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Social faux pau...sorry but the topic is still relevant today. I am new to the forums and am reading threads that pertain to my niche
Annuities Objection
- Thread starter jmhopkins40
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- 1,641
Don't sweat it. He's a crotchety old man.
- 924
With all my big talk early in this thread about how much I hate Aviva, I just delivered a $900k Annexus policy yesterday. I had to because the death benefit rider was top priority.
Have you seen NACOLAH's GMDB Rider? Pretty good.
- 227
The NACOLAH GMDB is pretty good as long as you only take RMD's and not income. Fidelity and Guaranty's Prosperity Elite series and a similar roll up but the 7.25% compound income roll up can be taken as a 5 or 10 yr. payout to beneficiaries. Aviva's LSA product also has an 8% simple roll up that is available to beneficiaries over a 5 yr. period.
Aviva's 8% is now down to 7.2%, but the 5 year beneficiary draw down is still in effect- not a bad instrument, considering you lock in for 20 year guarantee, plus can re-lock in at a later date, if this number goes up. I also like the LTC rider that allows double lifetime income benefits.
I was't in the game back when Aviva pulled out, so can't speak from that bad experience. There's a great book on the market that I feel is a must read for anyone selling annuities or is a RFA- which I am- "Don't Die Broke" by David J Reindel. Speaks volumes about protecting assets and building a comfortable, safe retirement with income for life. Although I can sell securities, as my business is based on working with new retirees, or those soon to retire, I refuse to condone continued speculation, converting my clients to investments. If any of my clients want to continue speculating with part of their money, and if it makes sense, I steer them to a conservative money manager group that specializes in ETF's with options overlays. Gives them the feeling of mutual funds, without the exhorbitant fees associated with this securities investment. Plus there's the benefit of selling early in the day if there's another 800-1000 point drop in the DOW, something that a Muni can't do til close of the day.
In the coming years, the battle lines are being drawn over baby boomers 401K's and the securities people are resorting to some serious scare tactics relating to annuities, but neglecting to talk about the misfortunes associated with their stay in the market, its a long term game strategy that have cost Billions to this same boomer group in the early 2000, 2008 and just recently.
Its imcumbant for anyone selling annuties to know the various products, each one's functions and how they relate to each of their client's needs. With the growth of new products such as fixed indexed annuities that have handsome returns, deferred benefits, income for life, LTC riders, etc. there's solid evidence that the insurance industry is finally listening to its critics and providing some very attractive options for the retirees. Put the clent's need first and its a great time to be involved in the annuity sector.
"Always do the right thing for your client, even if it costs you money. You sleep well at night, never have to worry about your E&O getting dinged and the referrals will easily surpass any lost business. Its never right to do wrong and its never wrong to do right"
I was't in the game back when Aviva pulled out, so can't speak from that bad experience. There's a great book on the market that I feel is a must read for anyone selling annuities or is a RFA- which I am- "Don't Die Broke" by David J Reindel. Speaks volumes about protecting assets and building a comfortable, safe retirement with income for life. Although I can sell securities, as my business is based on working with new retirees, or those soon to retire, I refuse to condone continued speculation, converting my clients to investments. If any of my clients want to continue speculating with part of their money, and if it makes sense, I steer them to a conservative money manager group that specializes in ETF's with options overlays. Gives them the feeling of mutual funds, without the exhorbitant fees associated with this securities investment. Plus there's the benefit of selling early in the day if there's another 800-1000 point drop in the DOW, something that a Muni can't do til close of the day.
In the coming years, the battle lines are being drawn over baby boomers 401K's and the securities people are resorting to some serious scare tactics relating to annuities, but neglecting to talk about the misfortunes associated with their stay in the market, its a long term game strategy that have cost Billions to this same boomer group in the early 2000, 2008 and just recently.
Its imcumbant for anyone selling annuties to know the various products, each one's functions and how they relate to each of their client's needs. With the growth of new products such as fixed indexed annuities that have handsome returns, deferred benefits, income for life, LTC riders, etc. there's solid evidence that the insurance industry is finally listening to its critics and providing some very attractive options for the retirees. Put the clent's need first and its a great time to be involved in the annuity sector.
"Always do the right thing for your client, even if it costs you money. You sleep well at night, never have to worry about your E&O getting dinged and the referrals will easily surpass any lost business. Its never right to do wrong and its never wrong to do right"
- 1,641
With economies contracting, the worry shouldn't be inflation. It should be how to keep your assets from contracting. So many have fled to safety that t-bonds are are selling above face value. Which means when inflation does arrive, you will be stuck with holding your bonds to maturity at a very low rate, or taking a loss when you sell them. (Remember bond price is inverse to its yield.)
Now is the perfect time to offset some risk and buy a fixed indexed annuity. Only the FIA sets you up to participate in gains when the economy turns around. It gives you the protection of treasuries while hedging future inflation risk.
Now is the perfect time to offset some risk and buy a fixed indexed annuity. Only the FIA sets you up to participate in gains when the economy turns around. It gives you the protection of treasuries while hedging future inflation risk.
- 227
The entry of some very well respected and traditionally VA or Life carriers like Genworth, Pac Life, and The Hartford into the indexed annuity market will make "annuity bashing" just a little more difficult for those "securities people." When sold to the right client for the right purposes, the FIA is a very powerful tool for capital preservation, wealth transfer, and/or guaranteed income. As more of these large well known VA and/or Life carriers enter the FIA world, it will only help to legitimize the product in the eyes of the consumer.
I don't know that FIAs will provide the "protection of treasuries," and they won't necessarily be a good inflation hedge either. Equity price and inflation are not always correlated (think 1970's).
FIAs are not a suitable replacement for the equity portion of someone's portfolio (i.e. the piece with a 10+ year time horizon).
FIAs are a completely viable "safe money" alternative to bonds and other cash/fixed income pieces.
I've been pondering which product (variable or fixed indexed) has the stronger income riders (obviously, this will only be known for sure in hindsight).
