- 1,641
Nice!
- 1,802
Excellent idea Charpress!
- Thread starter
- #13
- 429
cgfoster34
New Member
- 2
Freddie, couple thoughts.
one, clients might be able to harvest some losses by getting out now depending on what they are currently in. So that is worth considering.
Second, here is a strategy we use a LOT right now, but you need to be securities licensed to accomplish it.
Use a company with 10% bonus and 10% free withdrawal in the first year (immediately, we use aviva mainly).
So, for example, we move over $1,000,000, get a 10% bonus. We then withdraw the 10% bonus ($100k), put the appropriate amount into a short term cd to cover taxes (maybe $25k) and then use the rest to buy options on individual stocks. That $75k may allow us to control $250-350k in stock options depending on what we pick.
Now the client has their $1,000,000 protected with some upside in the indexed annuity, no more losses. They also have some great upside potential (and potential for loss) with the options they control that we bought with the "house money"
If the markets go up, we've got $1.3 million participating (YES, not fully participating, but participating) and we've protected $1 Million from losses.
Do it yourselfers LOVE this because they can pick the stocks. The men love it because they get to play financial advisor. The women love it because they are protected.
Obviously, it doesn't work for everyone, you need to make sure it's suitable, but can be an effective strategy for the prospects that you described (have to wait since i'm so down)
one, clients might be able to harvest some losses by getting out now depending on what they are currently in. So that is worth considering.
Second, here is a strategy we use a LOT right now, but you need to be securities licensed to accomplish it.
Use a company with 10% bonus and 10% free withdrawal in the first year (immediately, we use aviva mainly).
So, for example, we move over $1,000,000, get a 10% bonus. We then withdraw the 10% bonus ($100k), put the appropriate amount into a short term cd to cover taxes (maybe $25k) and then use the rest to buy options on individual stocks. That $75k may allow us to control $250-350k in stock options depending on what we pick.
Now the client has their $1,000,000 protected with some upside in the indexed annuity, no more losses. They also have some great upside potential (and potential for loss) with the options they control that we bought with the "house money"
If the markets go up, we've got $1.3 million participating (YES, not fully participating, but participating) and we've protected $1 Million from losses.
Do it yourselfers LOVE this because they can pick the stocks. The men love it because they get to play financial advisor. The women love it because they are protected.
Obviously, it doesn't work for everyone, you need to make sure it's suitable, but can be an effective strategy for the prospects that you described (have to wait since i'm so down)
- 1,802
What are you selling long right now?
