Advice ??

[Bruklynstu]

Have a client in a TSA/403b with midland. One is 5 years into a 14 year surrender and the other is 7 years in. Can you roll them into another company that is TSA qualified or will they loose there money? Do they have to wait till the surrender charges are over ??

Thanks !

 

[cloisbarton]

I guess the first question that I would ask is what is the purpose of rolling out of the Midland product? Have you another avenue that offers the client better interest or benefits? Depending on the surrender charge there could possibly be a loss in money, although there are some bonus annuities that can soften the loss. However, what you must consider is the reason for moving the clients money out. If you can not bring the client whole and offer an improvement in interest and benefits, then it might be better to wait until the surrender is up. It is always a case by case basis with any kind of transfers or exchanges.

 

[HarryRenard]

Check if the old accounts have "mva" , if so the 7 yr old would probably be even( so no surrender charges), and even the 5 yr old too for that matter.

As mentioned above it is more important then ever to make sure the changes are suitable for your client not just for you.

Midland seems to have a pretty good interest credit rates over the years and the older ones are gonna have higher min interest rates guarantees. Even with a bonus sometimes its still not better for the client.

 

[Bruklynstu]

My client wants to get away from the old agent in a bad way. So far I have told them they will most likely have to stay where they are. I had them switch to the fixed portion of the policy so they have started to earn a little bit of money.
Just trying to see if there is a way to make them equal or better.

 

[HarryRenard]

Is there MVA on those accounts?

Do you sell Midland?
- - - - - - - - - - - - - - - - - -
One good way to keep track of customers and to stay in the loop is to have them sign a AOR (agent of record) letter making you the agent who recieves copies of their statements.
You must be appionted with the company though, so if you are appointed with Midland that is a good option for you if the numbers just dont add up today.

"Wanting to get away from an agent" might not satisfy a suitability form, always remember this real money we are playing with.

You could always tell them not to answer the phone if he calls, Midland really is a fine company.

 

[Bruklynstu]

Help me out....whats MVA ?

 

[0b1kanobee]

I agree completely, not a good excuse to move money. What you could do is stop contributions or their 'flow' into that product and put them into another product providing it's a better product.

As far as charges to the other account, make sure you ask about not only surrender charges but any and all charges for rolling out money. I have seen other chargers besides surrender charges. I'm not familiar with Midland Products.

 

[arnguy]

MVA=Market Value Adjusted

 

[souldeux]

Help me out....whats MVA ?

Short, explanatory link.

 

[pcwest]

The only way you could move the money out is if the MVA will offset some of the charges and place the client into a product with a bonus.

The client might be pissed at the agent, but it is not worth loosing their money over it.