[quote=anonymous]

  I sold a traditional fixed annuity today.  The product that I sold, guarantees 4.25% the first year and 2.25% the second year.  For the third year and beyond, it is guaranteed to pay at least 2%, but the actual payment will primarily be based upon the rates of 10 year treasuries.  In other words, the rate will fluctuate every year, but is guaranteed to be at least 2%.  [/quote]   Uh, not for nothing, but why doesn't the client just buy 10-year treasuries and make more?  I also assume there is a cap, like 7% or something.

[quote=B24][quote=anonymous]

  I sold a traditional fixed annuity today.  The product that I sold, guarantees 4.25% the first year and 2.25% the second year.  For the third year and beyond, it is guaranteed to pay at least 2%, but the actual payment will primarily be based upon the rates of 10 year treasuries.  In other words, the rate will fluctuate every year, but is guaranteed to be at least 2%.  [/quote]   Uh, not for nothing, but why doesn't the client just buy 10-year treasuries and make more?  I also assume there is a cap, like 7% or something.[/quote] Annuitization options Tax-Deferral Creditor-protection (depending on the state) 10% (or more) per year withdrawal penalty-free

None of which you get with a Treasury. 

[quote=B24][quote=anonymous]

  I sold a traditional fixed annuity today.  The product that I sold, guarantees 4.25% the first year and 2.25% the second year.  For the third year and beyond, it is guaranteed to pay at least 2%, but the actual payment will primarily be based upon the rates of 10 year treasuries.  In other words, the rate will fluctuate every year, but is guaranteed to be at least 2%.  [/quote]   Uh, not for nothing, but why doesn't the client just buy 10-year treasuries and make more?  I also assume there is a cap, like 7% or something.[/quote]   If interest go up, is her 10-year treasury going to start paying more?  If interest rates go down, does the value of her 10 year treasury go down?   There is no cap.  Better yet, the surrender charges are non-rolling.   What does this mean?  It means that if someone bought this product 6 years ago and they are now older than 59 1/2, they have a place that they can stick money for one year and get 4.25% with no risk.