ING 7 year 6%

Nov 5, 2009 12:27 am

Anyone aware of this rate?  Heard from a personal banker friend of mine at Chase that they have this rate… RON??

Nov 5, 2009 12:58 am

Doesn’t exist just checked ING… unless it’s the EIA cap rate

Nov 5, 2009 8:31 am

On what a fixed annuity ? Definitely not. Maybe some kind of VA step up, but Nationwide still has the 10yr/10% I believe.

Nov 5, 2009 3:18 pm

What is the nationwide product? VA? or Fixed?

Nov 5, 2009 3:26 pm

VA. They give you 10% simple interest on your initial investment or market returns for 10 years. Than you can lock in that contract base and get 5% for life.

Nov 5, 2009 6:22 pm

But the 10% isn’t walkaway after 10 years right?

Nov 5, 2009 6:44 pm

No, only as a withdrawal base, but still pretty sweet in my opinion

Nov 5, 2009 9:30 pm
henrybar:

Anyone aware of this rate?  Heard from a personal banker friend of mine at Chase that they have this rate… RON??

    If memory serves, you can take 6% for life with their income rider if you don't take withdrawals until a certain age, I think it is 76.
Nov 5, 2009 11:14 pm

For Pru (correct me if I’m wrong), I know that they essentially withdraw from the FA/client any ability to manage the money. Can’t recall the specifics (we don’t sell Pru), but I believe they retain the right of asset allocation and can go 100% cash on their say-so … thus limiting the upside of the contract.

Nov 10, 2009 8:06 pm
LockEDJ:

For Pru (correct me if I’m wrong), I know that they essentially withdraw from the FA/client any ability to manage the money. Can’t recall the specifics (we don’t sell Pru), but I believe they retain the right of asset allocation and can go 100% cash on their say-so … thus limiting the upside of the contract.

    Actually, it was 100%, and Pru had a formula they used daily to figure it out.  However, basically,as the market was plummeting, they went to cash.  At the end of last year, they revised that rule to allow only 90% to go to bonds.  The client had to sign a form that gave the FA permission to not stay 100% in bonds.    I use Prudential some in my business.  Every VA carrier has pros and cons.  The going to bonds/cash in a declining market isn't that attractive, it doesn't allow the client to recover like a rebalanced AA would.  Also, I believe that because Pru has daily stepups, it is almost impossible for the contract value to equal the base.  While that may not be a concern NOW, it might be for your client, and certainly makes it difficult to move the contract to a new carrier if a better product is out.  For a guaranteed income base, they are one of the top companies............