Yes, but are you master of YOUR domain?

[quote=Dirk Diggler][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.

[/quote]

Are you going to hypnotize us next?  Please be careful so you don't bruise my inner child. 

EIA's expenses are convoluted to say the least.

My best guesstimate would be somewhere around 1.5% annually.

My firm prohibits the sales of EIA's for compliance reasons hence my knowledge is self-admittedly limited.

scrim

[quote=scrim67]

EIA's expenses are convoluted to say the least.

My best guesstimate would be somewhere around 1.5% annually.

My firm prohibits the sales of EIA's for compliance reasons hence my knowledge is self-admittedly limited.

scrim

[/quote]

Not sure that you can even quote a 'cost' because they pay a return based on a formula tied to an index, with various caps and other conditions too.  I don't really use them.  They look intriuging to me, but too many moving parts IMHO.

Exactly why I said they are convoluted.    

Similar to when a client thinks a certificate of deposit is "free".  

I'm sure there are lots of other examples consumers view as "free" when in reality they are quite expensive.

scrim

Dirk here’s a question for you.  You suggested a munizero has imputed taxable interest.  Tell me how?

[quote=scrim67]

EIA's expenses are convoluted to say the least.

My best guesstimate would be somewhere around 1.5% annually.

My firm prohibits the sales of EIA's for compliance reasons hence my knowledge is self-admittedly limited.

scrim

[/quote]

I respect you honesty.

[quote=youcanhatemenow]Dirk here's a question for you.  You suggested a munizero has imputed taxable interest.  Tell me how?[/quote]

I didn't suggest that.

[quote=joedabrkr][quote=Dirk Diggler][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.

[/quote]

Are you going to hypnotize us next?  Please be careful so you don't bruise my inner child. 

[/quote]

It won't be necessary. You guys are already so obsessed with me that it's taken on a life of it's own.

Dirk,

I really wanted an answer to my original post...why would you sell an EIA (S & P only) over a VA (diverse investment choices) with a lum sum guarantee with the same surrender schedule?

I think the answer is pretty obvious. 

You make more money by far selling EIAs than using a VA.  As a self professed "annuity specialist" I also suspect he can't sell a VA since you need to have at least a series 6 securities license. 

BL,

Dirk also has claimed to sell VA's as well as traditional securities products, He's series 7 licensed. 

Dirk:

You're a funny guy.  I like your sense of humor although I don't know that it's appreciated by most.  Although I will say that it's difficult to have an objective debate with you.  I think most people want (key word here) to come here to discuss issues in an objective meaningful manner, not to get distracted by petty pissing matches (not to imply that that's your goal here). 

I'm not sure why you are here, most of the posts I have read from you are either bragging about how much you're getting paid, dropping sh*t on other brokers who work at banks and essentially behaving in an ego-centric, narrow minded fashion.  I'm sure you could care less about what anyone elses perceptions of you are (probably a healthy attitude to have to some degree). 

I guess the litmus test for whether you are ethical and in line with client expectations is:

Would you allow your clients to read all of your posts on this board?

Then allow them to read Babbling Looney's, MikeButler's, Indyone's, BankFC's and Mine.

How well do you think you would compete then?  The great OZ was all powerful until the curtain came down. After the curtain came down he was just a circus side show act trying to fast talk his way out of a jam and then bailed out of town.

I have a new nickname for Dirk:  Mr. 10%

[quote=BankFC]

Dirk,

I really wanted an answer to my original post...why would you sell an EIA (S & P only) over a VA (diverse investment choices) with a lum sum guarantee with the same surrender schedule?

[/quote]

I do WAY more VA business than EIA's. My VA's have HANDILY done much better than the S&P, on a consistent basis.

[quote=dude]

BL,

Dirk also has claimed to sell VA's as well as traditional securities products, He's series 7 licensed. 

Dirk:

You're a funny guy.  I like your sense of humor although I don't know that it's appreciated by most.  Although I will say that it's difficult to have an objective debate with you.  I think most people want (key word here) to come here to discuss issues in an objective meaningful manner, not to get distracted by petty pissing matches (not to imply that that's your goal here). 

I'm not sure why you are here, most of the posts I have read from you are either bragging about how much you're getting paid, dropping sh*t on other brokers who work at banks and essentially behaving in an ego-centric, narrow minded fashion.  I'm sure you could care less about what anyone elses perceptions of you are (probably a healthy attitude to have to some degree). 

I guess the litmus test for whether you are ethical and in line with client expectations is:

Would you allow your clients to read all of your posts on this board?

Then allow them to read Babbling Looney's, MikeButler's, Indyone's, BankFC's and Mine.

How well do you think you would compete then?  The great OZ was all powerful until the curtain came down. After the curtain came down he was just a circus side show act trying to fast talk his way out of a jam and then bailed out of town.

I have a new nickname for Dirk:  Mr. 10%

[/quote]

Thanks for the attention.

Your welcome.

So if there are VA's out there with the same principle protection and better investment options, why would you EVER do an EIA...

10%  

[quote=BankFC]

So if there are VA's out there with the same principle protection and better investment options, why would you EVER do an EIA...

10%  

[/quote]

Oil and Gas projects make people more money than Mutual Funds. Why would you ever do a mutual fund? Afterall, you can lose money in either one, anyway.

Poor comparision.

If you can invest in two seperate contracts...each with guaranteed return of principle after x number of years....one with a single investment option (EIA), and one with many (VA)....which do you choose?

Me:  The VA, because of better performance potential

You:  The EIA, because of the higher payout to you

You make my job easier.

"Me:  The VA, because of better performance potential

You:  The EIA, because of the higher payout to you"

And the scud missile may have just landed a direct hit.....

I get higher payouts over the same contract period with the VA that I use than than an EIA. 

I think that your Scud is a dud.