So what are you buying these days?
63 RepliesJump to last post
[quote=Indyone]The biggest difference is the fixed rate of return. You can tell clients and prospects that (1) not only is your principal guaranteed, (2) so is the interest rate. Sure, EIAs may well do better than FAs, but there’s that element of uncertainty that many CD buyers do not want. American National and Allstate will pay 4.25% for 5 years, which beast the pants off CDs. AmNat pays 4.9% for six years. Not bad for some certainty in these times…
For myself, I'm considering an investment in the double-V fund...vodka and Vicodin...ahhh...good times...[/quote] One of the FIA I use has it's fixed bucket at 4%. And they can change the crediting method every year instead of being locked in at 4.25% for 5 years. Not that there's anything wrong with that, I just wouldn't do it with my own money. I guess I'm in the double-S fund...Stella and Strippers.The rates are so low though. You can get pretty close to the fixed rates in some index annuities. Or you could take the chance with index-linked interest. I just don't see the benefit of doing a fixed annuity over an index annuity, even if most of it was in the fixed bucket of that.[/quote] 4% guaranteed for 5 years, no mva, 100% money back guarantee with no fees isn't too shabby.[quote=Gaddock]Im thinking that fixed annuities are starting to look good for those close to or over 59 1/2. Pretty much a long term tax deffered CD.
4% in an EIA isn’t bad at all…it’s just all in what the client wants I guess…CD shoppers want the best FIXED rate so that usually means FAs or CDs unless guarantees aren’t that important.
Isn't that what got all those Sanford clients in trouble?4% in an EIA isn’t bad at all…it’s just all in what the client wants I guess…CD shoppers want the best FIXED rate so that usually means FAs or CDs unless guarantees aren’t that important.
Pac Life has a fixed annuity, 5 years paying 4.10. Better than you’d do with a cd. When Wachovia was about to go belly up they ran some pretty awesome cd specials. Those funds are coming due here soon so the fixed annuity looks like a good deal.
Gordy, You'd lock into a 5 year surrender for 4%? Why not a corp bond or even muni?
[quote=BondGuy]
Lots and lots of munis. Like the line about Volvos, they're boring but they're good. Been hitting some good yields on all sorts of stuff. There is a lot of good PR bonds out there floating around. The Muni rally hasn't trickled down as much to the single A /BBB paper, still seeing out of whack yields. We're seeing some great CDs as our desk busts up large blocks bought from corporate holders who are looking to cash out or mitigate risk. Good credits in them too! GE preferreds trading like they've already lost the AAA. Is that an opportunity? I haven't bought any lately but who knows? Over in mutual fund land ORNAX is cutting its div. Still the highest div in the land and the fund is positve for the year. As are the other Rochester muni funds. Opco PA is raising it's ridiculously high div. EV national fund is maikng a nice come back, helped buy its higher quality portfolio. [/quote] By GE Preferreds do you mean the $25 par bonds...I bought some for a client the other day...was a 6.25 coupon trading at around $19....about a 7% YTM for AAA bond...geez ....who needs equities ;)Why not munis - it’s ira money
Why not corp - credit risk I don't dislike either of the above. I have found cd clients need to stick with cds. I own a Genworth bond trading somewhere around 50 cents on the dollar. If it was my money, I'd buy Rochester Muni, Loomis Sayles Strategic Income and be done with it.[quote=BondGuy]
Lots and lots of munis. Like the line about Volvos, they’re boring but they’re good. Been hitting some good yields on all sorts of stuff. There is a lot of good PR bonds out there floating around. The Muni rally hasn't trickled down as much to the single A /BBB paper, still seeing out of whack yields. We're seeing some great CDs as our desk busts up large blocks bought from corporate holders who are looking to cash out or mitigate risk. Good credits in them too! GE preferreds trading like they've already lost the AAA. Is that an opportunity? I haven't bought any lately but who knows? Over in mutual fund land ORNAX is cutting its div. Still the highest div in the land and the fund is positve for the year. As are the other Rochester muni funds. Opco PA is raising it's ridiculously high div. EV national fund is maikng a nice come back, helped buy its higher quality portfolio. [/quote]Regarding the Oppy dividend changes....did your wholesaler call you or did I miss an email?
If there was a call, when did it come? Today? Last week?
Ivy AS is down 1.something ytd so they seem to have their mojo back. The test for them will be if this oversold market turns back up. The Ivy rep has been saying to look at their hi yield fund which is up 6% ytd. I’ve been nibbling at it, real small hi yield fund.
Ivy AS is down 1.something ytd so they seem to have their mojo back. The test for them will be if this oversold market turns back up. The Ivy rep has been saying to look at their hi yield fund which is up 6% ytd. I’ve been nibbling at it, real small hi yield fund.
I'm curious, Gordon.
Why do you believe that the market is oversold? It seems to be in line with current earnings projections, is it not? (You may in fact be right, but earnings is what I base my evaluations upon.)
More of a feel - the bear camp is bursting at the seams right now. I think tons of people had the November lows pegged and we are sitting right there. We'll either tank/capitulate or rally big time. That being said, I am not loading up the truck. This feels similar to the summer of 02 when "experts" who I previously never heard of came out of the woodwork to profess their doomsday scenarios. http://www.schaeffersresearch.com/streetools/market_tools/inv_intel.aspx
[quote=HymanRoth]
[/quote]Regarding the Oppy dividend changes....did your wholesaler call you or did I miss an email?
If there was a call, when did it come? Today? Last week?
[/quote] No email. The internal wholesaler called my assistant a few days ago. However, the Opco mgrs have been talking publically for at least a month about the need to do this. The main issue behind the div cut is that they've been unable to find enough paper to support the current payout. It's a market problem caused be the melt down, not an internal situation within the fund. I suggested they close the fund. They didn't listen.
[quote=Hey Kool-Aid]
[/quote] By GE Preferreds do you mean the $25 par bonds...I bought some for a client the other day...was a 6.25 coupon trading at around $19....about a 7% YTM for AAA bond...geez ....who needs equities ;)[/quote] The GE pref I'm talking about is a 6.5%I have a prospect that owns some of those GE Par Bonds, along with some Morgan Stanleys and some BAC’s. He has been absolutely crushed.
I know he is talking his book, but:
Recs: 1 Bill Gross, the $747 billion bond man, declares the death of equities http://www.dailyfinance.com/2009/02/26/bill-gross-the-747-billion-bond-man-declares-the-death-of-equ/Yeah...but he still gets his regular income...and someday is likely to see all of that principal back as well! I'm only buying it for clients who have cd's that they roll over and over in perpituity...they will most certainly never use the principal.I have a prospect that owns some of those GE Par Bonds, along with some Morgan Stanleys and some BAC’s. He has been absolutely crushed.