Best FIA's for Cash Growth

[LauderdaleBAUS]

I have an Allianz 360 who just did 19.3% for the year, a few others who did 17% for the year, and most did between 12-13%. I use the m2m caps and the S&P 500 with the Nasd 100 50-50. The Allianz preferred platform is really great. If its not Allianz, then Jackson has some good ones and Great American also. I was pretty stoked to see those returns, def getting a lot of referrals off of them!

 

[SanDiego619]

I have an Allianz 360 who just did 19.3% for the year, a few others who did 17% for the year, and most did between 12-13%. I use the m2m caps and the S&P 500 with the Nasd 100 50-50. The Allianz preferred platform is really great. If its not Allianz, then Jackson has some good ones and Great American also. I was pretty stoked to see those returns, def getting a lot of referrals off of them!

Hard to argue against that

 

[scagnt83]

Hey is there also a spread on that National Western product?

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Never mind. I answered my own question. 45bps spread or "asset fee" right? Contractually a little scary though with a guarantee minimum PR of 50% and a max "asset fee of 6%"


Two moving parts......

It is a spread, and it is 35bps. An asset fee would be against the account value.

And I dont see it as any more scary than a possible 12% spread against a bond/large cap index. (dynamic balance)


In theory the DB index is not going to match the S&P 500 in performance, most likely it will keep pace at 50%-75%.
So how is 50%-75% of S&P performance with a 12% spread, any different than a 50% monthly averaged PR with a 6% spread? (assuming worst case scenarios)

Either way both products would most likely revert to their minimum guaranteed values of 1% for the surrender term.


But I actually see the Ultra Value as less scary because it is not something I would usually use as a lifetime income play. It would be used for pure liquid growth, held to term, then shopped again. So if things go sideways it is easier to let go of. But if you have triggered income already on the 360, or especially the 222, then you very likely are stuck at that point.

So like I said, I see the two as being used for different purposes.
Even if you associate more risk with the Ultra Value (which I would disagree with), when your need is growth vs. guarantees often you take on a bit more risk. And since these are both floored products with 1% guarantees that extra risk (real or not) is extremely negligible.



But here is the thing, I do not expect either of them to hit the guaranteed min. since both have excellent renewal histories. With an extremely small % of policies severely below their original benefit levels, I feel both are strong options for what they are designed to do.

 

[SanDiego619]

It is a spread, and it is 35bps. An asset fee would be against the account value.

And I dont see it as any more scary than a possible 12% spread against a bond/large cap index. (dynamic balance)


In theory the DB index is not going to match the S&P 500 in performance, most likely it will keep pace at 50%-75%.
So how is 50%-75% of S&P performance with a 12% spread, any different than a 50% monthly averaged PR with a 6% spread? (assuming worst case scenarios)

Either way both products would most likely revert to their minimum guaranteed values of 1% for the surrender term.


But I actually see the Ultra Value as less scary because it is not something I would usually use as a lifetime income play. It would be used for pure liquid growth, held to term, then shopped again. So if things go sideways it is easier to let go of. But if you have triggered income already on the 360, or especially the 222, then you very likely are stuck at that point.

So like I said, I see the two as being used for different purposes.
Even if you associate more risk with the Ultra Value (which I would disagree with), when your need is growth vs. guarantees often you take on a bit more risk. And since these are both floored products with 1% guarantees that extra risk (real or not) is extremely negligible.



But here is the thing, I do not expect either of them to hit the guaranteed min. since both have excellent renewal histories. With an extremely small % of policies severely below their original benefit levels, I feel both are strong options for what they are designed to do.

Oh I was looking at the Ultra Classic not the Ultra Value. That's where I got the 45bps. Also, the reason I said Asset fee is because that it the wording used on National Western's rate sheet. I wasn't trying to compare this to Allianz but for arguement sake....

As far as S&P market growth goes, yes the chances are that the 95% par on national western would win out but on the flipside the BUDBI can still capture gains in a year where the S&P500 is down or flat because it is also attached to the bond market (I know not what you want right now but we don't know for the future). That's the point of the index. You may not capture as much upside as an S&P index but it's also possible for gains associated with another market. Obviously no one knows if that will happen for sure but you could say its a way of diversifying.

Like you said, clients for both. I was really more pitching my like for products with one moving part. That's all.

 

[evan44]

For myself you can take a look at the uncapped annuity from nationwide ( top rated) or Athene through Annexus

 

[FknWak]

I use mainly Equitrust Life & Annuity Company lately.
They have a good bonus (6% upfront) and a 50% participation rate,
all while offering return of premium (bail out) and has a few good bells and whistles you can add that are very competitive

 

[RyanCO]

I have an Allianz 360 who just did 19.3% for the year, a few others who did 17% for the year, and most did between 12-13%. I use the m2m caps and the S&P 500 with the Nasd 100 50-50. The Allianz preferred platform is really great. If its not Allianz, then Jackson has some good ones and Great American also. I was pretty stoked to see those returns, def getting a lot of referrals off of them!

I thought that most FIA's have annual caps?

.

 

[Newby]

I thought that most FIA's have annual caps?

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Many of the have no caps but use a participation rate instead. Some also have a spread or fee.

 

[taylormadetp]

I think the F&G product is best..due to the history of the uncapped index they are using

 

[scagnt83]

Having the top 5 fixed equity index annuity products is important, but what is more important is to be able to beat any income-rider payout (who you are competing against). What? You can create income-recovery solutions to beat the top income-rider payouts. You are just not familiar with the concept. - *deleted web address*