Annuity Help

[jmarkk1]

I've posted a question on here before about ways to get people who are in securities based investments to be open to annuities.
Do you keep on them with regular stream of info? or do you have to wait till they lose money?
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One issue that comes up from these people is that they love dividends. I have client that believes they have enough money invested to live till 90's
Without annuities...how can this be achieved through the market?

 

[Stephen]

I would keep dripping on them, without being securities licensed there is not much that can be done on these folks.

 

[jmarkk1]

Can anyone shine light on how great dividends are? Why they might be worth the market risk?
Also I had one client say that you actually don't lose money when in the market because you don't lose shares...just share value.
I just wish there was an effective way to deprogram what they think is right.
Taxes and tax deferral are big issues, but a lot of these guys think they're not big issues.

 

[Norwayguy]

Can anyone shine light on how great dividends are? Why they might be worth the market risk?
Also I had one client say that you actually don't lose money when in the market because you don't lose shares...just share value.
I just wish there was an effective way to deprogram what they think is right.
Taxes and tax deferral are big issues, but a lot of these guys think they're not big issues.

The person is right when they say it is only a paper loss...It is only a paper loss until they need the money...Your not going to change everyone's mind move on to someone who is concerned with the return of thier money more than the return on thier money.

 

[VolAgent]

Can anyone shine light on how great dividends are? Why they might be worth the market risk?
Also I had one client say that you actually don't lose money when in the market because you don't lose shares...just share value.
I just wish there was an effective way to deprogram what they think is right.
Taxes and tax deferral are big issues, but a lot of these guys think they're not big issues.

You think it is a big issue, it might not be a big issue for them.

If the dividends are large enough, it may be more than enough to pay their expenses. Also, by holding stock, it gets a step up in basis at their death. All they have to do is properly manage their estate tax exposure. Finally, dividends can be qualified and subject only to capital gains taxes versus ordinary income taxes.

 

[hammerken]

If you are attempting to compare an annuity to a dividend paying investment you will probably lose. They are not the same. I would rather focus on what an annuity can do and if you are licensed appropriately I would present them as a valuable tool in a well thought out strategy. If you do not have the proper licensing then accentuate the strength of guarantees, tax deferral (non qualified) and income opportunities.

In the end though there will always be those that you cannot explain the message to for whatever reason. Move on to the next one.

 

[cloisbarton]

Aviva launched an annuity that includes dividends I was reading about last week. Another one of my agents sent it over to me to review.

 

[jmarkk1]

Is annuity a variable?
Let me know info when you get it.

 

[Tahoe Ray]

Is annuity a variable?
Let me know info when you get it.

It is a fixed index annuity. Dividends are included in the crediting strategies but the index where the crediting comes from seems to be based off of a "volatility controlled S&P". It looks uncapped but with large spreads (on the 10 year) and a participation rate...

I've seen some marketing materials but I would be interested to hear from anyone who understands the crediting strategy and the index on which it is based.

Is this smoke and mirrors or worth looking into further?

 

[iliu0410]

i thought annuities come in fixed, fixed index, and variable. it depends on the level of risk the buyer is willing to take on and what sort of growth expectations they are looking to capitalize on.

i know annuities aren't smoke and mirrors. here at **** our fixed index annuities are top - i think only Aviva beat us out but with a product that's risky because it's based on securities (which is a whole 'nother topic of discussion perhaps not the most pertinent to this thread.)

but to get back to jmarkk1's initial question: i'm also curious as to how to get people into annuities, and from a marketing perspective are private labelled annuity products enticing? do they even exist? or are brand names the preferred products you guys like to sell?