Allianz Core income 7

[Allen Trent]

Have a client that owns a 5 year old Allianz Core income 7 contract. His agent is no longer in the business. Because of the clients upcoming income needs in 3-5 years, I have suggested he keep this contract to utilize the 8% or so guaranteed lifetime withdrawals for he & his wife. It has only made 3,000 in the last 5 years because of the $7-8,000 in income rider fees & because he has allocated so much in the fixed account

However, the client is unhappy that there is only 1 day per year that the index segments are calculated, his happens to be in December each year.

Do you know if there is anyway to Dollar Cost average at the anniversary to get 12 index segments like you can with many IULs?

Contract details were somewhat silent on the topic and gave the impression the index calculation is done at anniversary only.

Thank you

 

[Tahoe Ray]

Have a client that owns a 5 year old Allianz Core income 7 contract. His agent is no longer in the business. Because of the clients upcoming income needs in 3-5 years, I have suggested he keep this contract to utilize the 8% or so guaranteed lifetime withdrawals for he & his wife. It has only made 3,000 in the last 5 years because of the $7-8,000 in income rider fees & because he has allocated so much in the fixed account

However, the client is unhappy that there is only 1 day per year that the index segments are calculated, his happens to be in December each year.

Do you know if there is anyway to Dollar Cost average at the anniversary to get 12 index segments like you can with many IULs?

Contract details were somewhat silent on the topic and gave the impression the index calculation is done at anniversary only.

Thank you

Monthly point to point strategies are normally inferior to annual crediting.

Is the focus income or accumulation?

If the former, who cares? That contract 5 years ago was really solid and products are only going south (really soon).

If you had a pension worth 200k making 25bps monthly but would generate 16k/yr, would you cash out?

Do some math for this guy and let him know that he got in at the top.

 

[Allen Trent]

Monthly point to point strategies are normally inferior to annual crediting.

Is the focus income or accumulation?

If the former, who cares? That contract 5 years ago was really solid and products are only going south (really soon).

If you had a pension worth 200k making 25bps monthly but would generate 16k/yr, would you cash out?

Do some math for this guy and let him know that he got in at the top.

Exactly what I told him. He was crossed eyed because 2 other people have been beggin him to rolll it to new FIA. I told him that would be crazy & almost entirely commission driven advice.

Thanks for the comments on month to month over annual. He just really doesnt like the 1 day per year calculation. Has it in his head that December is a bad market month. I explained that means it has a lower starting amount too.

 

[Tahoe Ray]

Exactly what I told him. He was crossed eyed because 2 other people have been beggin him to rolll it to new FIA. I told him that would be crazy & almost entirely commission driven advice.

Thanks for the comments on month to month over annual. He just really doesnt like the 1 day per year calculation. Has it in his head that December is a bad market month. I explained that means it has a lower starting amount too.

Likely comp driven and it would be hard to find a carrier to accept assuming that the income objective remained constant.

There is a whole "sell in May and go away" concept. I've never heard of December being a downfall month.