Does WFG's IUL Return 9.35%?

[Allen Trent]

your cooking with hot grease.

Some of my favorite cheat foods are cooked in hot grease. Deep fried Twinkies, fried chicken, onion rings, jalepeno poppers, wings, elephant ears

 

[Affluencer]

I was told by a WFG agent that Transamerica's IUL has a 9.35% return for the past 25 years. Is that normal and do they have an exclusive product?

New to the forum but I am with WFG. My upline is probably one of the "top guys" at the company. He sits on a number of boards throughout. His entire career was built off of the IUL. He is also a client of many IUL's and on good years he will see 11-15% gains BUT over a 20 year period on every IUL owned and sold it is always going to average out at around 6 or 7%. It obviously varies based on the indexes you select, but I can't imagine any scenario where someone is averaging 9+ %. If so, I would love to learn how they are structuring their policies. Also, having a choice of carriers to choose from, it's not even most common to choose Transamerica. Most of the reps I know always go with Nationwide. So I doubt anyone would be forgoing Transamerica's 9% returns to go with another carrier.

 

[Allen Trent]

he will see 11-15% gains BUT over a 20 year period on every IUL owned and sold it is always going to average out at around 6 or 7%.

If you are willing to put it in writing that I will ALWAYS average 6-7% gains over 20 years, I will buy a huge policy from you asap. Just send me this in writing, with proof of E&O coverage & signed off by the carrier that I will ALWAYS gain 6-7%.

Note, gains are different than index credit as all the costs & fees will come out of the policy before you can have any gains.

I sure hope you are not telling potential clients they will ALWAYS gain 6-7% over 20 years

 

[Edwardfin]

Affl

If you are willing to put it in writing that I will ALWAYS average 6-7% gains over 20 years, I will buy a huge policy from you asap. Just send me this in writing, with proof of E&O coverage & signed off by the carrier that I will ALWAYS gain 6-7%.

Note, gains are different than index credit as all the costs & fees will come out of the policy before you can have any gains.

I sure hope you are not telling potential clients they will ALWAYS gain 6-7% over 20 years

You know I really believe that a decent product will gain 6-7% over 20 years especially if properly structured. However, I also agree that we shouldn't tell a client that.

 

[Affluencer]

If you are willing to put it in writing that I will ALWAYS average 6-7% gains over 20 years, I will buy a huge policy from you asap. Just send me this in writing, with proof of E&O coverage & signed off by the carrier that I will ALWAYS gain 6-7%.

I would never guarantee ANYTHING lol. It's an indexed account. Some years you'll get the 0% floor. However, I will say that 5, 6, 7% is realistic and what some at WFG are indeed averaging. Telling people real life examples or returns you've seen so they can get a realistic idea is completely different from saying "I guarantee". I have been in the industry for 5 years, I don't have any 20 year examples but I know plenty of guys at WFG seeing above average returns. 9.35? No. Some years? Absolutely. Average over time? No way. 5, 6, 7? Very very realistic average and we have plenty of examples to pull from to show those numbers. Some of our bigger clients get more because they over fund the heck out of a policy, use the cash value to purchase cash flowing assets like real estate and then use the cash flow to pay back the interest + the loan and profit from their own borrowing. That's the wealth building beauty of insurance. Using it as a tool to create wealth, not as a retirement plan. One of our clients funds a policy with business loans, uses the cash value to purchase real estate, pays back back the loans on the cash value, the business loans will be paid back out of the death benefit. The returns aren't the selling point in my opinion. It's teaching people how money works so they can use insurance as an asset to build wealth in multiple ways. You want 10% returns? Go get scammed by Curtis Ray or some compound interest guru. Want to learn how to make your money work for you right now? Find someone that is doing more than selling you a product.

Note, gains are different than index credit as all the costs & fees will come out of the policy before you can have any gains.

I sure hope you are not telling potential clients they will ALWAYS gain 6-7% over 20 years

 

[Tahoe Ray]

You know I really believe that a decent product will gain 6-7% over 20 years especially if properly structured. However, I also agree that we shouldn't tell a client that.

Yep.

Expectations should be closer to a bond...4-5% max. Anyone getting 6-7% will be thrilled, getting less you've already set a reasonable expectation.