Athene BCA Opinions and Performance

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Anyone using this annuity for maximum accumulation? How has it performed? I don't like the 10% bonus with a .85% fee. Seems like what Athene giveth with one hand they taketh away with the other.
 
Well for the sake of being clear, that fee would also be buying you either the Death Benefit rider or income rider. You don't pay that .85% for just the bonus.

As a simple answer to your question. It's a really good product.... For the right scenario

Anyone using this annuity for maximum accumulation? How has it performed? I don't like the 10% bonus with a .85% fee. Seems like what Athene giveth with one hand they taketh away with the other.
 
Well for the sake of being clear, that fee would also be buying you either the Death Benefit rider or income rider. You don't pay that .85% for just the bonus.

As a simple answer to your question. It's a really good product.... For the right scenario

What would you consider "the right scenario'?
 
What would you consider "the right scenario'?

Well there is more than 1 but first and foremost, it has to be a client that can understand it. The BCA is a bit more involved than a lot of other FIAs available. The client needs to be able to understand that paying the 1.5% strategy makes sense compared to other product X that has no fee. The core strategy (one with no fee) was pretty dang good but there was just a rate change a couple weeks ago and I feel there are better "free" options. I believe this is an easier conversation with clients that own or have owned VAs. "Look Mr/Mrs client, right now you are paying X (2-4%) in fees. I am going to lower that fee to 1.5% and protect your principal. I would never tell you that it's unlimited on the upside but I believe that to be evened out by the limit on the downside." Clients that have a good understanding of their 401(k) are usually good too.

Potentially a great death benefit option too. 4% compounding roll up and withdraws coming out dollar for dollar. Not pro rata. People with extra Qualified money they want to pass on can take their RMDs can basically be guaranteed to maintain the principal and still have upside.

Anyway, this can get extremely long winded. I usually have these convos on the phone..... hah!
 
What has been the annual return for the BCA 12? My agent says it never earned less then 10% in any given year
 
What has been the annual return for the BCA 12? My agent says it never earned less then 10% in any given year


He's is nuts!!!! There is no way an indexed annuity averages 10% a year. Why would you want to buy anything that locks up your money for 12 years without the caps being guaranteed. Once they have your money if you want out in the next 12 years you will have to pay a penalty, but if the company decides they want to lower the rate they pay you, to bad your screwed.
 
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Why would you want to buy anything that locks up your money for 12 years without the caps being guaranteed.

I agree. Plenty of 6 and 7 year products that will perform just as well. In fact, some of the best performers on the historical lookbacks are 6 & 7 year products.

Going with a 12 year product does two things; 1- doubles the time your money is locked up. 2- doubles the agents commission. (or close to it at least)
 
What has been the annual return for the BCA 12? My agent says it never earned less then 10% in any given year

If you run some illustrations and look at the backtesting it never comes out at 10%.

I just looked at one that I placed last November and its up 5.04%. I think you can realistically expect 4-6%.

After AE lowered their rates for the choice series BCA is my fav again. They also just released a new version with a decent no fee option.

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He's is nuts!!!! There is no way an indexed annuity averages 10% a year. Why would you want to buy anything that locks up your money for 12 years without the caps being guaranteed. Once they have your money if you want out in the next 12 years you will have to pay a penalty, but if the company decides they want to lower the rate they pay you, to bad your screwed.

All index annuities work this way no matter how long the surrender charge. Are you not a fan of index annuities in general?

Athene has been very, very good on the renewal side.
 
If you run some illustrations and look at the backtesting it never comes out at 10%.

I just looked at one that I placed last November and its up 5.04%. I think you can realistically expect 4-6%.

After AE lowered their rates for the choice series BCA is my fav again. They also just released a new version with a decent no fee option.

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All index annuities work this way no matter how long the surrender charge. Are you not a fan of index annuities in general?

Athene has been very, very good on the renewal side.

Then why sell the long surrender charge?? Maybe high commissions??

I actually do not have a problem with indexed annuities and sell maybe 10 a year. My problem is not with indexed annuities by how they are sold by some brokers.
 
Then why sell the long surrender charge?? Maybe high commissions??

I actually do not have a problem with indexed annuities and sell maybe 10 a year. My problem is not with indexed annuities by how they are sold by some brokers.

Normally, you would sell a longer surrender because of better crediting options and/or more advantageous riders.

I see this largely going away next year though. Athene (not the Annexus products) has already priced their 7 year better than their 10.

That is a trend that will likely continue.
 
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