Selling FIA's

[bobson]

7 year point-to-point.... A mighty long time to wait to lock in gains. Especially when you can do a two-year monthly average 100% part, no cap, no spread and a 1 year p-to-p 8% cap with Equitrust.

Would you rather lock in your gains every year or two, or have the simple version where you have to wait 7 years to lock in your gains?

Patience is a virtue. If this is long-term money it won't hurt to wait if you think you will do better. Therein lies the crux.

 

[padthaiforlunch]

I'm thinking piece of mind for the client. Now, I'm still viewing this as a long-term investment, just using a shorter cycle to capture the gains. Nothing like waiting seven years to know how you will fare. Using this example,

http://www2.equitrust.com/docs/MarketSeven-PTP-2-25.pdf

or even

http://www2.equitrust.com/docs/MarketSeven-2YR-10-5.pdf

if the client purchased in 1998 and had to wait until 2005 to lock in the gain, he would be far worse off than by locking in the gains using a shorter term. Why not hedge your client by splitting the annuity between the two terms? Yes, it's a little more to explain, but it seems to be in the client's best interest.

 

[Brokers Alliance]

I was told by a NYL agent that they are no longer offering FIA and are only going with the variable annuities. He said that the FIA have too many moving parts and are too complicated to mess with. Any comments on that?

Not sure I understand that comment he made to you. Variable annuities to me, have more moving parts than FIAs and are more complicated. Our best selling a FIA currently has a bonus plus guaranteed interest rate and excellent surrender schedule. It is also A rated. What's complicated about that? It is also much less of a risk than VAs.

 

[Winter_123]

Not sure I understand that comment he made to you. Variable annuities to me, have more moving parts than FIAs and are more complicated. Our best selling a FIA currently has a bonus plus guaranteed interest rate and excellent surrender schedule. It is also A rated. What's complicated about that? It is also much less of a risk than VAs.

Looking at your 15 posts to date, it appears that you are here to market.

Winter

 

[Brokers Alliance]

Looking at your 15 posts to date, it appears that you are here to market.

Winter

Well, you know, Winter, if you look closer you will see that I at least attempt to make my posts informative by answering or commenting on a post with some education and experience and not blatantly asking for business.

Out of respect for Sam and this board, I may not psychologically analyze your posts