Pac Life

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Sep 14, 2009 2:50 pm

Jones just signed an agreement with Pac Life to carry them as a preferred vendor.  Any opinions on Pac Life?  I have heard of several indies on this site that use them, so I was just curious.

Sep 14, 2009 4:22 pm

I like Pac Life as a company, but their Asset Allocation Models that you have to use in their VA have had really crappy performance.

Sep 14, 2009 4:59 pm

I was referring more to life insurance.  But good info.  Thanks.

Sep 14, 2009 9:55 pm
Mike Damone:

I like Pac Life as a company, but their Asset Allocation Models that you have to use in their VA have had really crappy performance.



They have a lot of options for their investments inside their VAs beyond their own Portfolio Optimization.  This might not have been the case 3+yrs ago but it is the case now.

As of July 31:

Portfolio Optimization Model E (100% equities) AFTER M&E and Fund expenses
YTD:  16.4%
3yr:  -7.09%
5yr:  .74%

S&P 500 with NO expenses
YTD:  12.88%
3yr:  -6.13%
5yr:  .09%

Consider as well that included in those returns are 1.15% M&E and a fund expense of .88%.

I'd say Pac's multi-family asset allocation approach has been extremely solid.

Sep 14, 2009 10:16 pm

The cost of their income rider is pretty high (1.25%) and it is only a 5% roll up.

Sep 17, 2009 9:08 pm

5% simple not compounded. But I like them. They did not reach for 7%- everyone that did is now backing off looking foolish. They have good service, and most importantly: PAST PERF IS NO BLAH BLAH BLAH. I don't sell on performance since there is NO WAY to know who will win next year etc. etc etc

Sep 18, 2009 1:16 am

Riders going up quite a bit. Total expense well exceed 3% - closer to 4% effective october 1