Annuity payouts

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Dec 3, 2007 11:26 am

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?
Dec 3, 2007 11:49 am

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.
Dec 3, 2007 1:12 pm
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.
 
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%.
 
Dec 4, 2007 12:08 am

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.

Dec 4, 2007 7:02 pm

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.