Worst Thing You've Seen By Another Broker
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[quote=wallstreeter]
Heard this story through our compliance training at my old firm:
A couple brokers on a team managed over like a 5 year period or so to send all client statements to a P.O. Box, then create their own statements (slightly altered of course) and sent those ones to the clients. Over that time period they managed to scam $300 Million from the clients. Needless to say, they are in jail now and won't be getting out anytime soon.
[/quote]
I can top that. I know a guy who sold a VA to a 68 year old. I'll be he did it just for the commission.
[quote=joedabrkr]
[quote=AllREIT]
Managed Futures: Smoke and mirrors with teeth.
[/quote]
Tell that to my clients who have doubled their money in managed futures since 2007.
[/quote]
You should talk to one of my clients who doubled his money by putting $5000 on the Red Sox.
The futures market is truly zero sum, for each futures position some
else has an equal and offsetting short position. So you have at least a
50% chance of being on the wrong side of a trade.
More seriously, managed futures are so volatile that anything can happen. This is probably the place for people to be fooled by randomness.
[quote=blarmston]
Hedge funds: Mostly smoke and mirrors. The good ones aren’t acessed via retail brokers
If only we were RIA's- then the sea would part and we too could be on your level...
Oh Blarm, your mother and your B/D still love you.
[quote=Bobby Hull][quote=wallstreeter]
Heard this story through our compliance training at my old firm:
A couple brokers on a team managed over like a 5 year period or so to send all client statements to a P.O. Box, then create their own statements (slightly altered of course) and sent those ones to the clients. Over that time period they managed to scam $300 Million from the clients. Needless to say, they are in jail now and won't be getting out anytime soon.
[/quote]
I can top that. I know a guy who sold a VA to a 68 year old. I'll be he did it just for the commission.
[/quote]
Ha! Bobby, at first I thought you were going to contribute something legitimate...I guess I was wrong...my bad.
I heard one of the “Senior Guys” in the office make an interesting comment today. He said “The VA’s of today are like the LP’s of the 80’s”
[quote=Dust Bunny]
"The VA's of today are like the LP's of the 80's"
How so?
[/quote]
Yes, do tell
[quote=BullBroker]I heard one of the "Senior Guys" in the office make an interesting comment today. He said "The VA's of today are like the LP's of the 80's" [/quote]
Don't you merrill girls only get paid 4% on annuities, before the grid?
[quote=Bobby Hull]
[quote=BullBroker]I heard one of the "Senior Guys" in the office make an interesting comment today. He said "The VA's of today are like the LP's of the 80's" [/quote]
Don't you merrill girls only get paid 4% on annuities, before the grid?
[/quote]
I think it's 4.5 to grid. Now I get 7.5% where I am. And a better grid.
[quote=pretzelhead][quote=Bobby Hull]
[quote=BullBroker]I heard one of the "Senior Guys" in the office make an interesting comment today. He said "The VA's of today are like the LP's of the 80's" [/quote]
Don't you merrill girls only get paid 4% on annuities, before the grid?
[/quote]
I think it's 4.5 to grid. Now I get 7.5% where I am. And a better grid.
[/quote]
Cha-Ching. No wonder the merrill girls hate annuities. They don't get paid on them and we do! Selling VA's to merrill clients is a piece of cake.
[quote=BullBroker]I heard one of the "Senior Guys" in the office make an interesting comment today. He said "The VA's of today are like the LP's of the 80's" [/quote]
Yeah I see the similarity. When the LP's went under, all the investor's money was lost. As an example: Bill Cosby was invested heavily in Oil LP's, they went under, he lost a ton of money, and now needed money, so he started the Cosby Show. When the insurance co's go under, the clients will at least get something from the separate accounts the insurance co's have to legally maintain...so yeah, that "senior guy" makes sense.
[quote=wallstreeter]
[quote=BullBroker]I heard one of the "Senior Guys" in the office make an interesting comment today. He said "The VA's of today are like the LP's of the 80's" [/quote]
Yeah I see the similarity. When the LP's went under, all the investor's money was lost. As an example: Bill Cosby was invested heavily in Oil LP's, they went under, he lost a ton of money, and now needed money, so he started the Cosby Show. When the insurance co's go under, the clients will at least get something from the separate accounts the insurance co's have to legally maintain...so yeah, that "senior guy" makes sense.
[/quote]
WallStreeter, if you're being sarcastic, I agree with you. Bullbroker, are you sure the "Senior Guys" didn't mean Equity Indexed Annuities. When those insurance companies go belly up, so goes the client's money
Has anyone ever lost money in a fixed annuity when an insurance company went out of business? I'm asking a serious question.
I ask because I know that a death benefit has never gone upaid because of a company going out of business.
Why do I think that Wallsteeter is making a serious comment and he just doesn't have a clue?
[quote=now_indy][quote=wallstreeter]
[quote=BullBroker]I heard one of the "Senior Guys" in the office make an interesting comment today. He said "The VA's of today are like the LP's of the 80's" [/quote]
Yeah I see the similarity. When the LP's went under, all the investor's money was lost. As an example: Bill Cosby was invested heavily in Oil LP's, they went under, he lost a ton of money, and now needed money, so he started the Cosby Show. When the insurance co's go under, the clients will at least get something from the separate accounts the insurance co's have to legally maintain...so yeah, that "senior guy" makes sense.
[/quote]
WallStreeter, if you're being sarcastic, I agree with you. Bullbroker, are you sure the "Senior Guys" didn't mean Equity Indexed Annuities. When those insurance companies go belly up, so goes the client's money
[/quote]
Sorry for the confusion indy, yes i was being very sarcastic - except for the Cosby story, that's true.
[quote=anonymous]
Has anyone ever lost money in a fixed annuity when
an insurance company went out of business? I’m asking a serious
question.
I ask because I know that a death benefit has never gone upaid because of a company going out of business.
Why do I think that Wallsteeter is making a serious comment and he just doesn't have a clue?
[/quote]http://en.wikipedia.org/wiki/The_Equitable_Life_Assurance_ Society
http://money.guardian.co.uk/equitablelife/story/0,,603254, 00.html
A british insurer that repudated its entire book of Annuity business (especially fixed lifetime annuities issued at high rates in the 1980s). Major scandal at the time.
In the US the NAIC basicly operates under an FDIC type model, so they would try to merge a distressed insurance company with a stronger company(ies)
[quote=FreeLunch]Annuities are __________[/quote]
So I see we've turned this into a mad libs thing?!?! Let's see, do you want a verb or a noun or an adjective. I say baseball. Annuities are baseball. No, that doesn't quite work...
In all seriousness, for the sake of your game, annuities are great for the right client. I can see bashing the "annuity sharks" that will sell it to anyone, but since they do serve their place in the right portfolio, you can't bash the product.
I know Bobby can tell us the best ways to sell it, but the best I've heard is that you have a .3 chance of your house burning down, a .6 chance of getting in a car accident, and a 33% chance of your investments losing money, which would you want to insure? Which do you insure?
Bobby, thoughts? Better ideas? I'm sure you're foaming at the mouth waiting to express your colorful thoughts.
Allreit, Thanks. Let me rephrase my post.
Has anyone ever lost money in a fixed annuity when a U.S. insurance company went out of business? I'm asking a serious question.
I ask because I know that a death benefit has never gone upaid because of a U.S. Insurance company going out of business.
I take back my anti-Wallstreeter comment. I apologize.
[quote=anonymous]
Has anyone ever lost money in a fixed annuity when an insurance company went out of business? I'm asking a serious question.
I ask because I know that a death benefit has never gone upaid because of a company going out of business.
Why do I think that Wallsteeter is making a serious comment and he just doesn't have a clue?
[/quote]
Nobody has ever lost money in an EIA for ANY reason.
[quote=FreeLunch]Annuities are __________[/quote]
Annuities are very profitable for everyone except the client.
Where are the annuitant’s yachts?