, give me a call and I can do a quick portfolio review for you.
[quote=YHWY]My business mix is comprised mostly of balanced, income producing mutual funds and, for those who do want additional protection, I use the same stable of funds within a variable annuity that carries a lifetime income rider (understanding that this doesn’t take ALL the risk away). Also, I use high quality, mostly insured (and, yes, an insurer could fail) tax-free municipal bonds. For my more aggressive clients, I use some some individual dividend-paying common stocks and investment-grade corporate bonds, although not so much lately (on the corporate bonds), for obvious reasons. If you want, give me a call and I can do a quick portfolio review for you.
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No wonder you hate guaranteed products! You believe risking people’s principal. To each, his own.
[quote=YHWY]So do you (believe in risking client’s principal) you just don’t admit it.
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I don’t know what you asked ,but the answer is none of your business. Please excuse my absence, I have to make a phone call to do a little $55,000 index annuity ticket.
[quote=YHWY]Goodbye, Hank. Go make some money.
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Done. What’s 8% of $55,000?
[quote=Hank Moody]
[quote=YHWY]Goodbye, Hank. Go make some money.
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Done. What’s 8% of $55,000?
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Criminal?
Or is it? Over 10 years, he'll get paid 80 bps per year to manage those assets. If it was fee based and he was charging the typical 1.25% per year, he would make 12.5% over the 10 years.[quote=Hank Moody] [quote=YHWY]Goodbye, Hank. Go make some money. [/quote]
Done. What’s 8% of $55,000?
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Criminal?
The client for 10 years.What’s there to “manage” in an indexed annuity?
I’m gonna call it… Hank’s that guy… the one that your sweet little old lady clients tell you about that sold them a crappy Allianz annuity and they are stuck getting 2.75% and have a 13 year surrender schedule…
[quote=Chuck]I’m gonna call it… Hank’s that guy… the one that your sweet little old lady clients tell you about that sold them a crappy Allianz annuity and they are stuck getting 2.75% and have a 13 year surrender schedule… [/quote]
Chick, let’s finish the story…
…blah blah 13 year surrender schedule and I hate his guts because he has placed her in a product that I can’t make any money off of.