Dateline Undercover on right now

[Guest]

Thats ok though because the commissions are usually lower than an annuity sale.

<<<WEIGHING ONE AGAINST THE OTHER???>>>>

The Fact of the matter is the show was aired with only SOME half Truths...and it should delve into unscrupulous behavior by FA's that push 80+ yr old ppl into high risk investments also!!!!

 

[senior-advisor-indiana]

M&M must have melted away?

 

[midwestbroker]

Not having sold an annuity prior but getting into that segment, I am looking at this:

CD vs. Fixed Annuity (3-5 year term)

Not rocket science. Neither product is that complex. You deposit money, you get X% back per year. With a CD you get a 1099 each year to pay taxes on the interest earned, with a annuity you do not, it defers to when you actually pull the money out or annuitize it. As long as the client can walk away from the annuity at the end of the term with out being forced to annutize with full value, they are very similar.

Easy to understand, good for the senior who wants to defer taxes, etc.

Now the greedy agent may try to do a 10+ year FIA with a 8-10% commission...but what they are not realizing is that at the end of the short annuity term, they can roll the money into another annuity and get paid again, and they are not putting their licenses on the line.

Or am I missing something?

 

[Mr. Bill]

Not missing anything, pretty much spot on. I believe some states have even gone so far as disallowing annuities longer than 10 years. Would likely be the trend in the future.

One of the Allianz problems was they were not promoting (through FMOs like GamePlan) walkaway products, when clients found out they had to annuitize (and earn the fixed account rate on the ENTIRE portfolio balance) whew! I believe they have had to change things since.

 

[senior-advisor-indiana]

Midwest,
That is a great plan that you have. Some seniors want to give themselves the opportunity to get a better return than they could in a regular fixed annuity or CD. I think the MYGA's are better for clients that want a fixed rate.

I have ran into tons of seniors that have bought an Allianz annuity. Most are unhaooy and did not realize the had to annuitize to recieve funds. Allianz really didn't go out of the way to explain that to agents either. I have never and will never sell Allianz. However I did run into a couple that loved the idea that the beneficiaries of their annuity could not recieve the funds in a lump sum.
Also, the 15% bonus annuity they have, does not recieve the bonus until you annuitize it. I had to figure that out for myself even after a 30 min pitch from my marketer. You really have to double check everything some FMO's tell you.
I have had no problems with FMO's that do not carry Allianz. Coincidence? I don't know.

 

[sman]

Midwest,
That is a great plan that you have. Some seniors want to give themselves the opportunity to get a better return than they could in a regular fixed annuity or CD. I think the MYGA's are better for clients that want a fixed rate.

I have ran into tons of seniors that have bought an Allianz annuity. Most are unhaooy and did not realize the had to annuitize to recieve funds. Allianz really didn't go out of the way to explain that to agents either. I have never and will never sell Allianz. However I did run into a couple that loved the idea that the beneficiaries of their annuity could not recieve the funds in a lump sum.
Also, the 15% bonus annuity they have, does not recieve the bonus until you annuitize it. I had to figure that out for myself even after a 30 min pitch from my marketer. You really have to double check everything some FMO's tell you.
I have had no problems with FMO's that do not carry Allianz. Coincidence? I don't know.

I love when I get the calls from FMO's checking to see if I write annuities and they start pitching Allianz. I stop them dead cold and tell them I will never write an Allianz annuity and they should be ashamed for promoting them. They always start back tracking and stating they have other carriers. This lets me know where their loyalties lie.

I use a website to run comparisons for my own benefit. It's Welcome to Annuity Marketing Services. You can register and use their calculators. If you know the participation rate, spreads and/or margins, you can run a hypothetical for most any index annuity. Of course, the one thing we all know is that these moving parts can change from year to year, so it's not an exact science. There's also EIAnalyzer on Personalyze EIAs. They have many carriers listed where you can run some basic comparisons.

What I have found is that many index annuities will likely give somewhere between a 4%-6% return over the life of the annuity (usually in the 5-10 year range). So if someone isn't getting those types of returns from their other fixed investments and they want to take a portion of their portfolio and put it in an index annuity, I see no problem with it. Just don't use the crap they were using on the show. We have to also remember some of these newer index annuities are providing a lifetime withdrawal benefit regardless of the return (similar to the variable annuity plans).

 

[CHUMPS FROM OXFORD]

Very nice site. If you would like some free grammatical tips, I'll be happy to email them to you.

 

[sman]

Very nice site. If you would like some free grammatical tips, I'll be happy to email them to you.

Chumps,

Was this for me? If so, I'll take whatever grammatical tips you have.

 

[midwestbroker]

Well I am glad to see that I am on the right track...thanks!

 

[senior-advisor-indiana]

Well I am glad to see that I am on the right track...thanks!

Well, almost. You still need to go to a 3 week class on the ins and outs of CD's.