Fixed Annuities

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Jan 26, 2006 9:07 pm

Can anyone recommend a good fixed annuity product?  Or, how about a good alternative to fixed annuities? 

Jan 26, 2006 9:08 pm
Gorden Gekko:

Can anyone recommend a good fixed annuity product?  Or, how about a good alternative to fixed annuities? 


How much of a commission would you like to earn?

Jan 26, 2006 9:12 pm
Dirk Diggler:
Gorden Gekko:

Can anyone recommend a good fixed annuity product?  Or, how about a good alternative to fixed annuities? 


How much of a commission would you like to earn?



Wow.... I'm shocked that you would ask that...  Way to put YTB first.  See ya next year, when you're selling cars.

Jan 26, 2006 9:13 pm
Gorden Gekko:

Can anyone recommend a good fixed annuity product?  Or, how about a good alternative to fixed annuities? 


How about Bonds?

Jan 26, 2006 9:22 pm

Bonds?  Depends upon the maturity.  Might be a good way to lock in loss.


Jan 26, 2006 9:24 pm
Philo Kvetch:

Bonds?  Depends upon the maturity.  Might be a good way to lock in loss.



How do you figure?

Jan 26, 2006 10:38 pm

I'm frustrated by this problem right now...I can't find a fixed annuity that is paying anything (at least in the rate-for-term variety) and I am hesitant to sell a traditional fixed annuity when the floors are so low (many are 1.5% in my market).  Maybe you could consider short-term CDs (1-3 years) with a GMAC kicker (but keep it 3 years of less), an income fund (Franklin income or CIB) with an emerging markets fund kicker, or just go to a VA product with a nice minimum income/death benefit guarantee (such as ING).  Maybe the time is coming around for floating-rate funds to perform at least relatively well again? Or perhaps someone has a good high-dividend closed-end fund that is not trading at a ridiculous premium?


I'm staying away from high-yield funds and REITS right now...thinking they may have run their course...


Anyone else?  This thread should have been named "The Search for Income"...

Jan 26, 2006 10:43 pm

If they don't need income, do an EIA.

Jan 26, 2006 10:45 pm

This will probably sound macabre, but I've bought some really long bonds/CDs with higher yields for my really old or sickly clients (i.e., those with life expectancies of 2 years or less), as long as they had death puts.  I do not concentrate more than 10% with on issuer, and I do not solely buy long bonds for these clients (in case they live longer than expected), but this is one way to create a yield kicker for those that are terminal or, say, 95 or older...

Jan 26, 2006 10:56 pm

AIG has a 5 year contract paying 7.50% first year, and 3.25% base rate for years 2-5.  That's on $100,000 or more, less than $100,000 first year is 6.50%.


Ohio National is paying 7.70% on $50,000 plus, but I think the base rate is 3%, and it might actually be a 6 year product.


Jan 27, 2006 12:29 am

Great BankFC,


    Go sell some more Bait-and-Switch annuities.  You will be going strait south when you die for all the wealth you destroyed and the fees you robbed from unsuspecting elderly clients.


Gekko, If you're 7 Licensed, try a leveraged close-ended fund if you think rates will remain flat.  ACG income fund (ACM) taxable or Nuveen Muni Advantage (6.1%) tax-free.

Jan 27, 2006 10:49 am

If you need a fixed annuity, and it is appropriate.....RBC has a nice 6 yr annuity 5% for 3 yrs and 3% floor for the rest. Haven't check the rates for a couple of weeks, so I think that is still the rate.  They are an A rated company.  Used to be BMA years ago.  I have done business with them for over 10 years and am very happy with their back office services.


I also use a good amount of closed end funds to give a kick up to current income.  Transamerica Income Shares have a 7.6 taxable yield. Maybe a really short term GMAC or Ford note for those clients who can stand the heat. 


Like Indyone, for some clients the Death Put is a consideration.  The clients like the idea, because realistically at 80 to 85 they know how much longer they have.  I know.... morbid.

Jan 27, 2006 1:54 pm

YouCan,


Hey retard, he asked a question about fixed annuity rates and I answered.


You know nothing about me or my practice.  You sell another closed end IPO and watch your clients lose more money.


BL,


I have a couple high end clients (developers) who need semi liquidity and yield, and I did buy some 6 month GMAC, as well as quite a few others.  Great yield.

Jan 27, 2006 1:57 pm

You can,


By the way you uneducated horse's arse, fixed annuities don't have fees like VA's, only surrender charges (so does a CD). 

Jan 27, 2006 2:50 pm

I have a couple high end clients (developers) who need semi liquidity and yield, and I did buy some 6 month GMAC, as well as quite a few others.  Great yield.


Me too.  Contractors and paving contractors 6 months to 1 year bonds.  I wouldn't be comfortable with GMAC paper of any length at this time however.