Short Term Annuity

[WPM]

I'm looking for a short term annuity with some liquidity options. The client is looking at 6 mo and 1 yr CDs as a holding tank until they make some long term decisions, so I'm just trying to find something that will "beat the bank" and give them liquidity.

Any suggestions? Thanks

 

[Norwayguy]

I'm looking for a short term annuity with some liquidity options. The client is looking at 6 mo and 1 yr CDs as a holding tank until they make some long term decisions, so I'm just trying to find something that will "beat the bank" and give them liquidity.

Any suggestions? Thanks

Does liberty life still have a liqued annuity paying 1% interest?

 

[scagnt83]

I'm looking for a short term annuity with some liquidity options. The client is looking at 6 mo and 1 yr CDs as a holding tank until they make some long term decisions, so I'm just trying to find something that will "beat the bank" and give them liquidity.

Any suggestions? Thanks

Bankers has a totally liquid 1 year option that pays them 1% and pays you 0.5%

 

[WPM]

Bankers has a totally liquid 1 year option that pays them 1% and pays you 0.5%

I know that it's short term, but any concern about their ratings?

 

[nathan.lee]

I know that it's short term, but any concern about their ratings?

You have a one year fixed product paying the client 1.10% and you .5%. So the greatest concern would be that Liberty Bankers could fail during that time. The alternative is that the client places the same money in a CD.

Georgia's Guaranty Association protects consumers' annuity cash value up to $100K per contract owner/annuitant.

http://www.gaiga.org/faq.cfm?id=147

Georgia hasn't exactly been a great state for local banks and the failures here have cost the FDIC $1.8BB in 2011.

http://www.bizjournals.com/atlanta/print-edition/2011/12/30/georgia-bank-failures-cost-fdic-18b.html?page=all

In Feb of this year, A.M. Best removed Liberty Bankers from review, affirmed their B- rating, and gave the a "stable" outlook.

http://www.reuters.com/article/2012/02/24/idUS202871+24-Feb-2012+BW20120224

All of that being said, if your clients are placing under $100K and their time horizon is 1 year then I think the Liberty Banker's Banker 1 product could be an appropriate fit.

Hope this helps!

 

[scagnt83]

You have a one year fixed product paying the client 1.10% and you .5%. So the greatest concern would be that Liberty Bankers could fail during that time. The alternative is that the client places the same money in a CD.

Georgia's Guaranty Association protects consumers' annuity cash value up to $100K per contract owner/annuitant.

http://www.gaiga.org/faq.cfm?id=147

Georgia hasn't exactly been a great state for local banks and the failures here have cost the FDIC $1.8BB in 2011.

http://www.bizjournals.com/atlanta/print-edition/2011/12/30/georgia-bank-failures-cost-fdic-18b.html?page=all

In Feb of this year, A.M. Best removed Liberty Bankers from review, affirmed their B- rating, and gave the a "stable" outlook.

http://www.reuters.com/article/2012/02/24/idUS202871+24-Feb-2012+BW20120224

All of that being said, if your clients a placing under $100K and their time horizon is 1 year then I think the Liberty Banker's Banker 1 product could be an appropriate fit.

Hope this helps!

Well said.

I wouldnt use them for anything long term, and I would keep it within SGA coverage limits.

Its a great way to acquire clients and gain trust in situations that you normally wouldnt be able to.

 

[WPM]

Thanks Nathan and scagnt83 for the replies.

This is purely short term and a "foot in the door" proposal.