2010 Interest Crediting Rates Came In

[0b1kanobee]

Just thought I would share the average interest crediting rates for 2010 for one company on the Indexed Annuities for those interested.

I can't say who the company is or the 'exact' numbers because they are not for the public but I'll make them real close.

The average crediting rate for Indexed Annuity policies for 2010 was 7.02% with the highest rate credited being 29%.

Pretty good considering there is no risk of loss.


So to clarify, this is average. Did anybody earn less than 7.02% ? YES

Did anyone earn more than 7.02% ? Yes

In fact, some earned as much as 29% Was the 29% on the year to rear strategy? Didn't say but was probably not. I don't see how it was possible to do that with their caps on year to year. Most likely it was in the 'daily average'. Did anyone earn 29% for the whole year? I doubt that too but it did say YEAR on the e-mail so I will have to get that clarified.

This did not take into consideration money in 'fixed' buckets.

All in all I think the numbers are extremely good and I'm much more confident in the product. Just wish I would have got the 29% but I'll take what I got.

 

[scagnt83]

The 29% had to be on a daily crediting method.

I am a fan of the monthly cap, but not the average

 

[Crabcake Johnny]

Averages are totally meaningless. Allow me to illustrate why they mean nothing:

3%
3%
3%
3%
3%
30%

The average is 7.5% when in fact only 1 out of 6 policy holders made 30%. This can lead to a very misleading presentation; "Joe, the average annuity earned 7.5% last year." Does that matter to Joe if his return is 3%?

Say you have 4 sales reps on your office. 3 are making 10K a year living in poverty and 1 is making 200K. Would you really advertise the job at "Our average agent makes $60K" ?

 

[JFBAgent]

If it were 3,3,3,3,3, and 30%, there would be only 1 indexed annuity company controlling 95% of the market.

The statements for mine in 2010 said the one with NASDAQ monthly cap was 8% and my S&P500 monthly cap was over 15%.

I am quite pleased.

 

[0b1kanobee]

There is more than one way to skin a cat, that is for sure but I have to disagree with you John.

I wouldn't sell it like that. I would sell it just like I spelled it out. Notice I said some earned less and some earned more. This is the average.

In fact you could not even mention the average if you wanted. You could just tell someone that last year people who put $$$ with so an so earned as much as 29%.

I think I have explained it fairly.

I'm more than happy with the figures.

 

[bluemarlin08]

Why can't you name the company? Many of us that are skeptical might find this information very useful.

 

[0b1kanobee]

Why can't you name the company? Many of us that are skeptical might find this information very useful.

Because the e-mail said it was for "agent use only". This forum is seen by people in the public who are not agents. The numbers are not even exact but real darn close, within .02 points.

A or AA rated company. Don't hear too much about them around hear though. Don't know why you are skeptical. Why would I make this up? I'm sure I'm not the only one to get this email.

If someone else wants to post it, they can. I tend to follow the rules as asked.

 

[bluemarlin08]

You misunderstood my statement. I was saying those of us that are skeptical about EIA, I wasn't skeptical of you. Sorry if you interpretted it wrong. So many moving parts in the product and misleading marketing by some companies and agents makes me leary. PM me if you would, but if not perhaps someone else can share the info.

 

[JFBAgent]

I'll post because the interest I mentioned are my own personal annuities. I'll share my returns.

North American Charter product.

 

[TRSecurity]

I've had a couple of clients make over 20% in the past 12 months on the monthly Pt to Pt. The monthly caps are around 2.8% on that those. Definitely excellent timing to say the least.

But, the bottom line is that EIA's can give decent upside with some luck.