Annuity payouts
A question for the independents among us: What is your payout on annuity products?
I know that most independents are paid at some number, 90% for example, across the board. Does this also apply to annuity production?BG - Yes, my payout is 92% (now 92%) on VA’s and as near as I can tell, there’s no haircut prior to the payout.
Raymond James is a different story, as they cut payouts on VA's for their indies and lost a significant number of producers over it.[quote=Indyone]BG - Yes, my payout is 92% (now 92%) on VA’s and as near as I can tell, there’s no haircut prior to the payout.
Raymond James is a different story, as they cut payouts on VA's for their indies and lost a significant number of producers over it.[/quote] Actually the payout is the same, but they reduced the gross from the insurance company. I am 99% sure that RJ receives less because they made the insurance companies reduce the expense ratios, which lowered the gross commish. C shares pay out 1.5% gross up front, then 90% of that is net, minus a ticket charge of around $30-35 I think. Trail of 1% in year 2 and after, paout 90%.That’s what I meant without saying it. Either way, they took money out of the advisor’s pocket and it pissed a lot of people off. I also had a wholesaler tell me that RayJay did NOT pass all the savings to the customer.
I don’t know enough about it to say, if so I don’t like it anymore than what Jones does. Fortunately I am only using C shares or advisory fee accounts for annuities so payout is not a factor.
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