Been getting mixed reponses. So wondering from an investors perspective on investing in annuities, which way would be the smartest intially, going with a captive or non-captive annuity agent?
I've been reserching some of the benefits of each but always willing to learn from someone with more experience than myself. Can you educate me more on some of the associated pros and cons of each?
Ok here is the deal from my perspective...
To answer your initial post, captive or indy really depends on what you know about the products and if you are already seasoned into sales. Captives will give you more but they ask alot in return, Independent you will have to know on your own and depending on what you are doing, it is pretty easy to get in over your head if new. As for the two options, retail offers better chance for larger dollar amount rollovers but you will have to really seek these people out. You can do well in this arena using an annuity as an IRA or even Roth for a compliment (people will vary on the approach regarding this). Inside the 403(b) platform you will have a semi captive audience and more participation "fall in your lap". THese are by no means "lay downs" but you have an in so to speak. The downside is that you have at minimum 3 gatekeepers barring your entry to the school system and schools are becoming increasingly harder to get access to. This model really depends who you are with and if they have a billing slot with the district as this is a payrol deducted benefit. You will find more captives in this arena for securities products (Variable Annuity). Valic, Met, ILIAC, are big players here. On the fixed side, you will find greater opportunity in indy. LSW, Great American, ReliaStar, to name a few. Also, remember that if a client moves professions, while technically portable, you cannot simply change money is sent from. Transfers are rarer these days and usually a new account is in order and then you may have surrender penalties preventing a rollover. I think I just made that more confusing than it really is, but words fail me currently.
Hope that helps!
What state are you in? Some are more friendly with this sort of thing than others, so that may come into play
