Well, I never would have guessed that suggesting that one can make

substantial compensation in this business would elicit such ire from

colleagues. I also couldn’t have imagined that I’d be in the company of a

bunch of immature boneheads with multiple personality disorders.



As I said before, we do not have the benefit of knowing much about each

other. So I will volunteer some additional info:



I am not with a bank, I am independent. When I was with a bank, back in

1994, I learned about VAs. Not much has changed since then. If you are

at a bank, as Dewey stated, then you are expected to produce on par with

fellow producers. So if annuities are a significant part of that institution’s

business model, then you won’t keep pace (or your job) just rolling over

brokered CDs.



To see how a professional does things, read Septembers Registered Rep.

article “Are you charging enough?”



[“How he revamped his traditional brokerage practice into a wealth

management machine has a lot to do with figuring out the value of his

services. “Every deliverable we provide we first see if we can afford, so we

do the math,” he says, analyzing time and hard costs, as well as resources

needed to provide it. The minimum fee of $11,500 was calculated to

ensure he’d be able to continue his lifestyle, pay his four staff members,

as well as the taxes on the business and fund his future goals—his own

financial plan, he says. “You’d be surprised how many advisors I speak to

haven’t done this,” he says.”]



When you consider the effort, the time, the rejection and the pressure of

this career, why would you just settle for a fraction of wrap fee?



Good night, my martini is waiting.







     

[quote=skeedaddy]Well, I never would have guessed that suggesting that one can make substantial compensation in this business would elicit such ire from colleagues.      [/quote]

If that's what you took from the responses to your slam-some post, you're too ethically challenged to be helped.

[quote=skeedaddy]


I am not with a bank, I am independent. When I was with a bank, back in

1994, I learned about VAs. Not much has changed since then.




     [/quote]



I think your at a bank.  Not much has changed with the VA since
1994?  7 YEar Step up’s and fixed buckets are running rampid in
the VA world right now…yeah right.  Your an idiot.

Hey numb-nuts,



Yes you, Rightway, or whatever you call yourself today. By the way, do

your clients know that you have multiple personalities? Despite this

handicap you landed at Merrill Lynch? You’re probably a sales assistant

or a customer service associate in one of their call centers.



You should retake the 5th grade because your reading comprehension

isn’t up to par. I’m not referring to the features of VAs, but rather the

sales culture at many banks. You know, their modus operandi.   



I’ll give you a chance to find the meaning of that now. Signing off…



SKEEDADDY

You know a VA is like any other investment.  There are times whe n it's suitable and times when it's not.  To say it is never suitable is assinine.  Yes VA's are oversold because they pay high commissions but don't think they are all bad, what are you selling?  A mutual fund wrap account...  Probably charging what 1.25% + Fund fees --->  so fees are 1.75 -2-5%, hey the Integrity life VA I use has M & E of 1.0% and ETF's total 1.3-1.75%, so looking at it from a cost perspective which is cheaper? 

A VA is a risk management tool, your not comparing it with a mutual fund because the two are not the same.  One is an investment the other is a risk management tool.  Find what your client truly needs and present it with full disclosure.

I think Bankrep1 hits the nail on the head with his comments.

My personal opinion is that VA's are a compliance nightmare waiting to happen.  Add that to the fact that it is my belief that the costs don't justify the means leads me not to recommend VA's.    That is my personal choice.

It's hard to put my finger on the other reasons I steer clear from VA's.  It's just my intuition I guess.   I can't get out of my head that so much of a VA seems akin to smoke and mirrors.     If I have trouble grasping all the in's and out's of VA's how can I expect my clients to fully understand.

Happy Thanksgiving all!

scrim

Maybe you’re just slow. Just kiddin

What about a couple who both have a history of alzheimers, or any
number of other debilitating issues, who will need a steady income
dispite the fact that they will need to deplete their income to get
medicare benefits?

[quote=sethllanford]What about a couple who both have a history of alzheimers, or any number of other debilitating issues, who will need a steady income dispite the fact that they will need to deplete their income to get medicare benefits? [/quote]

If you don't have enough time to get their estate in order?  (see below)

Immediate annuity and a reverse mortgage.

Get them liquid and get them income to survive on now.  When they transfer to the extended care facility then the facility will get their income.

[quote=sethllanford]What about a couple who both have a history of alzheimers, or any number of other debilitating issues, who will need a steady income dispite the fact that they will need to deplete their income to get medicare benefits? [/quote]

You mean medicaid, I hope...Mediacre everyone gets at 65

[quote=scrim67]

I think Bankrep1 hits the nail on the head with his comments.

My personal opinion is that VA's are a compliance nightmare waiting to happen.  Add that to the fact that it is my belief that the costs don't justify the means leads me not to recommend VA's.    That is my personal choice.

It's hard to put my finger on the other reasons I steer clear from VA's.  It's just my intuition I guess.   I can't get out of my head that so much of a VA seems akin to smoke and mirrors.     If I have trouble grasping all the in's and out's of VA's how can I expect my clients to fully understand.

Happy Thanksgiving all!

scrim

[/quote]

Scrim,

There is no compliance nightmare.  Not if you use a VA for the purpose it was intended for.  Anything is a compliance nightmare if you abuse it.  Put your clients first.  VA w/ a living benefit is the only thing that can guarantee market participation with insurance protection.  I know some idiot is going to chime in and say an index annuity can, but please do some research the index is an alternative to a fixed annuity or CD. You will avg 4-6% over 5 years at best.