Client Solication Letter

[Tahoe Ray]

I agree MVA not relevant if hold to surrender. I don't think I have every had a client early surrender.

For $1-2m typical client of mine they only do $100k or so into a fixed annuity (last one over a year ago). They are growth investors but want to have the option of not having to liquidate equities in a 2008 type down market. The idea is if their equity holdings are down 20% (like a 2008 situation) would they want to lock in that loss if they need money or pay a surrender fee of far less to cash in an annuity. Fortunately none have had to make that choice since didn't need cash in like the 2008 Great Recession.

I get what you're saying, but that's like saying your going to liquidate your bonds in a rising rate environment or you need 100% of your retirement/investment account at once.

2001/2 were rough as well but like you said, I know of no one liquidating all of their accounts (to incur surrender, MVA, or whatever) during that period either.