How Are Your Clients' Indexed Annuities Performing?

[RyanCO]

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This is a topic I rarely see, and given the amount of EIA/FIA business being written, I'd love to know what you're seeing for your clients' annual performance.

Also please feel free to include the annuity they have.

Looking forward to it, thanks!

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[Justin Bilyj]

I think that the crediting stratrgy would alter even the same annuity, but good question overall.

 

[Norwayguy]

My clients and I have been happy with the performance they have recieved...I think part of this is a white paper I use that shows if you could get rid of all losses you would only need to recieved about 30% of the markets gains to equal the same long term gains. I combine that with participation rate products.

I think a large part is setting the right stage....Yes FIA products in the past have returned 42% returns in a year but that is by far the exception and should not be what your clients are expecting.

 

[RyanCO]

My clients and I have been happy with the performance they have recieved...I think part of this is a white paper I use that shows if you could get rid of all losses you would only need to recieved about 30% of the markets gains to equal the same long term gains. I combine that with participation rate products.

I think a large part is setting the right stage....Yes FIA products in the past have returned 42% returns in a year but that is by far the exception and should not be what your clients are expecting.

Peter, if I could get a little more specific, wholesalers and FMO's I've spoken with say that a 4% to 5% long-term return would be an appropriate target. Does that sound reasonable to you, at least in general?

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[Norwayguy]

Peter, if I could get a little more specific, wholesalers and FMO's I've spoken with say that a 4% to 5% long-term return would be an appropriate target. Does that sound reasonable to you, at least in general?

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Yes it sounds reasonable....So many people say a historical average annual return of the S&P500 is 11 1/2 percent so 30% of that number is less than 4% so I think 4-5% is a good number.

 

[jmarkk1]

Where do you get a paper showing that clients only need 30% of gains if they could eliminate market risk?

 

[Norwayguy]

Where do you get a paper showing that clients only need 30% of gains if they could eliminate market risk?

PM me.....I am on my phone and for the life of me can't remember the name.

 

[jmarkk1]

Just tried but forum says you've exceeded messages and you need to delete messages in order to receive new....you can email me at [email protected]

 

[TRSecurity]

In the past few months I've had many clients hit the annual caps. Luckily for them they are over 6%.

However, it will be tough to hit that yearly average of 5% many agents reference if the caps are 3% on the current products.

Switching to the monthly P2P, I've had clients in the past two months with 21% returns and some with 0%. Timing is everything with that strategy.

With the most recently written annuities, the average first year return has been about 2%. This does not include any bonus if applicable.

 

[RyanCO]

In the past few months I've had many clients hit the annual caps. Luckily for them they are over 6%.

However, it will be tough to hit that yearly average of 5% many agents reference if the caps are 3% on the current products.

Switching to the monthly P2P, I've had clients in the past two months with 21% returns and some with 0%. Timing is everything with that strategy.

With the most recently written annuities, the average first year return has been about 2%. This does not include any bonus if applicable.

Great stuff, thanks.

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