Jones is probably giving you a 2% haircut. Most 5 year fixed annuities pay a commission north of 4%. I get the whole commission paid at 100%. Fixed and Indexed annuities do not go to the grid.

Anyone else chime in?  Fixed annuities at 100%, is that common among Independent BD's?

[quote=gad12]

Anyone else chime in?  Fixed annuities at 100%, is that common among Independent BD's?

[/quote]

Why do you care? Are you going to leave EDJ to sell one fixed annuity to one client? Fixed annuities are not securities and you do not need a broker/dealer to sell them. The day after the ins. company gets the clients money, the commission gets wired to my personal checking account.

[quote=gad12]

Anyone else chime in?  Fixed annuities at 100%, is that common among Independent BD's?

[/quote]

Yes. 100% payout. No override.  As Inner Child says you don't need a B/D to sell fixed annuities.  They have nothing to do with that business.  You do need to tell them what outside business you are doing: insurance, life, health etc.

Most fixed annuities are about 4 to 6% commission.  EIAs have much higher commissions (7 to 10%).  I have done just a few EIAs in my career and my B/D frowns on those as well.  While we are at it, V/A contracts pay anywhere from 3 to 7%.  The higher payout is if you take the commission all up front and forego trails.  Most V/S contracts that I have sold are in the 3 to 4% range with annual trails of .5 to 1%.  These are all just rough estimates.

Oh .... and rates on fixed annuities

7 yr annuity 5.5%   5% commission

6 yr 6.7/3.7  if over 50K  5%commis  

5 yrs  6.6%/3.6% 4% commis

10 yr annuity with 5 yr bail out provision  4.25%  6.25 commission

All with A or better rated insurance companies. 

Thank you all for the info very informative.  No I decided long before this annuity to leave EDJ.  Obviously that would be a stupid reason unless the annuity was for a kabilillion dollars.

So does this sound right?

Client has 800k 7 yr fixed annuity due later in the year. 

If I'm a Jones IR, I can give the client 5.15% for 7yrs.  Jones haircuts to 2% then pays me 40% so I make $6,400.

If I'm Independent, I make 5%, with 100% payout so I make $40,000?????????!!!!!  Plus I can give the client a higher rate? 

This seems crazy!!!!!!  Maybe I'm missing something?

[quote=gad12]

So does this sound right?

Client has 800k 7 yr fixed annuity due later in the year. 

If I'm a Jones IR, I can give the client 5.15% for 7yrs.  Jones haircuts to 2% then pays me 40% so I make $6,400.

If I'm Independent, I make 5%, with 100% payout so I make $40,000?????????!!!!!  Plus I can give the client a higher rate? 

This seems crazy!!!!!!  Maybe I'm missing something?

[/quote]

The only thing you're missing is "the boat."

[quote=gad12]

So does this sound right?

Client has 800k 7 yr fixed annuity due later in the year. 

If I'm a Jones IR, I can give the client 5.15% for 7yrs.  Jones haircuts to 2% then pays me 40% so I make $6,400.

If I'm Independent, I make 5%, with 100% payout so I make $40,000?????????!!!!!  Plus I can give the client a higher rate? 

This seems crazy!!!!!!  Maybe I'm missing something?

Unreal. 

It should be a crime. 

Not just because they do it, but that they hide it from us and brag about the great 40% payout.

uh oh…sounds like the lights are coming on…

[quote=Indyone]uh oh…sounds like the lights are coming on…[/quote]

yup!

now wait until he has to go to the next sales meeting and listen to their bs…

Who offers the 5.5% fixed with a 5% payout?

[quote=Indyone]uh oh...sounds like the lights are coming on...[/quote]

More and more every day.  Itchin to get out of here.

Anyone w/Ray James or knows about them.  Are they also allowed to use fixed annuity providers besides the ones on their approved list?