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Ok, not brandnew, but with a deadpipeline. How are some of you doing production of $6K a month on new clients?
Private REIT’s. Some paying 6-6.5% dividends. Sell them on tax benefits (Not really great actually, but its sort of a tax strategy) and consistent dividends. Don’t use companies that are highly leveraged or run the risk of cutting off dividends or slashing share value (Inland Western). Pays you 5%.
Fixed annuities. Some of them are paying bonus rates for the 1st year and guarantee of 3-4% for 1st several years. Pays you 5-5.5%, maybe different depending on where you work. Read the compensation reference guide for your company to see what pays you what. Then you'll know what to do.Yeah, just got finished reviewing my sister's accounts. Her "friendly local home-town RIA" rolled all of her previous 401K money into an IRA (Individual Retirement Annuity) with a 12% over 12 year CDSC. He also opened two roth's for her and my brother-in-law, and deployed the money 100% into a private REIT with a 16% CDSC. If you ask me, this is why this industry has ended up where it is. You guys are wolves in sheep clothing...
Our company doesn't allow us to offer annuities that have more than a 10 year surrender period. I'm sorry she was put 100% into a REIT for the Roth's. We are not allowed to put more than 10% of a clients net worth into private REIT's. There should be more regulation at whatever firm the "friendly RIA" works at, I don't know how someone can get away with putting 100% of multiple accounts into REIT's.
[quote=Hank Newbie]
Yeah, just got finished reviewing my sister's accounts. Her "friendly local home-town RIA" rolled all of her previous 401K money into an IRA (Individual Retirement Annuity) with a 12% over 12 year CDSC. He also opened two roth's for her and my brother-in-law, and deployed the money 100% into a private REIT with a 16% CDSC. If you ask me, this is why this industry has ended up where it is. You guys are wolves in sheep clothing...
[/quote] Hank - it seems odd that an RIA would recommend an annuity like that (at least from my perspective, other RIA guys feel free to correct me), when they can provide no-load, no-surrender annuities, but there are crooks in every line of this business.My guess is this guy has no mind of his own and has had someone's kool-aid (insurance and reit salesmen). I guess you Jones guys don't have the market cornered on that stuff!
Is this really that hard?
Land one $600,000 account and drop a ticket for C shares.
[quote=Moraen] [quote=Hank Newbie]
Yeah, just got finished reviewing my sister’s accounts. Her “friendly local home-town RIA” rolled all of her previous 401K money into an IRA (Individual Retirement Annuity) with a 12% over 12 year CDSC. He also opened two roth’s for her and my brother-in-law, and deployed the money 100% into a private REIT with a 16% CDSC. If you ask me, this is why this industry has ended up where it is. You guys are wolves in sheep clothing…
[/quote]Hank - it seems odd that an RIA would recommend an annuity like that (at least from my perspective, other RIA guys feel free to correct me), when they can provide no-load, no-surrender annuities, but there are crooks in every line of this business. [/quote]
I would reiterate that how you are paid - fee or commission - does not determine how ethical you are. Scum bags are scum bags, and honest folks are honest, regardless of their method of compensation.
Having said that, how do you know from looking at these statements that this is an RIA and not a registered rep affiliated with an independent broker dealer? This type of product with long CDSCs are almost exclusively sold through a b/d channel and not an RIA, since the CDSCs go hand-in-hand with paying large upfront commissions which must be recouped over time, and the only way for an RIA to accept commissions is if he is also a RR affiliated with a b/d, and sells the product through that channel.
So what specifically tells you that these products were sold by an RIA and not a RR via a b/d?
[quote=3rdyrp2]
Our company doesn't allow us to offer annuities that have more than a 10 year surrender period. I'm sorry she was put 100% into a REIT for the Roth's. We are not allowed to put more than 10% of a clients net worth into private REIT's. There should be more regulation at whatever firm the "friendly RIA" works at, I don't know how someone can get away with putting 100% of multiple accounts into REIT's.
[/quote] My training has induced a pavlovian gag reflex to variable annuities in general except in special circumstances (much less anything over say 6-7 years), and a private REIT in any situation. To me they look like the old limited partnership investment pitched in a different way. Moraen, I work for Jones, so get over it. I think all new Jones trainees will tell you the same thing regarding the way we have been drilled on these topics. My territory is underserved as far as true full service brokerage goes. Lots of Annuity slingers running around selling their products regardless of the true client need.[quote=Hank Newbie][quote=3rdyrp2]
Our company doesn't allow us to offer annuities that have more than a 10 year surrender period. I'm sorry she was put 100% into a REIT for the Roth's. We are not allowed to put more than 10% of a clients net worth into private REIT's. There should be more regulation at whatever firm the "friendly RIA" works at, I don't know how someone can get away with putting 100% of multiple accounts into REIT's.
[/quote] My training has induced a pavlovian gag reflex to variable annuities in general except in special circumstances (much less anything over say 6-7 years), and a private REIT in any situation. To me they look like the old limited partnership investment pitched in a different way. Moraen, I work for Jones, so get over it. I think all new Jones trainees will tell you the same thing regarding the way we have been drilled on these topics. My territory is underserved as far as true full service brokerage goes. Lots of Annuity slingers running around selling their products regardless of the true client need.[/quote]What makes someone NEED common stock or mutual funds that can lose all of their money?
[quote=Morphius] [quote=Moraen] [quote=Hank Newbie]
Yeah, just got finished reviewing my sister's accounts. Her "friendly local home-town RIA" rolled all of her previous 401K money into an IRA (Individual Retirement Annuity) with a 12% over 12 year CDSC. He also opened two roth's for her and my brother-in-law, and deployed the money 100% into a private REIT with a 16% CDSC. If you ask me, this is why this industry has ended up where it is. You guys are wolves in sheep clothing...
[/quote]Hank - it seems odd that an RIA would recommend an annuity like that (at least from my perspective, other RIA guys feel free to correct me), when they can provide no-load, no-surrender annuities, but there are crooks in every line of this business. [/quote]
I would reiterate that how you are paid - fee or commission - does not determine how ethical you are. Scum bags are scum bags, and honest folks are honest, regardless of their method of compensation.
Having said that, how do you know from looking at these statements that this is an RIA and not a registered rep affiliated with an independent broker dealer? This type of product with long CDSCs are almost exclusively sold through a b/d channel and not an RIA, since the CDSCs go hand-in-hand with paying large upfront commissions which must be recouped over time, and the only way for an RIA to accept commissions is if he is also a RR affiliated with a b/d, and sells the product through that channel.
So what specifically tells you that these products were sold by an RIA and not a RR via a b/d?
[/quote] It is possible I have that wrong. It is a single advisor independent office. His name with "Wealth Mangagement and Retirement Services" after it and is incorporated as his own business. RIA, or whatever, my sister and brother-in-law had no idea how he was compensated until I let them know. Needless to say, they weren't happy. She is stuck in that annuity until the CDSC at least comes down to a reasonable level. And depending on what I can dig up on the REIT, it may be the same there. Regardless of the fees, just the fact that he rolled a 401K for a 30 something year old woman into a variable annuity throws up red flags and sets off sirens to me.
Hank, I thought the same thing but what’s so bad about a VA with an income guarantee? Now that I’m responsible for peoples money I think it’s okay to give up a % or two in performance to give them the peace of mind they’ll actually have money to retire on.
It is possible I have that wrong. It is a single advisor independent office. His name with “Wealth Mangagement and Retirement Services” after it and is incorporated as his own business. RIA, or whatever, my sister and brother-in-law had no idea how he was compensated until I let them know. Needless to say, they weren’t happy. She is stuck in that annuity until the CDSC at least comes down to a reasonable level. And depending on what I can dig up on the REIT, it may be the same there. Regardless of the fees, just the fact that he rolled a 401K for a 30 something year old woman into a variable annuity throws up red flags and sets off sirens to me.
Good lesson to learn: not all small single advisor independent offices are RIAs, just as not all small single advisor offices are EDJ offices.
You should also begin to expand your knowledge beyond whatever you are fed in training and such regarding use of VAs inside an IRA, and you will find that this is NOT always a bad idea, depending on the the client and the circumstances. Forget the unnecessary tax deferral canard - today's VAs are all about living benefit guarantees. Ask those clients with living benefit guarantees inside an IRA over the past year or so if they wish they had been in mutual funds instead.
[quote=Morphius] [quote=Hank Newbie] It is possible I have that wrong. It is a single advisor independent office. His name with “Wealth Mangagement and Retirement Services” after it and is incorporated as his own business. RIA, or whatever, my sister and brother-in-law had no idea how he was compensated until I let them know. Needless to say, they weren’t happy. She is stuck in that annuity until the CDSC at least comes down to a reasonable level. And depending on what I can dig up on the REIT, it may be the same there. Regardless of the fees, just the fact that he rolled a 401K for a 30 something year old woman into a variable annuity throws up red flags and sets off sirens to me.
[/quote]Good lesson to learn: not all small single advisor independent offices are RIAs, just as not all small single advisor offices are EDJ offices.
You should also begin to expand your knowledge beyond whatever you are fed in training and such regarding use of VAs inside an IRA, and you will find that this is NOT always a bad idea, depending on the the client and the circumstances. Forget the unnecessary tax deferral canard - today's VAs are all about living benefit guarantees. Ask those clients with living benefit guarantees inside an IRA over the past year or so if they wish they had been in mutual funds instead. [/quote] I think the controlling factor here is "30 something year old". Sure, if she were about to retire, maybe. I don't think you will ever be able to explain to me why a VA with a 12% CDSC amortized over 12 years is a product that is doing what is right for the client. BTW, the underlying investments are still down 36% over last year. The investment vehicle itself is crap!
Those who bash advisors who put qualified plans into annuities are too shortsighted to see that tax deferral is not the only selling point of an annuity, or the only reason someone would be interested in investing into an annuity.
[quote=Hank Newbie][quote=Morphius] [quote=Hank Newbie] It is possible I have that wrong. It is a single advisor independent office. His name with “Wealth Mangagement and Retirement Services” after it and is incorporated as his own business. RIA, or whatever, my sister and brother-in-law had no idea how he was compensated until I let them know. Needless to say, they weren’t happy. She is stuck in that annuity until the CDSC at least comes down to a reasonable level. And depending on what I can dig up on the REIT, it may be the same there. Regardless of the fees, just the fact that he rolled a 401K for a 30 something year old woman into a variable annuity throws up red flags and sets off sirens to me.
[/quote]Good lesson to learn: not all small single advisor independent offices are RIAs, just as not all small single advisor offices are EDJ offices.
You should also begin to expand your knowledge beyond whatever you are fed in training and such regarding use of VAs inside an IRA, and you will find that this is NOT always a bad idea, depending on the the client and the circumstances. Forget the unnecessary tax deferral canard - today's VAs are all about living benefit guarantees. Ask those clients with living benefit guarantees inside an IRA over the past year or so if they wish they had been in mutual funds instead. [/quote] I think the controlling factor here is "30 something year old". Sure, if she were about to retire, maybe. I don't think you will ever be able to explain to me why a VA with a 12% CDSC amortized over 12 years is a product that is doing what is right for the client. BTW, the underlying investments are still down 36% over last year. The investment vehicle itself is crap![/quote] What is the death benefit and/or living benefit remaining on the contract? Not that it'll matter at this moment, but having that guaranteed benefit in case anything happened to her is valuable.
Wow!! And you accuse us Jones reps of drinking Kool-Aid. I guess that shiny new Porsche helps you sleep better at night.Those who bash advisors who put qualified plans into annuities are too shortsighted to see that tax deferral is not the only selling point of an annuity, or the only reason someone would be interested in investing into an annuity.
[quote=3rdyrp2][quote=Hank Newbie][quote=Morphius] [quote=Hank Newbie] It is possible I have that wrong. It is a single advisor independent office. His name with “Wealth Mangagement and Retirement Services” after it and is incorporated as his own business. RIA, or whatever, my sister and brother-in-law had no idea how he was compensated until I let them know. Needless to say, they weren’t happy. She is stuck in that annuity until the CDSC at least comes down to a reasonable level. And depending on what I can dig up on the REIT, it may be the same there. Regardless of the fees, just the fact that he rolled a 401K for a 30 something year old woman into a variable annuity throws up red flags and sets off sirens to me.
[/quote]Good lesson to learn: not all small single advisor independent offices are RIAs, just as not all small single advisor offices are EDJ offices.
You should also begin to expand your knowledge beyond whatever you are fed in training and such regarding use of VAs inside an IRA, and you will find that this is NOT always a bad idea, depending on the the client and the circumstances. Forget the unnecessary tax deferral canard - today's VAs are all about living benefit guarantees. Ask those clients with living benefit guarantees inside an IRA over the past year or so if they wish they had been in mutual funds instead. [/quote] I think the controlling factor here is "30 something year old". Sure, if she were about to retire, maybe. I don't think you will ever be able to explain to me why a VA with a 12% CDSC amortized over 12 years is a product that is doing what is right for the client. BTW, the underlying investments are still down 36% over last year. The investment vehicle itself is crap![/quote] What is the death benefit and/or living benefit remaining on the contract? Not that it'll matter at this moment, but having that guaranteed benefit in case anything happened to her is valuable. [/quote] Thought about that too. I feel soooo much better knowing that if she dies, my brother-in-law will have that much more money to blow on his next wife.
Do you really think a VA inside a Roth IRA is the most efficient way for a 30 year old to save for retirement? "Yes Mr. Advisor, I'd like to give up 3-4% per year for thirty years." Don't need or want the death benefit or living benefit. That's why they have life and disability insurance. They need growth and tax deferral. In 30 years when she retires then maybe but not now. This is why annuity salespeople get a bad name. Annuities are appropriate in certain circumstances but I will be hard pressed to believe this is best for her.
Me too...the account in question though was an old 401(k) rolled into a VA. I have no idea of anything about this person, except she's a married female in her 30's. I couldn't tell you if a VA is appropriate at all for her or not. I don't condone anything the salesman did, considering the annuity we're talking about it one w/a 12 year CDSC and a REIT with a 16% surrender. I've never heard of a REIT like that, so this guy has to be shady as hell. The reason I asked about the living/death benefit is because although the investments are down 36% over the past year, the contract value may be much higher than that as long as the money stays in the annuity. If I were Hank I'd ask his sister what made them decide to go with the annuity. Was it the only option given to them? They signed the paperwork so it'd be nice to know what made them decide "Yes, this sounds like a great idea for my old 401(k)". Do you have that info, Hank?
Wow!! And you accuse us Jones reps of drinking Kool-Aid. I guess that shiny new Porsche helps you sleep better at night.[/quote] This is anything but a kool-aid statement. You said in an earlier post that the guy put her 401(k) into an IRA (Individual Retirement Annuity). By bolding the word "annuity" you came across as someone who has a problem with putting an IRA inside an annuity. Most people who don't like the idea of an IRA inside an annuity use the reasoning of "Why would we need an annuity if the IRA is already tax-deferred?". You may not have that belief, and if so then I apologize for coming across as smug. For those who have that belief though, they are wrong.[quote=3rdyrp2]Those who bash advisors who put qualified plans into annuities are too shortsighted to see that tax deferral is not the only selling point of an annuity, or the only reason someone would be interested in investing into an annuity.