FIA with Most Upside Index Potential that Allows 10% Free Withdrawals?

[cloisbarton]

I would agree with Josh on this one on annual reset.

Here is the Bloomberg site that he mentioned with TVI Index last 5 years (Again 5 year reset)

Annuity Linked TVI Index (USD) Chart - ALTVI - Bloomberg

Also, Athene product has monthly point to point - which can produce bigger upside.

If you are going to do monthly sum do the Choice 10 the cap is 2.75% compared to 2.35% on the 8 year.

You could also do a split annuity concept - income/growth scenario. If you want to be creative.

Just thoughts

 

[Tahoe Ray]

Aviva has a 15 year product with a 7% bonus and an uncapped strategy with annual reset - 100% participation rate, 2.85% spread on the annual reset.

If the market returns 15% the client is making 12.15% return (15% - 2.85%).

I deleted an earlier post on this but what do you think about the index that they're using in this product? The 1 year number is close to 15% but the overall averages net the spread are significantly lower than the S&P. The 10 year product looks even worse.

 

[Josh Landis]

Nobody really knows what the index is going to do in the future, but we do know that it is up almost 16% over the past year (so while you're right that you're not getting the same return as the S&P in this situation, you're still would have returned over 13% - not bad). The index is designed to be a low volatile index which I think you you can argue can be good or bad. It's a great product in my opinion for people looking for the most upside with the annual reset.

 

[Tahoe Ray]

Nobody really knows what the index is going to do in the future, but we do know that it is up almost 16% over the past year (so while you're right that you're not getting the same return as the S&P in this situation, you're still would have returned over 13% - not bad). The index is designed to be a low volatile index which I think you you can argue can be good or bad. It's a great product in my opinion for people looking Jo Jo for the most upside with the annual reset.

I'll agree with that...and that's why I like the 15 vs the 10. It reminds me of Pru's VA. I just wish that they would have attached a traditional income bene instead of that pension option that the carriers seem to be gravitating towards.

 

[dignitylmg]

Equitrust has the Market Twelve Bonus available in SC, 6% premium bonus, accumulation bonus of 2% years 2, 3, 4. 10% withdrawals on accumualtion. works good as a split annuity on a 5 year basis.

Athene Benefit 10 has a 6% premium bonus, 10% withdrawals on accumualtion.

North American Company for Life and Health has their Charter 14 with an 8% premium bonus, 10% withdrawals on accumulation.

Reliance Standard does not have a bonus, has 10% withdrawals of accumulation value, 25% withdrawals for nursing home and entire amount for terminal illness.

Just some ideas...even though rates are down, I like the split annuity concept with the Equitrust product

 

[anonymous1]

Sagicor fia 5% bonus 2% min guarantee compounded. 4% s&p cap. 20% pArticipation on global strategy

 

[Josh Landis]

In my opinion, nobody knows what the index is going to do in the future, we can only base it on historicals which the index started in March of 2012. Even the back testing only goes back to 1990 unlike 60+ years for most other indexes.

I'm not sure what the "new" index is, the historicals or the details on that yet, but we can only base a product on what we know and we know that the TVI has a 5 year reset and has been down considerably since it's inception into the real world.

I'm not saying that the product is good or bad. Truth be told, if the client is looking for accumulation and never plans on using the money, the product has the potential to producer higher returns, but on the other hand it has the potential to return nothing over the course of 5 years.

The thing to remember for those clients planning on letting the account grow before taking income, there are options out there that provide a guarantee income rider as opposed to just "hoping" you'll be able to get the same income.

However, someone looking simply to let the account grow and never take income, this product may be a fit.

 

[scagnt83]

For pure accumulation Anicos value lock 7 & 10 are good products. I think the 10 might still be at 100% participation.

 

[cloisbarton]

Value lock has 100% participation rate right now.

It is basically a 10 year reset product with monthly average where at the end of the 10-year indexing term, its interest is measured by comparing the starting S&P 500 Price Index to the average of all monthly S&P Index values during the 10-year term.

You do have the right to 'lock-in' interest earnings related to index gains to date at any time during the 10-year indexing term. If you do chose to lock-in, you will receive a pro-rata amount of interest related to the index gain immediately credited to your contract. After that date, you will receive interest at a "Value-Lock" rate, determined at the date you lock-in, which will be credited until the end of the 10-year indexing term. Once your lock-in interest related to Index gains, you cannot return to participate in the performance of the Index.

Not sure about this product as a the best accumulation product.

Averaging tends to smooth out your returns, although it protects you against any declines at or near your anniversary date from significantly affecting your annual.

 

[TheLevel]

Take a look at this for accumulation...

Security Benefit TVA (Total Value Annuity) using the Transparent Value Blended Index crediting method with is a 1 Year method with 100% participation, NO CAP with just a .50% spread. If you need an income rider, it has a 4% compounded feature that stacks on top of the index gain, if any for that year. The income withdrawal % is tough to beat at most ages.