Variable Annuity Recommendation

[kenbill]

The problem is the client gave different answers in different meetings regarding risk tolerance. He wants both the better guarantee with lower rider fee from IA and more upside potential of the stock market from VA. Obviously, that's not possible. So it is better to show clearly the difference in guarantee, fees and trade-off of the higher potential of step-up from VA. Another possibility is to split the amount and buy both.

 

[budfox7]

KenBill,

If you arent sure your self, more then likely your client will buy what ever your recommending because they probably dont understand them selves. I have put 5 mill in Jackson over the course of a few years. It has worked great for my clients especially with the volatility of the markets. Secondly, your should use Jackson because of their service reps. I do not know what they do over there in Denver, but they are drinking some koolaid or redbulls or something. They are extremely friendly , very proficient, they want your biz and will send out wholesalers with DEEP POCKETS. I speak from experience.

Their living benefit has changed but I know currently they offering 6% simple interest with an annual lock. The thing with JACKSON that NO annuity has is NO FORCE MODELS with amazing subaccounts. You can go 100% EMM/ equities/ or bonds/REIT and alternative investments ( not that you should !) but allocating 10-15 to a non corelated asset is great. Also , the contract is fairly cheap i believe 125bps for the contract. Prud is great but the sub-accounts suck testicles. My recommendation is do 1/2 in VA and half in a EIA. Your client will have the fixed and VA component and your client will get paid nice. You should get paid handsomely as well and hopefully your kind enough to buy me a beer.

Are you indy or @ a wire ?

 

[kenbill]

Thanks for the recommendation.

After further meetings and research, we plan to do the following.

$100K to RBC index annuity with the income rider (7.5% growth & automatic step up and 5.5% guaranteed withdrawal)

$200K to Transamerica Principium_II VA with GMWB rider (5% growth & automatic step up and 5% guaranteed withdrawal)
M&E: 0.85%
Rider: 1.25% (can allocate up to 75% to stocks)
Subaccount: 0.75% (all vanguard ETFs)
5-year surrender period

 

[ntbktrader]

I think a lot of people like pru because the move to bonds in the subaccounts when the market tanks is automatic. Therefore, the client is being protected from the big drops and then is fully invested when the market stabilizes. In an environment like 2008 wouldn't pru's VA outshine the rest by a good margin?

I remember looking at the illustrations with real market data with pru's va and it seemed to perform extremely well? yeah you lose control but at the same time their trading program seems very effective.

No?

 

[budfox7]

Dude, thats any decent VA Pru Met Jackson Lincoln AXA, if you put it in a active portfolio target risk fund any good subaccounts from big name would readjust to the asset class. you just have to find out what the client needs, because they spread on these M&E are quit different. Pru is expensive and so is AXA and if you add the enhanced death benifit your looking @ a 3% contract like Allianz

 

[scagnt83]

$200K to Transamerica Principium_II VA with GMWB rider (5% growth & automatic step up and 5% guaranteed withdrawal)
M&E: 0.85%
Rider: 1.25% (can allocate up to 75% to stocks)
Subaccount: 0.75% (all vanguard ETFs)
5-year surrender period

Why Transamerica when both JNL and Pru have FAR superior products???

Splitting between products makes sense, but not sure how you landed on the TA VA...
You can get bigger guaranteed withdrawals and step-ups with both PRU and JNL; was it the low M&E?

 

[budfox7]

Thanks for the recommendation.

After further meetings and research, we plan to do the following.

$100K to RBC index annuity with the income rider (7.5% growth & automatic step up and 5.5% guaranteed withdrawal)

$200K to Transamerica Principium_II VA with GMWB rider (5% growth & automatic step up and 5% guaranteed withdrawal)
M&E: 0.85%
Rider: 1.25% (can allocate up to 75% to stocks)
Subaccount: 0.75% (all vanguard ETFs)
5-year surrender period

YO ! seriously, do a Jackson product or Pru dont mess with transvestite services, they dont have the subaccounts like jackson. No forced models, they have 6% annual lock or market, and with thier death benefit you can withdrawl all the money and still have a death benefit claim as long as there is a dollar left in the annuity. REMEMBER THIS! have you experienced the back office at transamerica, im not talking about the sales desk but the ease of Jackson customer service is worth the business. Believe me they are great, if I was a wholesaler i would work for those money hungry bastards. Also, let a wholesaler take you out and explain his product to you. GOOD LUCK AND LISTEN TO THE PEOPLE ON THIS BOARD

 

[C3PM]

Dude, thats any decent VA Pru Met Jackson Lincoln AXA, if you put it in a active portfolio target risk fund any good subaccounts from big name would readjust to the asset class. you just have to find out what the client needs, because they spread on these M&E are quit different. Pru is expensive and so is AXA and if you add the enhanced death benifit your looking @ a 3% contract like Allianz

Met doesn't force you to move at any point. They WILL force you to stay within a given allocation (basically you must have at least 30% in bonds and they cap the percentage in the riskier sectors) however it's pretty similar to how one would probably allocate it.

 

[BNTRS]

Speaking of fees and charges on VAs which carrier that we've mentioned guarantees their charge on the GMWB rider will not increase for 5 years from contract issue, built and priced their product based on a 100% utilization rate, and hedge 100% of their portfolio?

Hint: it's not Transamerica, Pru, Met, Axa, Allianz, Lincoln, or Met

 

[scagnt83]

Speaking of fees and charges on VAs which carrier that we've mentioned guarantees their charge on the GMWB rider will not increase for 5 years from contract issue, built and priced their product based on a 100% utilization rate, and hedge 100% of their portfolio?

Hint: it's not Transamerica, Pru, Met, Axa, Allianz, Lincoln, or Met

Yes, his decision to go with Trans was obviously not based on who has the better product..... so what comp level is TA paying these days on their VA products???