Typicall Comissions ?
- Thread starter Ksutton
- Start date
- 16,877
Depends on the type of annuity and the length of the annuity. Can be as low as 1.5% or up to around 8%. Also depends if you want the annuity commission paid entirely up front or over time.
For 10-year indexes figure around 6.5% to be around average.
- 29,467
MYG"S (Multi Year Guarantee) pay up to 2.75% (highest I've seen).
What they said. Age, product, contract length/surrender period all factor in....and my guess is that will all change come April. My guess is up front % will drop substantially, and we'll get a small % annually after that.
I wonder what carriers will end up dropping out of the annuity business all together....
I wonder what carriers will end up dropping out of the annuity business all together....
- 143
How would the fiduciary ruling affect up front commissions?
Well we don't know for sure, yet. But considering the whole thing is about "us" as agents being "so evil because we get paid a decent commission" ... its likely to change.
Instead of bigger 5-6-7% commission up front (which according to our govt we are obviously screwing our clients with that) the companies are likely to pay us a lower up front (couple percent) and a trail. I don't know this for sure, but I've heard carriers are building products with that type of commission structure. We'll find out soon I'm sure. April is coming fast.
- 2,038
Interesting, considering it's not even deducted from their account, like funds or securities.
Commissioned insurance and financial advisors are evil, how dare us make money selling anything to someone. But its ok for congressmen/women to make millions of dollars on the backs of hard working Americans through lobbyists and backroom deals, over and above their nice 6 figure incomes and cushy benefits.
Anything the gov't tries to run and control is destined for disaster. Just look at healthcare. Ok, rant over.
- 11,266
The fiduciary ruling is comparing all savings/investments with each other. Since the current 'fiduciary' standard is ongoing fees with advice, everything gets compared to that. And if there's any increase of compensation over that standard, that's considered a 'conflict of interest' because you would only sell that product "for the commissions".
What we may see, is a level compensation of annuities. There are some companies developing "RIA friendly" annuities. But the days of 8-9-10% or more on annuity sales... they're gone.
The difference of all this is the 'money manager' vs 'financial solutions'. A financial solution can and should have an upfront compensation, because they are products designed to do a certain thing. A commission is appropriate, because you're selling a product.
Money managers are supposed to offer ongoing financial advice and keep people invested in the market.
These are two different disciplines that many advisors combine successfully.
That seems,naive. Where do,you think,any,commission comes from if not the client?
