- 2,152
Totally disagree with this on so many levels I don't even know where to start.
Equity Indexed Annuities: Are they the real deal or junk products?
- Thread starter NHB_MMA
- Start date
-
- Tags
- annuity indexed annuities
Totally disagree with this on so many levels I don't even know where to start.
- 14,808
Well I certainly don't want some life insurance agent 2 weeks behind on his car payment coming over my house to explain to me why my equity investments and CDs "suck" and I should move the money into an annuity. I'd ask him to compare my DRIPs and most likely he'd say "what the hell is a DRIP?"
- 129
Because they offer a minimum guaranteed return backed by the full faith and credit of an insurance company.
EIA's are great for conservative investors who want to participate in market gains, without equity exposure. Even if the market tanks, they enjoy a minimum return that beats most CD's and MMA's.
- 2,152
Just another idea of Federal Encroachment, Regulations and restrictions from such as the SEC have been generally marching forward, it has to stop sooner or later. Yet they will not stop here if any one thinks that giving them EI's will quench their thirst. Most people that are all for EI's to moved to Securities are the same that agrees that the Tax Advantage of Insurance to be removed also. Only thing we do by giving in is to validate these people never ending thirst of Federal Powers, such people as the SEC and NASD understand that these Reg's only support their people over the Insurance people.
- 2,152
That is your choice, a choice you should have! See, take away someone rights equals less choice for you. This is called by many the slipperly slope, such as "Gouging Laws", they are misplaced and work against the general well being of the population. Yet so many people are so dumb down they simply can not grasp obvious laws of supply and demand.
- 14,808
Well we've been down this road before so this will be my last post on this topic:
When I meet with clients I'm trained and licensed to sell health insurance. I can compare the policy they currently have and make a recommendation on whether or not they should move.
The average life agent sits down with a potential annuity client and is asked to compare financial vehicles that they have had no formal training on. There are many types of CDs and a myriad of investments. I'm not sure how any agent can recommend that "X" amount of anyone's portfolio be moved into any annuity basically by talking out their ass.
I would also be interested in what kind of training the average annuity agent gets before being unleashed on the unsuspecting public. My guess would be the same amount of training we all get - none. They should be in people's homes talking about investments? It's bad enough we have horribly trained agents in the health industry. These agents either don't know the ramifications of "Right Start" or "Copay Saver" or simply don't care. Their evil twin counter parts are running Red Lobster dinners scaring the crap out of seniors with misinformation and basically not knowing their ass from a hole in the wall.
Opinions vary. I rest.
When I meet with clients I'm trained and licensed to sell health insurance. I can compare the policy they currently have and make a recommendation on whether or not they should move.
The average life agent sits down with a potential annuity client and is asked to compare financial vehicles that they have had no formal training on. There are many types of CDs and a myriad of investments. I'm not sure how any agent can recommend that "X" amount of anyone's portfolio be moved into any annuity basically by talking out their ass.
I would also be interested in what kind of training the average annuity agent gets before being unleashed on the unsuspecting public. My guess would be the same amount of training we all get - none. They should be in people's homes talking about investments? It's bad enough we have horribly trained agents in the health industry. These agents either don't know the ramifications of "Right Start" or "Copay Saver" or simply don't care. Their evil twin counter parts are running Red Lobster dinners scaring the crap out of seniors with misinformation and basically not knowing their ass from a hole in the wall.
Opinions vary. I rest.
- 2,152
I would then support the suggestion one should have some Medical background to sell Health Insurance! If you don't have a medical background what are you doing out there advising people on their health care coverage? I would think that Medical has far more indepth issues then investing, in fact we all know it does. Retirement funding is pretty straight forward subject, unless you want to bring in issues to "Muddy the Waters" as the old adage goes. You suggest a rather weak argument, I can also easily suggest why are people that can past a 7 test allow to sell securities and the like? Shouldn't that take a College Education maybe with Intern Training? Now shouldn't a group of people identify the Colleges allow to do such education? If you don't know where I'm going, it is a short end run around to the AMA, I'm sure you some know exactly where I'm going with this, those that endorse this looks at the AMA as a model to the CFP. Yet as you suggest it is probably well above the discussion of any use here.
Yet bottom line is this, these people that support and making noise about the EI's may it be Annuities or Universal Life also wants the tax advantage removed from WL, UL's and likely all insurance products. I just can not believe some otherwise intelligent people fall for such nonsensical arguments?
- 1,926
I sold the first EIA when they came out and have sold a few along the way. None of the annuities I have sold have returns better than CD's or guaranteed fixed annuities. These EIA ARE being sold by many agents as a way to get market like returns with out the downside risk. This is where it gets troublesome. IMO, EIA are great for the agent and the insurance company. I have spent alot of time back testing them and the returns just aren't there. In addition, the companies play around with the cap and participation levels always putting the policyholder in worse shape than the original caps and par rates. I only sell them if asked by a client and then I tell them my opinion. Have a client that insists on moving 300,000 into an Allianz bonus policy, I wouldn't do it and told him, but wants to anyway.
- 1,328
EIAs offer minumum guarantees and no risk of loss due to the index having a negative year. They are FIXED products.. Why not make universal life and traditional fixed annuities securities products as well while we're at it!! There are unethical agents having seniors move funds out of investments into those products as well and selling underfunded universal life insurance contracts.. Maybe we should let the Feds regulate health insurance as well... There are tons of agents running around selling Saver and Right plans and touting them as comprehensive major medical. There are unethical people in all sectors of the insurance and financial services industry.. Having a fixed product registered as a security will not prevent this just like it would not stop people from selling Right and Saver plans on the health side. Regardless of the level of education, anytime there are commissions involved, there will be unethical people.
- 2,152
In the end it comes down to one simple belief, do you believe the free market or government regulations to be better? Obviously EIA's will change, plenty of better EIA's are emerging from companies that have jumb aboard with various variations competeing for market share, some are excellent some are garbage. So happens I believe in the free market and people, some don't and think that Government control is the answer and a fix for all problems or some problems. LOL, likely problems that don't effect them! Like people who sell health, they see no problem with government stepping in to the life side but what happens when noise starts up about selling health? You know it will eventually.
In fact, I think if one wants to sell Health coverage, they should at the minimum hold a RN license, just by chance I would need very little additional credit and yes I would have to do my time in training but that would be little problem for me. Yea I think that is a grand idea!
In fact, I think if one wants to sell Health coverage, they should at the minimum hold a RN license, just by chance I would need very little additional credit and yes I would have to do my time in training but that would be little problem for me. Yea I think that is a grand idea!
