Indexed annuity sales off to strong start in 2018

[Insurance Forums Staff]

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Indexed annuity sales off to strong start in 2018

With the DOL fiduciary rule being vacated, the LIMRA Secure Retirement Institute is now forecasting an indexed annuity sales increase between 5 and 10% this year.

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[Newby]

My Alliance annuities paid 18% last year. Unbelievable! I always expect 3 to 4% average.

Agents fail to put money back for retirement as bad as the general population. That’s hard to believe but true. If you think you will retire off of renewal income or building a downline of agents as the recruiters often pitch, you better die early in your retirement. That stuff defies logic.

The way to retire is to make a lot of money now and put a portion back every year. Either in annuities or the market or something. Just do it.

Selling yourself an annuity will force you to study them and learn more about them. Then when that unexpected appointment turn to “I can’t afford anything because my $100,000 CD is only paying 1%” you will be better prepared.

 

[jboussea]

Newby,.. what kind of index did you chose?

 

[Newby]

Newby,.. what kind of index did you chose?

The one that paid the 18% was the Barclay's index. It was uncapped but had a 3% spread I believe. For agents that don't understand that it means that is the market just moved a little, I am heavily penalized by the spread. It the Barcaly index went up 4% I would get 1%. If it went up 3% I would get zero. But it moved 21% I got 18%.

I own a mixture of annuties covering many bases. Most agents will never build the base of Medicare renewals that I did. Most agents will never build up as many down line agents that I did. But somehow I hear agents say they want to build these things or they can never retire.

My advice is retire off of your retirement savings. That is the core of your retirement. The renewals and over rides can help in the early years. But if you are retired that stuff will go away in a few years.

 

[Newby]

The one that paid the 18% was the Barclay's index. It was uncapped but had a 3% spread I believe. For agents that don't understand that it means that is the market just moved a little, I am heavily penalized by the spread. If the Barcaly index went up 4% I would get 1%. If it went up 3% I would get zero. But it moved 21% last year so I got 18%. And mine is locked in. If I was actually invested IN the Barclays funds and it dropped the next year 10% I would lose a lot of this year's gain. In my annuity I will lose nothing.

I own a mixture of annuties covering many bases. Most agents will never build the base of Medicare renewals that I did. Most agents will never build up as many down line agents that I did. But somehow I hear agents say they want to build these things or they can never retire.

My advice is retire off of your retirement savings. That is the core of your retirement. The renewals and over rides can help in the early years. But if you are retired that stuff will go away in a few years.

 

[jboussea]

3% spread for an annuity product sounds pretty good. Is the barclay's index a low volatility product?

wonder what the spread is for index life