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Apr 4, 2008 6:51 pm
"Mr Anonymous...  Why you do think I posted this thread?  I am looking for some advice.  What would you use as an alternative to EIAs if you believe they are all unsuitable?"    Heddy, Work on your reading comprehension.   You haven't seen me post one negative thing about EIA's.  I think that you are posting because you have a vested interest in the sale of a specific EIA.   I'll repeat what I say every time that the subject of EIA's come up.  EIA's are simply fixed annuities with a different crediting methods than traditional fixed annuities.  They are appropriate whenever a fixed annuity is appropriate and the client wants the opportunity to make a little bit more in exchange for taking the risk that they may make a little bit less.   I may be the exception, but I really haven't had clients say too much in this market.  I think that it may be because one promise that I make to all of my clients is a promise that I will lose money for them.  (no sarcasm intended)
Apr 4, 2008 6:55 pm

Hey heddy32 - how about you answer my questions so we can see how good this annuity you have really is?  Feel free to add any other info you might feel is pertinent.

Apr 4, 2008 7:01 pm

Spaceman Spiff.  Why do they call you spaceman?  I do not have product specs for any contract. 

Apr 4, 2008 7:07 pm

Guys it sounds to me like heddy32 is just blowin smoke, but I would definitely look into Annexus.  Leaving now its happy hour somewhere in the world

Apr 4, 2008 7:12 pm

[quote=anonymous]

"Mr Anonymous...  Why you do think I posted this thread?  I am looking for some advice.  What would you use as an alternative to EIAs if you believe they are all unsuitable?"    Heddy, Work on your reading comprehension.   You haven't seen me post one negative thing about EIA's.  I think that you are posting because you have a vested interest in the sale of a specific EIA.   I'll repeat what I say every time that the subject of EIA's come up.  EIA's are simply fixed annuities with a different crediting methods than traditional fixed annuities.  They are appropriate whenever a fixed annuity is appropriate and the client wants the opportunity to make a little bit more in exchange for taking the risk that they may make a little bit less.   I may be the exception, but I really haven't had clients say too much in this market.  I think that it may be because one promise that I make to all of my clients is a promise that I will lose money for them.  (no sarcasm intended) [/quote] I had to comment simply because in many of my conversations I tell my clients the same thing:   "Mr X, if I am doing my job correctly there will be a minority of years where we will lose some principal"   If you NEVER want a year where you lose some principal here are a few products that may be appropriate for your situation.   scrim
Apr 4, 2008 7:16 pm

Spaceman Spiff was a character from Calvin & Hobbes. 

 
Apr 4, 2008 7:19 pm

Scrim, I don’t even say “minority”.  I just straight out promise to lose money for them some years.  I then explain why we don’t care and why it is important that we have safe money also and this includes long and short term safe money.

Apr 4, 2008 7:19 pm

OK, Heddy. Do you represent this annuity?

Apr 4, 2008 7:22 pm

Everybody…  It was a pleasure conversing with all of you.  I certainly learned alot and put, what I learned, into action as I try to enhance my book of business.  A portion of baby boomers and retired individuals assets belong in EIAs unless you want to have to constantly answer to individuals when the market is making rapid swings.  Good night and God Bless.   

Apr 4, 2008 7:36 pm
heddy32:

Thanks Indyone for the great info.  I do agree that the newer contracts are much more transparent.  My only issue with annual pt. to pt. is that you do not know what your client is going to receive year to year because of the volatile options market.  Would you agree?  Ashland… Go pound sand

  I'll start by saying that if you are here promoting a specific EIA, you're wasting your time.  As others have noted, there are some suspicious elements to the two personalities that showed up nearly simultaneously and pounding the table about the same EIA that none of us have ever heard of and that I frankly don't have desire to do due diligence on.  Most of us here have about all the product we want.   That being said, Jackson has plenty of crediting methods other than point to point.  There's monthly sum and monthly average, so you can play it several wasy in the same contract if you're concerned about options volatility.  In the end, EIAs fit a very small part of my practice and therefore, if I have a vendor I'm satisfied with (and I am), it's pretty doubtful that I'll make a change without compelling evidence that another contract is better.  While the one referenced MIGHT be better, I've yet to see any compelling evidence.  If you can address the questions that have been posed, I may change my mind, but so far, your posts sound like an endorsement without answering why.  Give us proof why yours is better and perhaps you'll get a more positive response.
Apr 4, 2008 8:30 pm

OK, mm06, do you represent this annuity?

Apr 7, 2008 7:13 pm
heddy32:

Everybody…  It was a pleasure conversing with all of you.  I certainly learned alot and put, what I learned, into action as I try to enhance my book of business.  A portion of baby boomers and retired individuals assets belong in EIAs unless you want to have to constantly answer to individuals when the market is making rapid swings.  Good night and God Bless.   

  God bless? You sell piker products to clients who probably deserve better but you still have time to grace us with God's blessing?   Freaking crooks. Sell an equity linked CD if you want upside potential with no downside. You guys are a waste of oxygen.
Apr 7, 2008 10:26 pm
anabuhabkuss:

[quote=heddy32]Everybody…  It was a pleasure conversing with all of you.  I certainly learned alot and put, what I learned, into action as I try to enhance my book of business.  A portion of baby boomers and retired individuals assets belong in EIAs unless you want to have to constantly answer to individuals when the market is making rapid swings.  Good night and God Bless.   

  God bless? You sell piker products to clients who probably deserve better but you still have time to grace us with God's blessing?   Freaking crooks. Sell an equity linked CD if you want upside potential with no downside. You guys are a waste of oxygen.[/quote]   Why is an equity-linked CD better than an EIA?   Mind you, I do not sell EIAs or equity-linked CDs, I would like to know how one is better/worse than the other.  TIA.
Apr 8, 2008 7:21 pm

An equity-linked CD offers little to no liquidity... not to mention annual tax implications for your clients.

Apr 8, 2008 8:01 pm

Back again, I see.

Apr 8, 2008 8:14 pm

I had an insurance guy last year try and convince me EIAs made since and he showed me a specific one. I don’t recall which one, but it was capped at 6% in the perfect market scenario, with a 1% guaranteed minimum. On average the market is down 1 in 4 years so you should expect to make 1% in one of those years. If you make the best at 6% the other 3 your avg return is still only 4.75% (assuming no flat or imperfect market). Why would that be better than the 4.5% FIXED annuity for 5 years with only half the surrender charges that I can get today (I think it was better than 5% last year when he discussed it). I just don’t get it.



Full Discolsure: At EDJ I couldn’t have sold it if I wanted to.

Apr 8, 2008 8:49 pm

Hey Ashland how was your weekend?

Apr 8, 2008 9:20 pm

It was great, mm06, thanks for asking. Say, along with this EIA that you represent, do you have a contraption that can recycle butter?

Apr 8, 2008 9:30 pm

[quote=heddy32]

An equity-linked CD offers little to no liquidity... not to mention annual tax implications for your clients.

[/quote]   You've got a lot to learn about these...as of this post you are 0-2.
Apr 8, 2008 9:33 pm
Incredible Hulk:

I had an insurance guy last year try and convince me EIAs made since and he showed me a specific one. I don’t recall which one, but it was capped at 6% in the perfect market scenario, with a 1% guaranteed minimum. On average the market is down 1 in 4 years so you should expect to make 1% in one of those years. If you make the best at 6% the other 3 your avg return is still only 4.75% (assuming no flat or imperfect market). Why would that be better than the 4.5% FIXED annuity for 5 years with only half the surrender charges that I can get today (I think it was better than 5% last year when he discussed it). I just don’t get it.

Full Discolsure: At EDJ I couldn’t have sold it if I wanted to.

  I don't blame you for not liking that piece of crap.  Just know that it's far from representative of all EIA contracts.  That kind of high-commission, low-potential crap is why EIAs have such a bad name.  Just know that there are better contracts out there than that one...they just don't pay the advisor as well...