Who Has Up To 10% Commission ?

[insuranceexec]

10% Commission Anico Value Lock 10? ROP rider? All I know if we are making 10% comp., make sure your E&O is up to date. Big Comp= Crap product for the client.

That is just my take on it. If you have a BD, forget about it.

That is a pretty bold statement.

Can you provide any statistical data to back that up? Or, is this just your opinion?

 

[dgoldenz]

10% Commission Anico Value Lock 10? ROP rider? All I know if we are making 10% comp., make sure your E&O is up to date. Big Comp= Crap product for the client.

That is just my take on it. If you have a BD, forget about it.

An advisor charging a 1% fee over 10 years would end up at 10% anyway. Some (many?) advisors charge more than that.

 

[BNTRS]

An advisor charging a 1% fee over 10 years would end up at 10% anyway. Some (many?) advisors charge more than that.

Huh? Is this how agents are justifying indexed annuity commissions?

 

[padthaiforlunch]

Huh? Is this how agents are justifying indexed annuity commissions?

I see no need to justify the commissions I earn. The point being made is that some non-commission people who work on fees like to make an ethically-challenged wedge of the fact they don't take commission, as if that makes them less impartial and more aligned with the clients best interest.

 

[dgoldenz]

I see no need to justify the commissions I earn. The point being made is that some non-commission people who work on fees like to make an ethically-challenged wedge of the fact they don't take commission, as if that makes them less impartial and more aligned with the clients best interest.

^This

Financial advisors love to rip on annuities because they pay a commission. These are the same people who charge percentage fees to maintain a portfolio. Of course, they still charge you a fee even when they lose your money. What's the difference?

 

[pcwest]

There are only 4 parts to fixed or index annuities.
1. The Insurance Carrier
2. The NMO
3. The Agent
4. The Client

Paying a 10% comp. is like a 10% bonus product.
Lower min. guarantees
Lower renewal caps
Huge surrender charges
Not 10/10 compliant

You can always check out Jack Marrion's books or website. This info. has been around forever. We wholesale for over 50 carriers and I can tell you that Producers Choice does not promote those products. Be careful and be informed.

 

[NPCOACH]

Financial Advisors and Mutual Funds

Many advisors that charge "management fees" charge them every year whether the account grows or shrinks. Mutual funds are the same way.

Annuity surrender charges decline and eventually disappear over time. If you just let the funds accumulate (as many do) you may not pay any surrender fees ever. Many annuities waive surrender charges at the death of the client. I am not aware of any advisors or mutual funds that refund their fees at death.

Most annuities allow access to at least 10% of your account free from charges. This works well for clients that are withdrawing interest only or merely taking RMDs. Again, not aware of any mutual funds or advisors that let you waive fees on 10% of your account.

Hard to argue that under the right circumstances our commissions or fees are excessive.

 

[bpenn9]

What r decent street commission levels for annuity products?

 

[djs]

Re: Financial Advisors and Mutual Funds

Many advisors that charge "management fees" charge them every year whether the account grows or shrinks. Mutual funds are the same way.

Annuity surrender charges decline and eventually disappear over time. If you just let the funds accumulate (as many do) you may not pay any surrender fees ever. Many annuities waive surrender charges at the death of the client. I am not aware of any advisors or mutual funds that refund their fees at death.

Most annuities allow access to at least 10% of your account free from charges. This works well for clients that are withdrawing interest only or merely taking RMDs. Again, not aware of any mutual funds or advisors that let you waive fees on 10% of your account.

Hard to argue that under the right circumstances our commissions or fees are excessive.

Wow, almost total B.S. But it sounds good.
Let me take issue with just one point, but you'll see that the rest isn't correct either.....

You assume that all mutual funds have advisor management fees (not true, but we'll give you this for now). If you do pay this fee, then you do not usually pay any buy or sell fees. You can then take 10% out of the fund and pay less management fee. There would be no 'waiving' of the fee, it just doesn't exist.

I know these kind of posts are designed to make annuities sound great. The thing is, annuities are a great investment for the right thing. It's this type of selling that gives annuities a black eye in a lot of peoples opinion. Why not sell on the merits of an annuity, rather than some inaccurate, half-baked managers talking point sales cheat sheet?

Dan

 

[NPCOACH]

Dan, next time I will draw pictures for you. I do not believe anything I wrote is "BS" or inaccurate. I am unaware of any mutual fund that has zero management fees or investment charges contained within them. If you know of them, please list them.

Additionally, many money managers charge fees. I would think you would know that. Further, I don't know of any mutual funds that exempt 10% of your account from these charges- do you?

I think I referenced several advantages of annuities - none of which were exagerated or incorrect. The discussion was limited to costs of annuities - not tax deferred accumulation, safety, fair rate of return or any of the other annuity features. That is why I did not discuss other annuity benefits.

I'm not sure how that gives our business a black eye. However, your response gives Hooked on Phonics a black eye.