- 8,707
Tahoe Ray said:
Just check the commission that comes with it...Doesn't commission trump suitabilitity?
401k Options
- Thread starter Justin Bilyj
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Just check the commission that comes with it...Doesn't commission trump suitabilitity?
- 10,328
I have always said that Allianz does the volume they do because of their higher than average comp. Most FMOs push what makes them the most $$$$$$. Not what is best for the client.
IAs got a bad rap because so many high comp/high surrender products were sold with very little regard to suitability.
On the big bonus, big surrender products, 99% of the time I can find a much more suitable product with half the surrender. The only reason to sell the other is the comp. Plain and simple.
And FMOs that push high comp products like that give agents an excuse to sell them. And in the process it tarnishes our industry greatly.
if the person is rolling over a 401k into an annuity, are they worried about a surrender charge on the annuity?
- 11,277
Yes.
1) It's a deterrent from moving the money out of the Annuity funded IRA into another funding vehicle.
2) Depends on the age of the client and being able to access the funds for a retirement income and if they want to do anything above the free withdrawal amount.
3) Using the funds for a qualified IRS hardship withdrawal above the 10% (or less with a living benefit rider) free withdrawal.
Just a couple of reasons off the top of my head.
1) It's a deterrent from moving the money out of the Annuity funded IRA into another funding vehicle.
2) Depends on the age of the client and being able to access the funds for a retirement income and if they want to do anything above the free withdrawal amount.
3) Using the funds for a qualified IRS hardship withdrawal above the 10% (or less with a living benefit rider) free withdrawal.
Just a couple of reasons off the top of my head.
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