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Nov 26, 2008 12:00 pm

For what it is worth…There is no need to worry about a 1035 exchange.  Per the original post there is no gain so there is no tax.  Doesn’t tell you what to do but it does tell you one less thing to have to “worry” about.

Nov 29, 2008 1:54 am

[quote=anonymous]

ColoradoRep, why would we care about their rating from over 2 years ago?  Look at the date. 

I wasn't questioning Hancock's rates, just the claim that they are the last of the AAA insurers.  They still are AAA from S&P.

1)Old information is useless.
2)Don't blindly trust wholesalers.
3)You have a responsibility to work with correct information.

With Lincoln you can slap on guarantee riders later on after the policy has a chance to grow some in value (assuming the market starts climbing upward in the next few years. You can start with minimal riders initially to keep the expenses low.

If the client follows this advice, aren't they screwed if the market goes down the next few years?

You mentioned both this and Hancock.  Does your information for these products come from wholesalers/marketing material or does it come from the actual prospectus and the contractually guaranteed annuitization rates?  If it doesn't come from the latter, do not pass go.  Do not collect $200. 


[/quote]

1) You're right of course about the ratings dates I quoted.
2) Agreed.
3) Agreed.

And, yes, the client would be "screwed" if the markets go down the next few years, rather than go up. And that should be made clear to the client before the contract is purchased, and considered in the investment choice agreed upon.
Dec 1, 2008 1:19 am
Hank Moody:

[quote=Borker Boy][quote=Hank Moody]She’s not uninsurable, though the she will be graded. If this money is to be left behind, why would she be unhappy about the current contract not having living benefits? If the money is DEFINITELY earmarked for the kids and she doesn’t want the LI, put her in the Allianz Master Dex 10. If it were me, I’d shop around for a single premium whole life policy and give her some options. 

  Before you take ol' Hank's advice, read this report: http://www.guardingyourwealth.com/SpecialReports/Allianz.htm   I don't even know who you work for, but I doubt your broker/dealer will let you sell this crap. [/quote]

I know the author. He's a very nice guy. He used to be a registered rep and it didn't work out too well for him. We've spoken on the phone several times and I gave him some tips on how to do business.

He is now a CFP and he has a financial interest in hating indexed annuities. CFP's are like democrats. They don't have useful ideas to offer, so, instead, they blast the competition to try to get clients.

I have never sold a Master Dex 10. The only time it would be right, in my mind, is when all of the money will be left behind. Before I would do that I would exhaust all other options, first. In my opinion, it is a last resort product, not a go-to product.
[/quote]   Hank, are you at all familiar with the product you are recommending?  It is a terrible solution for the situation you suggest.  The only way to EVER gain access to the funds without penalty is through some sort of annuitization.  It handcuffs the purchasor of the product, but really handcuffs the heirs.  The heirs will be given a choice of a lump sum with hefty penalties (even outside of surrender) vs. annutizing the value.  2 great options there. 
Dec 1, 2008 1:57 am
moneyguy:

[quote=Hank Moody] [quote=Borker Boy][quote=Hank Moody]She’s not uninsurable, though the she will be graded. If this money is to be left behind, why would she be unhappy about the current contract not having living benefits? If the money is DEFINITELY earmarked for the kids and she doesn’t want the LI, put her in the Allianz Master Dex 10. If it were me, I’d shop around for a single premium whole life policy and give her some options. 

  Before you take ol' Hank's advice, read this report: http://www.guardingyourwealth.com/SpecialReports/Allianz.htm   I don't even know who you work for, but I doubt your broker/dealer will let you sell this crap. [/quote]

I know the author. He's a very nice guy. He used to be a registered rep and it didn't work out too well for him. We've spoken on the phone several times and I gave him some tips on how to do business.

He is now a CFP and he has a financial interest in hating indexed annuities. CFP's are like democrats. They don't have useful ideas to offer, so, instead, they blast the competition to try to get clients.

I have never sold a Master Dex 10. The only time it would be right, in my mind, is when all of the money will be left behind. Before I would do that I would exhaust all other options, first. In my opinion, it is a last resort product, not a go-to product.
[/quote]   Hank, are you at all familiar with the product you are recommending?  It is a terrible solution for the situation you suggest.  The only way to EVER gain access to the funds without penalty is through some sort of annuitization.  It handcuffs the purchasor of the product, but really handcuffs the heirs.  The heirs will be given a choice of a lump sum with hefty penalties (even outside of surrender) vs. annutizing the value.  2 great options there.  [/quote]

I'm familiar enough to know that since the money is to be left to his heirs, that annuitization will not be an issue. Are you familiar with ALL of my posts on this thread or did you just make yourself look foolish by not gathering all of the facts before you chimed in?
Dec 1, 2008 2:20 am
Hank Moody:

[quote=moneyguy][quote=Hank Moody] [quote=Borker Boy][quote=Hank Moody]She’s not uninsurable, though the she will be graded. If this money is to be left behind, why would she be unhappy about the current contract not having living benefits? If the money is DEFINITELY earmarked for the kids and she doesn’t want the LI, put her in the Allianz Master Dex 10. If it were me, I’d shop around for a single premium whole life policy and give her some options. 

  Before you take ol' Hank's advice, read this report: http://www.guardingyourwealth.com/SpecialReports/Allianz.htm   I don't even know who you work for, but I doubt your broker/dealer will let you sell this crap. [/quote]

I know the author. He's a very nice guy. He used to be a registered rep and it didn't work out too well for him. We've spoken on the phone several times and I gave him some tips on how to do business.

He is now a CFP and he has a financial interest in hating indexed annuities. CFP's are like democrats. They don't have useful ideas to offer, so, instead, they blast the competition to try to get clients.

I have never sold a Master Dex 10. The only time it would be right, in my mind, is when all of the money will be left behind. Before I would do that I would exhaust all other options, first. In my opinion, it is a last resort product, not a go-to product.
[/quote]   Hank, are you at all familiar with the product you are recommending?  It is a terrible solution for the situation you suggest.  The only way to EVER gain access to the funds without penalty is through some sort of annuitization.  It handcuffs the purchasor of the product, but really handcuffs the heirs.  The heirs will be given a choice of a lump sum with hefty penalties (even outside of surrender) vs. annutizing the value.  2 great options there.  [/quote]

I'm familiar enough to know that since the money is to be left to his heirs, that annuitization will not be an issue. Are you familiar with ALL of my posts on this thread or did you just make yourself look foolish by not gathering all of the facts before you chimed in?
[/quote]   I'm referring to how the product works, or isn't that important?  The heirs will have to annuitize the contract, or pay significant penalties for taking a lump sum, even after surrender.  You don't find that important?  Well, let me rephrase that; you don't think the client would find that to be important?    I don't see anything in this thread that you posted that changes the facts as I see them.  I think your recommendation would be a poor choice.  I didn't expect you to agree with me, but it certainly doesn't make me a fool for disagreeing with you.   
Dec 1, 2008 3:53 am
moneyguy:

[quote=Hank Moody] [quote=moneyguy][quote=Hank Moody] [quote=Borker Boy][quote=Hank Moody]She’s not uninsurable, though the she will be graded. If this money is to be left behind, why would she be unhappy about the current contract not having living benefits? If the money is DEFINITELY earmarked for the kids and she doesn’t want the LI, put her in the Allianz Master Dex 10. If it were me, I’d shop around for a single premium whole life policy and give her some options. 

  Before you take ol' Hank's advice, read this report: http://www.guardingyourwealth.com/SpecialReports/Allianz.htm   I don't even know who you work for, but I doubt your broker/dealer will let you sell this crap. [/quote]

I know the author. He's a very nice guy. He used to be a registered rep and it didn't work out too well for him. We've spoken on the phone several times and I gave him some tips on how to do business.

He is now a CFP and he has a financial interest in hating indexed annuities. CFP's are like democrats. They don't have useful ideas to offer, so, instead, they blast the competition to try to get clients.

I have never sold a Master Dex 10. The only time it would be right, in my mind, is when all of the money will be left behind. Before I would do that I would exhaust all other options, first. In my opinion, it is a last resort product, not a go-to product.
[/quote]   Hank, are you at all familiar with the product you are recommending?  It is a terrible solution for the situation you suggest.  The only way to EVER gain access to the funds without penalty is through some sort of annuitization.  It handcuffs the purchasor of the product, but really handcuffs the heirs.  The heirs will be given a choice of a lump sum with hefty penalties (even outside of surrender) vs. annutizing the value.  2 great options there.  [/quote]

I'm familiar enough to know that since the money is to be left to his heirs, that annuitization will not be an issue. Are you familiar with ALL of my posts on this thread or did you just make yourself look foolish by not gathering all of the facts before you chimed in?
[/quote]   I'm referring to how the product works, or isn't that important?  The heirs will have to annuitize the contract, or pay significant penalties for taking a lump sum, even after surrender.  You don't find that important?  Well, let me rephrase that; you don't think the client would find that to be important?    I don't see anything in this thread that you posted that changes the facts as I see them.  I think your recommendation would be a poor choice.  I didn't expect you to agree with me, but it certainly doesn't make me a fool for disagreeing with you.   [/quote]

What part of "last resort" product do you not understand? You're lying about having to pay "significant penalties" to take a lump sum.
Dec 1, 2008 10:15 pm

At AGE we have specialists through Time. The guy I worked with was a master of underwritting. I got a guy a life policy that had COPD with a hisory of cancer in the last five years. 170K DB for $10,500 annual…they guy was 72 year old on issue date. I would have never had a prayer.

  Point?   If you have an affiliate that works with your firm like Time call them. They dont even get a comm split.
Dec 1, 2008 10:18 pm

Second thought, it was a level premium VL, if he makes it to age 105 policy vanished. That was a bet he was willing to take. I told him I hoped every penny he put into it was toal loss :) was issued through John Hancock.

Dec 2, 2008 5:34 am

The variable annuity is probably charging m and e charges usually about 1 to 2% per annum for the death benefit rider…so keeping the VA is not a good option in my opinion. This cost tranlates to $1300yr at a minimum and you are probably losing money to boot the way the market has been

  The Allianz annuity is a two tiered annuity and has limited access. If you are at the cost basis now there will be no tax to pay. Forgo the death benefit cause chances are you will live but keep the money liquid.   You can 1035 exchange this contract into a 4 yr index annuity for potential market gains without risk to principle and eliminate inside annuity charges or just deposit it into a CD at the bank if you want full access with as little penalty as possible
Dec 3, 2008 5:35 am

Maybe I am missing something in this post…but if the contract is dollar-for-dollar death benefit reduction and not pro-rata, why not do a partial withdrawal or partial 10-35 exchange and keep the death benefit intact?

Dec 3, 2008 12:45 pm

[quote=rankstocks]Maybe I am missing something in this post…but if the contract is dollar-for-dollar death benefit reduction and not pro-rata, why not do a partial withdrawal or partial 10-35 exchange and keep the death benefit intact?[/quote]

THere is no good reason. If you don’t switch, the death benefit won’t increase until the market value grows beyond the current DB. If you switch, the DB grows right away.

Dec 3, 2008 2:01 pm

Made a mistake in one of the earlier posts…

  Contract is pro-rata, not dollar-for-dollar
Dec 6, 2008 9:44 pm
Hank Moody:

[quote=moneyguy][quote=Hank Moody] [quote=moneyguy][quote=Hank Moody] [quote=Borker Boy][quote=Hank Moody]She’s not uninsurable, though the she will be graded. If this money is to be left behind, why would she be unhappy about the current contract not having living benefits? If the money is DEFINITELY earmarked for the kids and she doesn’t want the LI, put her in the Allianz Master Dex 10. If it were me, I’d shop around for a single premium whole life policy and give her some options. 

  Before you take ol' Hank's advice, read this report: http://www.guardingyourwealth.com/SpecialReports/Allianz.htm   I don't even know who you work for, but I doubt your broker/dealer will let you sell this crap. [/quote]

I know the author. He's a very nice guy. He used to be a registered rep and it didn't work out too well for him. We've spoken on the phone several times and I gave him some tips on how to do business.

He is now a CFP and he has a financial interest in hating indexed annuities. CFP's are like democrats. They don't have useful ideas to offer, so, instead, they blast the competition to try to get clients.

I have never sold a Master Dex 10. The only time it would be right, in my mind, is when all of the money will be left behind. Before I would do that I would exhaust all other options, first. In my opinion, it is a last resort product, not a go-to product.
[/quote]   Hank, are you at all familiar with the product you are recommending?  It is a terrible solution for the situation you suggest.  The only way to EVER gain access to the funds without penalty is through some sort of annuitization.  It handcuffs the purchasor of the product, but really handcuffs the heirs.  The heirs will be given a choice of a lump sum with hefty penalties (even outside of surrender) vs. annutizing the value.  2 great options there.  [/quote]

I'm familiar enough to know that since the money is to be left to his heirs, that annuitization will not be an issue. Are you familiar with ALL of my posts on this thread or did you just make yourself look foolish by not gathering all of the facts before you chimed in?
[/quote]   I'm referring to how the product works, or isn't that important?  The heirs will have to annuitize the contract, or pay significant penalties for taking a lump sum, even after surrender.  You don't find that important?  Well, let me rephrase that; you don't think the client would find that to be important?    I don't see anything in this thread that you posted that changes the facts as I see them.  I think your recommendation would be a poor choice.  I didn't expect you to agree with me, but it certainly doesn't make me a fool for disagreeing with you.   [/quote]

What part of "last resort" product do you not understand? You're lying about having to pay "significant penalties" to take a lump sum.
[/quote]   Yes, last resort, the step right before outright burning of the money.  Are you recommending it or not?   Masterdex is miserable.  It is a terrible for most scenarios, but most especially wealth transfer.    Lying?  You have no clue how this works, that is certainly clear.  Heirs will who take a lump sum forgo the bonus and ALL index credits.  Mistakes happen, be a man and own up to not knowing what you are talking about instead of slinging shit.  I hope you spend more time on your own clients recommendations, for their sake.  You are paid to know these things.