Ideas Needed
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I'm not arguing, but why is a VA with a GMAB out of the question for this guy? The worst case scenario is a 0% return. The best case scenario is double digit returns.A VA is out of the question for this guy.
What I don’t get is, if 2/3rds of the account is in an EIA, what is the problem with putting the other 1/3rd in it?
[quote=etj4588]Client is rolling $300K into his IRA from 401k plan.
Guy wants safety and growth (who doesn't?). We are ready to go with $200K into an EIA but need ideas for the rest. I've shown him ST bond funds and he's not crazy about it because of principal fluctuation. CDs pay zilch. MM even less. Thinking maybe a shorter term corporate? Ideas appreciated.[/quote] I don't see a concern for liquidity in OP's post. Besides, most EIAs will allow 10% (or more) penalty-free. IRAs have a lack of liquidity until age 59 1/2. Does that make QP contributions unsuitable? Keep digging. You'll hit something eventually.anon- your view of the V A that the “cash will go up” makes it seem he has all this “walk-away money”. He does not and it could really bite you. Variable is variable is Variable and this is not a Variable kinda guy based onn iinfo provided.
Lock- my complaint was based on what i heard ALOT of at Jones. I did NOT use hypos- most others did. My problem is your language: “any hypo will show he WILL…” . No- you cannot go forward with a hypo only backward. The only way i know of to use a hypo “correctly” is to explain over and over again how irrelevent it is moving forward!
That is because he does have all of this walk-away money. If it's a 10 year GMAB, he has all of this walk-away money in 10 years. If it's not money that is needed until then, that can be fine.anon- your view of the V A that the “cash will go up” makes it seem he has all this “walk-away money”. He does not and it could really bite you. Variable is variable is Variable and this is not a Variable kinda guy based onn iinfo provided.
So after 10 years, he has a Benefit Base from the GMAB that is way above what the actual market returns are, and he can take that entire Benefit Base as cash all at once and put it in the bank (surrender contract for the Benefit Base Amount)?
Coolio. In fact, I literally make that part of my presentation. While looking backward, I walk forward into a wall.Lock- my complaint was based on what i heard ALOT of at Jones. I did NOT use hypos- most others did. My problem is your language: “any hypo will show he WILL…” . No- you cannot go forward with a hypo only backward. The only way i know of to use a hypo “correctly” is to explain over and over again how irrelevent it is moving forward!
[quote=SometimesNowhere] Contact your compliance officer and start writing your complaint rebuttal.
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funny
[quote=dividend_and_conquer]
2nd the equity linked CD option. High quality principal protected note is another option.
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WTF is this witch hazel bullshti?
“high quality principal protected note” WTF
dont sell this crap to your peeps.
THERE IS NO FREE LUNCH IN THIS BUSINESS.
You want a great rule in this biz?
If we get our hands on something and it takes more then a page to explain it, your client WILL get screwed. (the grand daddy of them all? CDO’s we ALMOST destroyed the free world)