Annuities that Are Most Liquid

[Cash]

I use both. Apples and oranges. What an incredibly stupid waste of time is this age old argument. Go away

His mind can't comprehend that two seemingly opposed things are not necessarily opposed and can be complimentary. He also has a blind faith in things like fiduciary standards, which he doesn't understand, and celebrities. What this tells me is that Drifting suffers from a condition I won't name out of respect for others.

 

[Drifting]

BUT THEY ARE VOLATILE!!!

Not everyone in the world has the same risk tolerances that you seem to have.

Implying that they do... is a gross error in judgment.

LOL! You live in an alternate universe. A bond / stock portfolio speaks for itself. And again you are beating a dead horse because an annuity is a LONG-TERM financial product. Not short-term. Due to taxes, getting out will take even longer if you even have that option. Again you are the red herring king. Not everyone in the world has the same tolerance for inferior, over taxed financial products.

He also has a blind faith in things like fiduciary standards

That's beyond comical that you would defend the lowly "suitability standard". Let me guess... You are a non-fiduciary? I already figured that out.
The fiduciary standard is the highest standard. A fiduciary legally works for their client. A non-fiduciary legally works for himself or his employer / brokerage, and it legally allowed to push expensive products on his clients. Again very telling that you trash the fiduciary standard.

 

[DHK]

I live in a "universe" with professional licenses and clients to serve.

You don't.

Either get licensed... or get out.

Until then, your excessive commentary is a waste of bandwidth on this forum.

Oh, and guess what? I'm a ChFC. I'm already holding myself out to the public at a higher standard... that is legally enforceable. So yeah, I AM a fiduciary. However, fiduciaries are still only liable to give the best advice with what they want to sell... and I sell insurance-based solutions. They either fit or not.

I'm not for everyone.

Unlike your ranting... which you're trying to impose on everyone on this forum to "turn us from our evil commission-heavy ways".

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Yep... the ignore function will do me well for Drifter. I'm not here to educate her.

 

[Drifting]

I live in a "universe" with professional licenses and clients to serve.

You don't.

Either get licensed... or get out.

Until then, your excessive commentary is a waste of bandwidth on this forum.

Oh, and guess what? I'm a ChFC. I'm already holding myself out to the public at a higher standard... that is legally enforceable. So yeah, I AM a fiduciary. However, fiduciaries are still only liable to give the best advice with what they want to sell... and I sell insurance-based solutions. They either fit or not.

I'm not for everyone.

Unlike your ranting... which you're trying to impose on everyone on this forum to "turn us from our evil commission-heavy ways".

There you go with another one of your empty qualitative responses. I'll let my quantitative response speak for itself. Historical data does not lie. It's not opinion. It doesn't require a CFP. By the way just because you are a CFP says nothing about whether you are a fiduciary or not. It's an attempt by you to summarily claim "I'm right and you're wrong". Either post something to refute the SUPERIORITY of a bond heavy portfolio of bond and stock index funds or get out.

fiduciaries are still only liable to give the best advice with what they want to sell

You are trying to confuse fee-based with fee-only fiduciaries. I agree that investors should avoid fee-based. Fee-only are the only advisers who can be trusted. No conflict of interest because they are not allowed to earn commissions.

 

[Cash]

LOL! You live in an alternate universe. A bond / stock portfolio speaks for itself. And again you are beating a dead horse because an annuity is a LONG-TERM financial product. Not short-term. Due to taxes, getting out will take even longer if you even have that option. Again you are the red herring king. Not everyone in the world has the same tolerance for inferior, over taxed financial products.

That's beyond comical that you would defend the lowly "suitability standard". Let me guess... You are a non-fiduciary? I already figured that out.
The fiduciary standard is the highest standard. A fiduciary legally works for their client. A non-fiduciary legally works for himself or his employer / brokerage, and it legally allowed to push expensive products on his clients. Again very telling that you trash the fiduciary standard.

Thank you for making my predictions about you look really good.

Where did I "defend" the suitability standard?

And wrong about the fiduciary standard thing. I have a S65 and am a part owner of an RIA. So good job there Sherlock.

Because I am a fiduciary and am a part of that world I understand what that actually means and what it doesn't mean.

I know that you think you possess some knowledge the rest of us don't but you would be wrong about that. Once again, you can't comprehend that seemingly opposed ideas are actually not.

 

[MW Agent]

I have found the fee only camp of advisors to be limited in their knowledge. I'm sure there are exceptions, just my experience. Most have limited knowledge on insurance products in general.

I would also say paying for asset allocation advice from a fee only advisor is almost worthless. The investor behavior will almost guarantee most will never follow through with it in a severe down market and lose much more than the 1% fee they are trying to save.

 

[Golfnut2112]

To recommend an annuity to this guy for THE FULL $500,000 may not be appropriate unless he does a withdrwal of interest each year. He states he may need to buy new equipment in the future, if he made 3% or say $15,000 a year in interest for 6 years and needs to buy something he will need to report $90,000 that year. I would not want to explain to him or his accountant my reasoning for why I chose an annuity.

 

[VolAgent]

Thank you for making my predictions about you look really good.

Where did I "defend" the suitability standard?

And wrong about the fiduciary standard thing. I have a S65 and am a part owner of an RIA. So good job there Sherlock.

Because I am a fiduciary and am a part of that world I understand what that actually means and what it doesn't mean.

I know that you think you possess some knowledge the rest of us don't but you would be wrong about that. Once again, you can't comprehend that seemingly opposed ideas are actually not.

Drifting is just that, drifting about without a clue. I'm surprised you guys continue to debate him.

He also hasn't addressed why one of his hero's Ric Edelman is pitching variable annuities for kids. I thought this guy had only sold 10 out of 16,000 clients? Maybe the program is just brand new and doesn't have any traction yet?

 

[Cash]

Drifting is just that, drifting about without a clue. I'm surprised you guys continue to debate him.

He also hasn't addressed why one of his hero's Ric Edelman is pitching variable annuities for kids. I thought this guy had only sold 10 out of 16,000 clients? Maybe the program is just brand new and doesn't have any traction yet?

I had to look up who Ric Edelman is. Selling VAs to kids is a great idea. Just think of all those fees for the next 60 years.

How Drift can stand to listen to Clark Howard's voice is beyond me. The guy sounds and looks like a rat. The fact that he got a tv show shows that dreams really do come true. For that reason I have never listened to him for more than a few minutes. I heard him once go on for a few minutes with moral panick in his voice about how insurance agents are not fiduciaries. That's about all I know about him.

But I guess Drift is gone now. Probably a good thing before this place turns into the FE forum lol.

 

[rhinopackage]

I have a client that's a farmer. (67 years old) His wife has FA that is now paying income. (Nothing really great)
Anyways...He never went with annuity because he fears money would be inaccessible if equipment breaks etc. All of his money is in bank. (Around $500k)
Have any of you ever been able to help someone that needs liquidity plus better growth than just sitting in bank?
What approach do I use to open discussion? What products?
He's in Ohio.

There are lots of questions here to be answered:

1. Does he own the farm and what mortgage is there
2. Is he selling the farm out right when he is done or is it staying in the family
3. What is his plan if he sells to deal with tax issues
4. Has he considered a sale and holding paper - that gives him cash upfront and a recurring income backed by the farm
5. What does he expect his income need to be farming and post farming

A mix of 2 or 3 products that are purchased in $10k - $25k increments gives him lots of flexibility if he does need a chunk of cash - free outs from all the policies or surrender one. He could mix 3 companies, and mix return of premium product (lower growth potential) with strong income guarantee products