Holy Cow...what to sell!!

[Phillip Arnn]

Has anyone taken a CE course on annuities? Is it worth the time? It seems like the strength of the market at the time the annuity is purchased is a determining factor in interest options. I would like to learn all I can but am having a hard time with how to know which interest crediting option is better than the others, i.e. monthly pt to pt. annual pt to pt, pt to pt w/cap, something else w/ part. rate. Anyone know of a good, detailed source for training?

 

[Winter_123]

Has anyone taken a CE course on annuities? Is it worth the time? It seems like the strength of the market at the time the annuity is purchased is a determining factor in interest options. I would like to learn all I can but am having a hard time with how to know which interest crediting option is better than the others, i.e. monthly pt to pt. annual pt to pt, pt to pt w/cap, something else w/ part. rate. Anyone know of a good, detailed source for training?

The strength of the market is a factor but clients should be encouraged to think long term with annuities, particularly if they are retirement oriented funds. Actually, the return on CD's or lack thereof can be one of the biggest deciding factors for clients. CD's were way down a couple years ago and then they have been up and now they are are headed south again.

Don't get too scientific with your clients on the various crediting methods because it is more than either your or they can handle and you dont have a crystal ball anyway. Take a look at the products that you are working with and find out which crediting method has given the best return in the last ten years. I just tell clients that I dont have a crystal ball and neither do they but if they want to see which crediting method has performed the best recently then it is this one. And if they want to put half of their money in one crediting method and the other half in the crediting method that has also performed well then that is an option. Beyond that, there is nothing that you can or should do unless the client is highly knowledgeable and has their own thoughts. That's fine too.

Winter

 

[midwestbroker]

How do you check the historic returns of the crediting methods?

 

[Winter_123]

How do you check the historic returns of the crediting methods?

Talk with the support folks at each of the carriers and ask them. Some of them will say "duh, we don't have anyway of knowing that." Others will just give you the info. With American Equity, for instance, that info is all on their agent website and can be printed out.

Winter

 

[bobson]

Annuities have many variations. If you think for a moment you can pick the right one that will perform "the best" you are kidding yourself. Like any investment you won't ever know which is best until long after you have paid the premium.

I think showing anyone more than three annuities is just cause for confusion.