Source of Funds

[Crabcake Johnny]

The higher the health insurance premium the more I make but the higher the rate the LESS likely I am to land the deal. I can "try" to sell $1,200/mo premiums but I'll write 1 deal every other year.

This is not the case when someone has 300K available in investments and the insurance agent is supposed to make a recommendation as to how much of that to move into an annuity.

 

[Norwayguy]

The higher the health insurance premium the more I make but the higher the rate the LESS likely I am to land the deal. I can "try" to sell $1,200/mo premiums but I'll write 1 deal every other year.

This is not the case when someone has 300K available in investments and the insurance agent is supposed to make a recommendation as to how much of that to move into an annuity.

I see your point..that would be making a 300K investment recommendation to a person with $20 bucks in their account

But really the SEC isn't doing anything to help the public..They are acting in the best interest of those that they regulate...Once again Goverment Regulators are to chummy with those the regulate... The other issue is if I only had an insurance license then how is it that the SEC can regulate over my license...Only my DOI should be doing that.

 

[HarryRenard]

If someone has 300k in investments I don't know ANY company that would let me roll all 300k into an annuity.
The companys are more and more strict with suitability, they want more and more liquid assets available on hand, so there are some safeguards in place.

As for more training for new agents its really hard to say that will help at all because at the end of the day the books can't teach you how to handle "real world situations" that we run into everyday. When you include greedy family memebers butting in, emotions, investment experience other "advisors" adding their 2cents and health there is a lot to navigate that the books can't really teach you.

I am all for mentorships I've had 2 or 3 great mentors in the past 11yrs and
they have helped me more then any ce or compliance class ever would.

A good mentorship is should be any new agents top priority no matter the expense, it WILL put you years ahead of the game.

 

[0b1kanobee]

If someone has 300k in investments I don't know ANY company that would let me roll all 300k into an annuity.
The companys are more and more strict with suitability, they want more and more liquid assets available on hand, so there are some safeguards in place.

As for more training for new agents its really hard to say that will help at all because at the end of the day the books can't teach you how to handle "real world situations" that we run into everyday. When you include greedy family memebers butting in, emotions, investment experience other "advisors" adding their 2cents and health there is a lot to navigate that the books can't really teach you.

I am all for mentorships I've had 2 or 3 great mentors in the past 11yrs and
they have helped me more then any ce or compliance class ever would.

A good mentorship is should be any new agents top priority no matter the expense, it WILL put you years ahead of the game.

Harry, I'll let you know if the one I just did makes it through suitability. They do have the 10% they can take after the first year........

 

[HarryRenard]

An immediate annuity may be different with suitability.
Which is what I think you are working on.

I am just saying I am seeing more and more suitability issues.

 

[0b1kanobee]

An immediate annuity may be different with suitability.
Which is what I think you are working on.

I am just saying I am seeing more and more suitability issues.

This one is not an immediate but has a lifetime income rider on it.

 

[HarryRenard]

What percentage of his liquid assets does the annuity represent?

 

[0b1kanobee]

What percentage of his liquid assets does the annuity represent?

Almost 100%. Those liquid assets are mutual funds. He wants out of them. Wants this annuity and take lifetime income in 5 years for the rest of his life. Net worth is 130k but that includes 84k in mutual funds. (which I'm rolling)

 

[Norwayguy]

What percentage of his liquid assets does the annuity represent?

You know I am big on suitability but I've got another take on it...Assume 9% surrender charge and its now a maximum possible loss of 9% on his entire investment account, You never see these questions on Mutual fund apps yes I know there is suitability as well but the mutual fund account can lose more than 9% in a day.

Maybe I'm just a little suitability frustrated...Yesterday did a laddered approach on a portion of a clients account 3 annuities. Each company had a suitability form, My B/D because I have to run it through them had to do 3 suitability forms plus a seperate letter to explain why the 3 annuities.

 

[0b1kanobee]

You know I am big on suitability but I've got another take on it...Assume 9% surrender charge and its now a maximum possible loss of 9% on his entire investment account, You never see these questions on Mutual fund apps yes I know there is suitability as well but the mutual fund account can lose more than 9% in a day.

Isn't that the truth.