Anyone with Midland that Understands MVA

[whall]

I have prospects wanting to move money from their high surrender charge annuities into a turn-key real estate account with one of my providers. I believe in annuities, but not when the client has 100% of their retirement funds all in one contract. These providers will pay the surrender charge, but I think the MVA has reduced the surrender charges. Any advice?

whall

 

[SWM]

If you have to look for money in an annuity contract that has high surrender and there are no liquid assets, then you best not be putting them in a "turn key real estate" deal. That does not pass the smell test in any circumstance. Is that a registered product?

 

[whall]

If you have to look for money in an annuity contract that has high surrender and there are no liquid assets, then you best not be putting them in a "turn key real estate" deal. That does not pass the smell test in any circumstance. Is that a registered product?

The agent that put 100% of her money in this annuity didn't pass the smell test. No it's not a register product. It's turn-key investment property and the provider of this investment has been in business and returning 10 to 20% returns for over 15 years. Annuities have a place, but some agents go too far. Diversity is key in wealth management.


whall

 

[SWM]

What is the liquidity feature of the real estate option you are representing? Throw the name out there if you do not mind.

To answer you question about MVA, it changes daily. Yes it can offset the surrender and can also add to surrender.

 

[scagnt83]

The agent that put 100% of her money in this annuity didn't pass the smell test. No it's not a register product. It's turn-key investment property and the provider of this investment has been in business and returning 10 to 20% returns for over 15 years. Annuities have a place, but some agents go too far. Diversity is key in wealth management.


whall

Out of curiosity. In what capacity are you recommending this to her?

 

[whall]

I'm new to this forum and not sure if I can provide a name at this point. I will put up a link to their site when and if I am able. I'm going to read the rules later today. The liquidity depends on the property and can range anywhere from 30 days to 5 or more years. The best feature is that is pays monthly if elected.

whall

 

[Norwayguy]

I'm new to this forum and not sure if I can provide a name at this point. I will put up a link to their site when and if I am able. I'm going to read the rules later today. The liquidity depends on the property and can range anywhere from 30 days to 5 or more years. The best feature is that is pays monthly if elected.

whall

The existing annuity can pay monthly if elected. Additionally you should have a 10% free withdrawal feature on the annuity which make the MVA a moot point.

 

[whall]

Out of curiosity. In what capacity are you recommending this to her?

I am not recommending anything, but if the MVA will allow for surrender, then I will be working with her CPA, because he is the one that recommended that she consult with me. I own a marketing company. I sold my annuity business, but still have a large network of CPA's that refer business for my turn-key investment providers. I also consult with annuity agents because of my past TOT status that I held for years. I still get a lot of calls. I do not charge. I simply just enjoy the business.

I'm fully aware of securities law and compliance issues. I had my own Reg D. Offering.

I hope this helps

whall

 

[sman]

I am not recommending anything, but if the MVA will allow for surrender, then I will be working with her CPA, because he is the one that recommended that she consult with me. I own a marketing company. I sold my annuity business, but still have a large network of CPA's that refer business for my turn-key investment providers. I also consult with annuity agents because of my past TOT status that I held for years. I still get a lot of calls. I do not charge. I simply just enjoy the business.

I'm fully aware of securities law and compliance issues. I had my own Reg D. Offering.

I hope this helps

whall

I'm curious, the subject line asks if anyone understand MVA and in the above post you stated you sold your annuity business. How could you been in the annuity business and not understand MVA?

Just in case you don't know, it stands for Market Value Adjustment. And the way it works is if the market interest rates go down from the time the person started the annuity, they receive a positive adjustment if they were to surrender the contract. They would still incur the surrender charge (if there were one), but the MVA might offset some or all of it in the above scenario. If market interest rates go up from the time the annuity was purchased, then there would be a negative adjustment.

 

[whall]

The existing annuity can pay monthly if elected. Additionally you should have a 10% free withdrawal feature on the annuity which make the MVA a moot point.

She is wanting to move 75% out of the annuity and was hoping the the MVA would remove most of her surrender charges. I am being told that right now is great time to use the MVA to exit. I will just have to wait and see after I have her call the company.

Thank you,

Bill
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I'm curious, the subject line asks if anyone understand MVA and in the above post you stated you sold your annuity business. How could you been in the annuity business and not understand MVA?

Just in case you don't know, it stands for Market Value Adjustment. And the way it works is if the market interest rates go down from the time the person started the annuity, they receive a positive adjustment if they were to surrender the contract. They would still incur the surrender charge (if there were one), but the MVA might offset some or all of it in the above scenario. If market interest rates go up from the time the annuity was purchased, then there would be a negative adjustment.

I know the basics. I was hoping that someone could let me know what percentage of the surrender charge is affected by the interest rate as of TODAY or the week, not general information, but thank you just the same.

Bill