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Discussion on Equity Index Annuity the best ? within the Annuities Forum, part of the Insurance Agents and Brokers Forum category.
Hello everyone. I am working witha marketing company that is pushing for the associates to REALLY offer the EIA as ... |
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Views: 1152 - Replies: 79
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09-08-2008, 11:08 AM
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#3
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Expert
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Quote:
Originally Posted by Obamamama
Gotta hate those Manger fees!
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creche inflation? 
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09-08-2008, 06:28 PM
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#4
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Super Genius
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Re: Equity Index Annuity the best??????????
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Annuities have their place.
1. EIA are Fixed and have guarantees not associated with Mutual funds
2. Annuities are good for the "Safe Money" part of their asset allocation.
3. Annuities are good almost only for Long Term commitments. (Retirement)
4. Annuities are usually not very liquid (10%free Withdrawl) and steep early surrender charges.
5. The EIA is awesom for Retirement Money with a long term horizon.
Hope this helps.
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"Today, a nickel aint even worth a dime" Yogie Berra
"I'll gladly pay you wednesday for an Insurance policy today"
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09-08-2008, 07:22 PM
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#5
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Super Genius
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Re: Equity Index Annuity the best??????????
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Quote:
Originally Posted by psrayburn
Annuities have their place.
1. EIA are Fixed and have guarantees not associated with Mutual funds
2. Annuities are good for the "Safe Money" part of their asset allocation.
3. Annuities are good almost only for Long Term commitments. (Retirement)
4. Annuities are usually not very liquid (10%free Withdrawl) and steep early surrender charges.
5. The EIA is awesom for Retirement Money with a long term horizon.
Hope this helps.
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I respect your opinion, but I prefer Fixed Indexed Annuities over EIAs. Anyway, I am not arguing, but just discussing below.
Your point #3: Actually, there are excellent SPIAs that offer immediate income.
Your point #4: Saying FIAs are not very liquid is really a moot point if the agent is responsible. However, there are good and not-so-good Surrender charges for early withdrawal. Early withdrawal is never a deal-breaker for me, because clients usually commit for long-term and do not solely invest in annuities. Therefore they have other monies for living, emergencies, etc.
Lastly, why have an EIA when you can invest in a mutual fund with higher risk money and with lower fees? Clients invest in FIAs as a portion of their total investment portfolio. That portion or percentage would be the conservative portion.
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Mark D. Graham / Brokers Alliance, Inc.
Mark Email | Brokers Alliance Business Blog
Tel: 1.800.290.7226 x-120
Forethought Income 125 Annuity: 25% Bonus. 10% Commission. 1% Bonus on first annuity submitted by March '09. Get appointed now for launch and to be ready when your State approves it. Call or email.
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10-06-2008, 02:43 AM
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#8
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New Member
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Re: Equity Index Annuity the best??????????
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Quote:
Originally Posted by JMO Fan
Hope y'all are ready for Rule 151A. Got your Series 6? Register early. 
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What is the status of this? I can't imagine that it will really happen, and that if it does, insurance companies will just introduce products that fall outside of 151A's definition.
Thoughts?
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10-10-2008, 06:58 PM
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#11
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Guru
Join Date: Jul 2008
State:
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Re: Equity Index Annuity the best ?
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Safe, guaranteed and boring sounds pretty good right now 
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10-11-2008, 11:43 PM
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#13
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Guru
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Re: Equity Index Annuity the best ?
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The first thing we must begin to understand is this
In investing You must time the market.
EIA allow you to do that in a fashion
By locking in gains during good times and the totally avoiding the bad times and losing nothing.
Its the best of both worlds
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"To solve today's pervasive challenges we must think beyond dogma and rid ourselves of ideology."
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10-12-2008, 05:36 PM
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#14
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Guru
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Re: Equity Index Annuity the best??????????
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Quote:
Originally Posted by Third Joker
What is the status of this? I can't imagine that it will really happen, and that if it does, insurance companies will just introduce products that fall outside of 151A's definition.
Thoughts?
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I would not get a series 6 just to sell EIA's although I could get one easily having had a 7 before. A lot of the independent guys here think that it is just a matter of picking up a series 6. It is more than that, much more. The broker dealer assumes oversight responsibility for all of you products, even products they dont offer such as health insurance, final expense, med supp etc. They have to review and approve everything you do in those areas as well and it will cramp your style bigtime. If you dont have a stomach for CMS, then dont even think of getting a securities license, or you will get far more oversight and regulation than you ever dreamed of.
It can make sense if you are truly doing a fair amount of securities business but dont think of it as just getting appointed with another company for another product as in the insurance/annuity world. It is not like that at all.
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Condoleezza Rice - The last real man left in the Republican Party
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10-12-2008, 06:11 PM
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#16
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Guru
Join Date: Jul 2008
State:
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Re: Equity Index Annuity the best ?
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I sell FIA's, but for the Bonus component, not the Indexes. 90pct of my FIA clients start in the fixed interest account and stay there year after year. I meet with them every year and explain the Index strategies, and they stay in the fixed side, even with the boring rates. If Indexed products go to the BD's, I don't know that I care as long as the companies keep a Bonus product with a fixed account.
BTW, I have my 6, 63 & 65, and don't use them. I have about 18 months to place them with a BD or I lose them. I hope it doesn't matter, but if it does I am sure the insurance company will find one to put me with if they want my business.
...I agree with your perspective Charpress. For my particular niche, the index is not a big deal and would be easy to sell against. Give me a 10% bonus to work with and a decent interest rate, and I will be happy.
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Chuck
Last edited by patch36 : 10-13-2008 at 12:15 AM.
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10-12-2008, 06:56 PM
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#17
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Expert
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Re: Equity Index Annuity the best ?
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Quote:
Originally Posted by patch36
I sell FIA's, but for the Bonus component, not the Indexes. 90pct of my clients start in the fixed interest account and stay there year after year. I | | | | | | | | | | | |