Replacing Annuity Through Edward Jones

[walleyeb1]

Working with a client that has a pacific life annuity that she purchased through Edward Jones. She is looking to replace it but it shows Edward D Jones & Co Custodian as the Owner and lists her as the annuitant.

What hoops am I going to have to jump through to replace it since Edward D Jones & Co Custodian is listed as the Owner.

 

[hammerken]

It sounds like it is in an IRA. She is most likely the owner.

 

[Larry Tew]

It is being held in an Edward Jones house account. whether it's an IRA or non-qualified won't matter. The client can still move it if she wishes but however it's moved (IRA transfer, 1035 exchange, etc) Edjones will be the ones to direct paperwork to instead of Pac Life.

 

[Newby]

It is being held in an Edward Jones house account. whether it's an IRA or non-qualified won't matter. The client can still move it if she wishes but however it's moved (IRA transfer, 1035 exchange, etc) Edjones will be the ones to direct paperwork to instead of Pac Life.

I did one with Edward Jones recently and the EJ agent would NOT sign off on it. He drove by her home and cold door knocked her 3-different times and wore her down. He was trying to convince her that a Variable Annuity was just like the indexed annuity she was buying from me. She finally got frustrated and let him keep it. She didn't want to fight him any more. I'm still pissed that he got away with that.

 

[Larry Tew]

I did one with Edward Jones recently and the EJ agent would NOT sign off on it. He drove by her home and cold door knocked her 3-different times and wore her down. He was trying to convince her that a Variable Annuity was just like the indexed annuity she was buying from me. She finally got frustrated and let him keep it. She didn't want to fight him any more. I'm still pissed that he got away with that.

They promote the house account as being a value-added, but I think it's more about control. If the client is convinced that a move is the right thing to do, all they have to say to the EJ guy (just like they might say to us if the roles were reversed) is "Unless you can show me BASED ON FACT, NOT OPINION, that I'm making a mistake... PROCESS MY REQUEST OR I WILL FILE A COMPLAINT TO YOUR COMPLIANCE DEPARTMENT."

The problem is when an agent fails to coach the client through the process or hasn't presented the case for replacement in a truthful factual compelling manner.

 

[Newby]

They promote the house account as being a value-added, but I think it's more about control. If the client is convinced that a move is the right thing to do, all they have to say to the EJ guy (just like they might say to us if the roled were reversed) is "Unless you can show me BASED ON FACT, NOT OPINION, that I'm making a mistake... PROCESS MY REQUEST OR I WILL FILE A COMPLAINT TO YOUR COMPLIANCE DEPARTMENT."

The problem is when an agent fails to coach the client through the process or haven't presented the case for replacement in a truthful factual compelling manner.

Yes. My guard was down on this one because she actually called in to me. She was a current FE client and called me and had a lot of money IN the market and definitely wanted to roll this smaller but pretty substantial amount OUT of the market.

I didn't foresee ANY problem because she was very set on getting it out of the market and wanted to do business with me. The guy literally shelved the paperwork for weeks and kept calling her and getting no where. Then door knocked her and wasn't successful until the 2nd attempt at that.

She caved and is basically convinced that a variable annuity and fixed indexed annuity are the exact same thing.

If I would have been more proactive (like you just said) it would have gone much better.

 

[sman]

I recently moved a woman out of EJ. She had an IRA with American Funds. Instead setting up a brokerage account for one fund family, I simply completed new account forms with American Funds, had the account transferred out of the EJ brokerage account back to American Funds directly and that made me the broker of record.

I forget what the EJ annual fee was, but $10 at American Funds was cheaper. I agree with Larry, the EJ brokerage account is more about control than anything else in my opinion. And Larry's advice on how to get the EJ rep to sign off on the paperwork WILL work.

 

[SWM]

I have walked clients into other brokerage offices to complete the transactions. I do not have time to play childish games with other brokers. I make it painfully obvious to the client that it is their money and what they say is law.

 

[hammerken]

I am an ex PL wholesaler. If you submit an LOA along with the 1035/IRA transfer paperwork to PL they will often release it. I worked the wirehouses and this kind of stuff was common.

 

[Newby]

I am an ex PL wholesaler. If you submit an LOA along with the 1035/IRA transfer paperwork to PL they will often release it. I worked the wirehouses and this kind of stuff was common.

What is an LOA?

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