BCA from Aviva, Way Better Than the BAA?

[Justin Bilyj]

Just checking in with some producers around here. Ohio FINALLY allows the BAC, and did away with the BAA (which seemed to have high charges).
Annexus BalancedChoice Annuity (BCA) Review | Annuity Think Tank: Blog
I did find this, just wanted to see if anyone here liked this.
Thank you,

 

[jmarkk1]

Not sure if this option is better, but I have always been uncomfortable with this product because of high fees and what seems to be too many moving parts. Maybe it's changed since I looked at it the last time.

 

[Josh Landis]

Just checking in with some producers around here. Ohio FINALLY allows the BAC, and did away with the BAA (which seemed to have high charges).
Annexus BalancedChoice Annuity (BCA) Review | Annuity Think Tank: Blog
I did find this, just wanted to see if anyone here liked this.
Thank you,

This product is great and has just been launched in Ohio. The advisors I work with love this product because of the potential with the uncapped strategy. I have a lot of statements with really great returns from this product. If you have questions about it, feel free to ask and I will do my best to answer them with where it fits and where it doesn't fit. It's actually one of the simplest products available and clients can understand it much better than typical FIA's because of the way it's structured.

Josh

 

[Justin Bilyj]

You don't think its expensive? Is the SGO worth it? How bout the payouts, are they competitive?
Thank you,

 

[Josh Landis]

You don't think its expensive? Is the SGO worth it? How bout the payouts, are they competitive?
Thank you,

I think that the fees that come with the product are very reasonable considering the structure. The fee is 1.5% on the base product (I always think of this as a management fee, this is not far from what you would pay a money manager), but the product has averaged 7.17% per year historically over the last 30 years. This back testing is also done with 4,500 monte carlo scenarios and taken the average so in my opinion there is a lot of integrity in the back testing compared to many products available. It all comes down to whether you think that paying a 1.5% fee is worth the uncapped strategy or if you would rather have a product with a cap (currently somewhere between 3%-6%).

I really like the SGO Max because of the following. It gives you a 3% guarantee and then 175% of the index gains). This is where you can see some very significant gains on the income value. The payout percentages are strong also...one of the downsides is that they do not increase every year, but are banded increasing every 5 years. One of the strategies you can use to maximize income is by taking free withdrawals until you hit the next age band payout % (also a nice benefit is up to 5% free withdrawals in the first year).

One of the benefits I don't think they talk about enough is the LTC doubler, where your GMWB would double if you can't do 2/6 ADL's.

Also, something that I guarantee will be huge for your clients is that Annexus has a patent on tracking values daily...meaning the client can literally login (like they can their 401k) and see the performance every day.

In my opinion someone not in the financial services field will understand this product much more than an annuity product that has a cap or spread or this and that. It's simply a 401k type product that has a portion in equities and a portion in fixed income - from my experience clients typically understand this very easily because that's what they are used to in their 401k's.

I hope this helps. If you have any specific questions feel free to fire back and I'll see if I can answer them.

 

[Josh Landis]

Josh Landis: Bro you be pimpin da Annexus Annuity?

Health Guy, I do like the Annexus BCA and think it's a very good product...certainly not the only one out there, but it's very strong...and as you're name suggests, you may also be interested in knowing that I will soon be heading to my local crossfit for a wod.