Dirk said:

I'm White and Jewish. My diggler can't be bigger than yours.

Reply:

What, did they shave a little too close during the circumcision?

[quote=Dirk Diggler]

You people are quick to assume that I don't know what I'm doing or that I'm out to screw people. [/quote]

Fair or not, that's the sort of responses you'll get when most every post has an I-get-paid-X%-on-every-dollar-I-place component to it. Dipping into making things up, name calling, threats and attempts to leverage the lack of anonymity on the part of some here while jealously guarding your own makes the picture even worse. Perhaps if we can get past all of that we have have a useful exchange here and not a food fight.

[quote=joedabrkr]

Ok guys-I realize that some of this was playful jesting and spirited debate.  Some of it, however, is not.  This forum can be entertaining and useful, and I'd hate to see it get out of control.

I'm not calling for censorship from anyone else.  We all know how we feel about that.  I am calling for a little bit of restraing and maturity.  Just a little bit, though, as certainly we want to keep having fun! ;-)

[/quote]

Joe, with all due respect, this shouldn't be addressed to "guys", there's a single party that turned two straight forward questions on assertions made into a series of threats and name calling. We shouldn't have to beat around the bush as to who's the culprit here. The fact is he's doing it on several threads.

[quote=dude]

Dirk said:

 I don't assume that the public is as stupid as you do. People love my frank, candid approach to them.

Reply:

I appreciate that you are frank and cadid, never the less I have worked with some extraordinarily educated people, who struggle with understanding investing basics.

I equate it to this:

I am an accomplished musician and assuming that you are not, if I sat down and tried to explain to you (however candidly) the basics of music theory; including modes, harmonic relationships of intervals, circle of fifths, time signature and rhythm; your head would be spinning before I even got through explaining to you why the Aeolian mode and the major scale (ionian mode) have the same exact notes yet sound very different.  Same goes for an auto mechanic trying to explain why the anti-matter combustion chamber needs to have it's positronic fluid checked and that it is the proper viscosity so the Flumer coils don't overheat.

Point is, your clients don't understand it no matter how candidly you explain it.  If they were capable of understanding it they wouldn't need to rely on trusting you to buy it themselves (and save on the 10% commission).  People love the confidence that a frank approach offers, not the data.

[/quote]

The people I work with don't care HOW things work. They want to know WHAT it will do for them. Do you need to understand how to fly an airplane in order to get on one? I'm done with you. You're an idiot and I have an appointment in half an hour to get ready for, to add $100,000 to an existing annuity. It's so easy to sell someone something that they already have. I love this business!

[quote=Dirk Diggler]

I'm White and Jewish. My diggler can't be bigger than yours.

Just to set the record straight. I ONLY do business with people who need what I do. That's it. Period. I have a very narrow focus. I know it sounds crazy, but my business has exploded since I committed to this approach. Criticizing me is like criticizing a heart surgeon because he doesn't do brain surgery. It makes you guys look really dumb.

I'm not interested in being a jack of all trades, like you guys are. It doesn't pay as well. There's a million of you out there. How many guys do you know that are positioned in people's minds as annuity specialists?

You people are quick to assume that I don't know what I'm doing or that I'm out to screw people. You couldn't be more wrong on both points. Are you guys aware that there is a direct relationship between telling the whole truth and closing the sale? I give people more credit for being smart enough to take in all the facts and arrive at a good decision. I don't assume that the public is as stupid as you do. People love my frank, candid approach to them.

I don't have a problem helping people understand what I do. If they don't understand, they're out. Just because YOU can't explain things clearly doesn't mean that I can't.

Now, go put some numbers on the board so your boss will let you have your chair back.

[/quote]

DD-This kinda speaks to my point a few posts ago.  This was a great post until the last couple of sentences where you just HAD to take swipes at the other fellow(s) with opposing opinions.

As others have pointed out I tend to be a little sarcastic, so I understand the temptation.  But-in the case of this ongoing debate, it has the effect of throwing gasoline on the fire of personal conflicts and clouding the substance of the relevant discussion.

Look, ultimately this is a place where you are free to share your opinion, but I had to throw in my 2 cents worth.

Joe, I love you like a brother, but when a bunch of people who think they know what they're talking about start proving that they don't, I'm gonna spank them a little.

It's all just a bunch of words on the computer screen. None of us should take this stuff too seriously. I'm sorry if I've hurt anyone's feelings. Mine haven't been hurt in the least. Sociopathy sure has it's rewards!

Actually, Mike, there is no "phase out" on deductions on 1099 income when you are directly matching business expenses against that income.  At least not as I understand it.  I'll know more in a few weeks when I get my taxes wrapped up.

You are correct Joe.   Expenses and deductions are generally a direct write off in the tax year they are incurred, with the exception of items that are amortized.  For instance if you own your building, as my husband does for his business, we take the deduction over many years.  Large equipment, such as backhoes and tractors, are depreciated over a few years for the initial capital investment, and interest expense can also be a deduction. Of course there is recaputure if the asset is sold.

This is one of the best parts of being independent. You can really take advantage of good tax planning to reduce your taxes.

[quote=babbling looney]

Actually, Mike, there is no "phase out" on deductions on 1099 income when you are directly matching business expenses against that income.  At least not as I understand it.  I'll know more in a few weeks when I get my taxes wrapped up.

You are correct Joe.   Expenses and deductions are generally a direct write off in the tax year they are incurred, with the exception of items that are amortized.  For instance if you own your building, as my husband does for his business, we take the deduction over many years.  Large equipment, such as backhoes and tractors, are depreciated over a few years for the initial capital investment, and interest expense can also be a deduction. Of course there is recaputure if the asset is sold.

This is one of the best parts of being independent. You can really take advantage of good tax planning to reduce your taxes.

[/quote]

Just like I said...they're taken above the line. Mike's a little new at this stuff. Give him a break.

[quote=Dirk Diggler][quote=babbling looney]

Actually, Mike, there is no "phase out" on deductions on 1099 income when you are directly matching business expenses against that income.  At least not as I understand it.  I'll know more in a few weeks when I get my taxes wrapped up.

You are correct Joe.   Expenses and deductions are generally a direct write off in the tax year they are incurred, with the exception of items that are amortized.  For instance if you own your building, as my husband does for his business, we take the deduction over many years.  Large equipment, such as backhoes and tractors, are depreciated over a few years for the initial capital investment, and interest expense can also be a deduction. Of course there is recaputure if the asset is sold.

This is one of the best parts of being independent. You can really take advantage of good tax planning to reduce your taxes.

[/quote]

Just like I said...they're taken above the line. Mike's a little new at this stuff. Give him a break.

[/quote]

Says the guy who made up the "short term cap gains" line and didn't know the top income tax rate 

[quote=babbling looney]

Actually, Mike, there is no "phase out" on deductions on 1099 income when you are directly matching business expenses against that income.  At least not as I understand it.  I'll know more in a few weeks when I get my taxes wrapped up.

You are correct Joe.   Expenses and deductions are generally a direct write off in the tax year they are incurred, with the exception of items that are amortized.  For instance if you own your building, as my husband does for his business, we take the deduction over many years.  Large equipment, such as backhoes and tractors, are depreciated over a few years for the initial capital investment, and interest expense can also be a deduction. Of course there is recaputure if the asset is sold.

This is one of the best parts of being independent. You can really take advantage of good tax planning to reduce your taxes.

Dirk,

A wholesaler stopped by my office today touting a crappy fixed annuity (AIG and Ohio National blow it's doors off) and guess what else...yeah that's right...an EQUITY INDEXED ANNUITY!!! 

This one wasn't too bad.  No cap, 100% market participation in the S&P...you can lock in your gain 1 time, and get 2% thereafter until the surrender is up in 7 years.  Decent product, but not good enough.

Why not sell the the Nationwide All American Gold VA product with the lum sum guaranteed return of principle after 7 years?  Same principle guarantee, PLUS you can invest in a DIVERSIFIED portfolio (aka small cap, mid cap, int'l, etc)...which will probably yield more than the S&P over that stretch...

EIA are just sh**ty VA's in drag.

But then again, is I was just a CPA with an insurance license, I guess I'd like EIA's too...

Was the 7 just too hard for you???

If a client is conservative I would just subscribe to the KISS theory.

A 40/60 asset allocation would most likely beat an EIA return in most every five year scenario.

EIA's are too expensive and too illiquid.

Just my .02

scrim

BankFC said:

EIA are just sh**ty VA's in drag.

Reply:

Couldn't have said it better myself

[quote=babbling looney]

Actually, Mike, there is no "phase out" on deductions on 1099 income when you are directly matching business expenses against that income.  At least not as I understand it.  I'll know more in a few weeks when I get my taxes wrapped up.

You are correct Joe.   Expenses and deductions are generally a direct write off in the tax year they are incurred, with the exception of items that are amortized.  For instance if you own your building, as my husband does for his business, we take the deduction over many years.  Large equipment, such as backhoes and tractors, are depreciated over a few years for the initial capital investment, and interest expense can also be a deduction. Of course there is recaputure if the asset is sold.

This is one of the best parts of being independent. You can really take advantage of good tax planning to reduce your taxes.

[/quote]

I'm just so glad I said "no" to the backhoe salesman, because I don't want to mess around with depreciation schedules....

[quote=Dirk Diggler]

Joe, I love you like a brother, but when a bunch of people who think they know what they're talking about start proving that they don't, I'm gonna spank them a little.

It's all just a bunch of words on the computer screen. None of us should take this stuff too seriously. I'm sorry if I've hurt anyone's feelings. Mine haven't been hurt in the least. Sociopathy sure has it's rewards!

[/quote]

Appreciate your frankness, man, and didn't intend to single you out.  That post was merely a good example.

All I'm suggesting-and I think everyone gets it, is that we can bring the volume down a notch and still have a spirited debate and a little fun too.

[quote=joedabrkr][quote=babbling looney]

Actually, Mike, there is no "phase out" on deductions on 1099 income when you are directly matching business expenses against that income.  At least not as I understand it.  I'll know more in a few weeks when I get my taxes wrapped up.

You are correct Joe.   Expenses and deductions are generally a direct write off in the tax year they are incurred, with the exception of items that are amortized.  For instance if you own your building, as my husband does for his business, we take the deduction over many years.  Large equipment, such as backhoes and tractors, are depreciated over a few years for the initial capital investment, and interest expense can also be a deduction. Of course there is recaputure if the asset is sold.

This is one of the best parts of being independent. You can really take advantage of good tax planning to reduce your taxes.

[/quote]

I'm just so glad I said "no" to the backhoe salesman, because I don't want to mess around with depreciation schedules....

[/quote]

LOL.... Well I don't actually use the backhoe in "my" business...but I can talk about it to my clients, who also own John Deere green.  Can ya tell I'm in farm country?  My office doesn't have anything expensive enough to require depreciation.

Why not sell the the Nationwide All American Gold VA product with the lum sum guaranteed return of principle after 7 years?  Same principle guarantee, PLUS you can invest in a DIVERSIFIED portfolio (aka small cap, mid cap, int'l, etc)...which will probably yield more than the S&P over that stretch...

EIA are just sh**ty VA's in drag.

As I recall, EIAs came out in the early to mid 1990's as a way for insurance agents to be able to compete with securities licensed advisors who were able to sell fixed and variable products. Since the market was in an upward trend at that time the cap or percentage of participation in the indexes wasn't such a big deal.  Heck,  70% participation in a positive 25% market was heaven for the fixed income investor.  The insurance agent couldn't help but be a hero. 

Those same EIAs didn't perfrom so well when we had back to back to back negative index performances.  A well managed VA or equity and bond portfolio was able to still have positive returns even if the indexes were tanking.  I know that is true, because I did it. My clients lost nothing in the years from 1999 to now and have they some nice gains.  EIAs during a fairly flat market like we have had in this past year are just not going to perform up to the level of even a certificate of deposit or a good short term bond.  I know Dirk is making money hand over fist.....but I'm willing to bet his EIA clients are not.

[quote=scrim67]

If a client is conservative I would just subscribe to the KISS theory.

A 40/60 asset allocation would most likely beat an EIA return in most every five year scenario.

EIA's are too expensive and too illiquid.

Just my .02

scrim

[/quote]

Really? How much do they cost?

[quote=babbling looney]

Why not sell the the Nationwide All American Gold VA product with the lum sum guaranteed return of principle after 7 years?  Same principle guarantee, PLUS you can invest in a DIVERSIFIED portfolio (aka small cap, mid cap, int'l, etc)...which will probably yield more than the S&P over that stretch...

EIA are just sh**ty VA's in drag.

As I recall, EIAs came out in the early to mid 1990's as a way for insurance agents to be able to compete with securities licensed advisors who were able to sell fixed and variable products. Since the market was in an upward trend at that time the cap or percentage of participation in the indexes wasn't such a big deal.  Heck,  70% participation in a positive 25% market was heaven for the fixed income investor.  The insurance agent couldn't help but be a hero. 

Those same EIAs didn't perfrom so well when we had back to back to back negative index performances.  A well managed VA or equity and bond portfolio was able to still have positive returns even if the indexes were tanking.  I know that is true, because I did it. My clients lost nothing in the years from 1999 to now and have they some nice gains.  EIAs during a fairly flat market like we have had in this past year are just not going to perform up to the level of even a certificate of deposit or a good short term bond.  I know Dirk is making money hand over fist.....but I'm willing to bet his EIA clients are not.

[/quote]

I love all the attention I'm getting. You guys have taken the bait. I am in control of everyone! I am the master of this domain.