3 Year Periods Now?

Was just on a webinar where the latest product will have a 3 year crediting strategy, seriously? Two years for me is not something I trust, let alone 3 years. How did they frame the pitch? They get more money because it's cheaper to offer 3 year crediting strategies (better caps/lower expenses). I had to jump out of the webinar at that point.

Would any of you offer a 3 year crediting strategy? Man zero interest rates have messed up retirement for people...
 
I am not a huge fan of 3 year strategies. But I have 2 year strategies on the books and they are some of the best performing contracts I have in my book. Remember, the longer the lock-in, the fewer amount of times the carrier has to lower caps or increase the spread. I actually like the 2 year strategies. My only issue with the 3 year is that it is a long time for the client to see 0% as their gains. It is more the mental aspect than the math.
 
5 year p2p and even ANICO'S 10 were around a long time before this rate environment.

We'd all probably prefer a 1yr p2p but what are you giving up for it?

It's all about the terms...what are they offering for those 3 years (knowing that they can't change for 3 years)? Is it worth it?

I agree with scagnt83, the hardest part is explaining it to a client.
 
According to Richard Kado who invented the index annuity, 2 year ptp outperforms 1 year ptp 69% of the time over a 2 year period. 92% of the time over a 12 year period.

He also went over the stats for 3 year ptp and they were a little better than the 2 year ptp.
 
Was just on a webinar where the latest product will have a 3 year crediting strategy, seriously? Two years for me is not something I trust, let alone 3 years. How did they frame the pitch? They get more money because it's cheaper to offer 3 year crediting strategies (better caps/lower expenses). I had to jump out of the webinar at that point. Would any of you offer a 3 year crediting strategy? Man zero interest rates have messed up retirement for people...
Clearly a Nationwide webinar. Client does have the optional lock in and 3 year point to point means nothing for the income rider or death benefit rider
 
He also went over the stats for 3 year ptp and they were a little better than the 2 year ptp.

You mustve saw the same webinar I did. How far back did Kado go for the 3 year looking better than 2 year? I dont think agents/marketers go back far enough for back-testing these strategies.

If an fmo tells me how great something woulda done 15 or 20 years ago, makes me skeptical...
 
You mustve saw the same webinar I did. How far back did Kado go for the 3 year looking better than 2 year? I dont think agents/marketers go back far enough for back-testing these strategies.

If an fmo tells me how great something woulda done 15 or 20 years ago, makes me skeptical...

Annexus presents all their webinars the same way honestly.
 
You mustve saw the same webinar I did. How far back did Kado go for the 3 year looking better than 2 year? I dont think agents/marketers go back far enough for back-testing these strategies.

If an fmo tells me how great something woulda done 15 or 20 years ago, makes me skeptical...

I have ran models going back to the 1970s and the 2 year still performed just as good or better than the 1 year options.
 
You mustve saw the same webinar I did. How far back did Kado go for the 3 year looking better than 2 year? I dont think agents/marketers go back far enough for back-testing these strategies.

If an fmo tells me how great something woulda done 15 or 20 years ago, makes me skeptical...

It was in person not a webinar. Kado was actually my favorite part about the Annexus conference.

Full disclosure though, one of the main reasons I like the BCA over newheights is because BCA has 2 year ptp.
 
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