Equity Indexed Annuities
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It’s probably the BEST solution if you (the agent) don’t have anything else to sell!
[quote=henryhill]
When is an EIA the BEST solution for a clinet? When is a product with a 16 or 20 year CDSC charge the BEST solution for a client? I would argue never.
[/quote] 16 or 20 year CDSC? Yeah I would be hard pressed to say that's appropriate, but that was never my point. My point was that such EIAs do not represent the entire EIA universe. Not by a long shot. I'll repeat this once more for your benefit...read it s-l-o-w-l-y... The EIA I use most often is 5 years, pays some interest regardless of the market, gives some upside market participation AND allows you to walk away after five years with principal plus. Show me a mutual fund, VA, or stock that guarantees that. Such an EIA is very appropriate for a CD prospect who compounds interest and/or is concerned about a loss in purchasing power down the road when he/she might need to tap into it. The client cannot stand risk of loss, so stock and mutual funds are out. The client is dissatisfied with 3% CDs, so CDs and money markets are not a good option. Client does not want to get locked into a long-term contract, so VAs are out (if a VA is under water, you are essentially locked in unless you are OK with taking the loss). Now tell me why the EIA I described is unsuitable. Better yet, tell me what you would use that would be better (and that the client would find acceptable). We're all here to learn, so school me.you people touting these things should be locked up! Seriously, would you be selling these things if they paid commissions like mutual funds? NO! And why? Because anyone with any experience whatsoever in this business knows that markets go up! Pick any 10 year period in history. For those that are selling on fear of the markets, get a clue! (or get a securities license!) With today's variable annuities, you can build in those same guarantees with more flexibiltiy, less fees, better performance (no caps, participation rates, shorter surrender schedules)... oh and by the way, what about attaching a LTC rider to a VA!!!??? Now you're talking!
These things are being sold by new, unlicensed, stupid people who are only watching out for their best interests. Remember, if you sell one of these, you will have to apologize for it sometime in the future! That I can guarantee. Ask yourself this, with all that is available in today's market place, how would you feel if your mother came to you and said that she has put her life savings into an EIA (not with you- so you didn't get the commission) How would you feel?I’ve made my case and I’ve yet to see you address the points I made. I can make more than twice selling mutual funds than I can selling an EIA, so you can strike the profit motive. I’ve not apologized yet for an EIA.
How old are you and were you even in this business in 2000?don’t even bother coming at me with stupid remarks… there is no way you can make selling straight mutual funds- I’ve seen the commissions. Can you even spell cfp? what licenses do you hold besides an insurance license?
I’m glad they took away the minimum post requirement in the newbie section before you got to post on the “big boy” boards, but this guy is a poster child for not letting the newbies chime in until they have read more than 3 posts. If he had, he would see that Indy is not one of the EIA idiots - and I agree that they do exist. Just like EIA’s that don’t screw the client (and therefore don’t pay us well) also exist.
I don't use the lower cost EIA's (I've never sold an EIA at all), but I've never been to the moon either. That doesn't mean that the moon landing was faked in a movie studio, just that I haven't had a personal experience with it.I did read the posts… thanks. I’m not calling Indy an idiot- if you read them, I believe he came up with that remark. My contention is that most people that have posted understand that these products pretty much suck, and for those that are touting them as the greatest thing since sliced bread are probably not licensed in other areas, nor understand the difference between true financial planning and product pushing. That’s all I’m saying-
First of all, is anyone else not able to quote responses? What the hell is up with this site…
This is in response to stlcfp. (St. Louis CFP...just a stab in the dark): It's not that the EIA pretty much "sucks". It's used in the wrong situations. If you were trying to wrap Christmas presents, you'd think a hammer pretty much "sucks". But, in the right situations, like hanging a picture, a hammer can be a very effective tool. Just some food for thought.
[quote=stlcfp]
These things are being sold by new, unlicensed, stupid people who are only watching out for their best interests. Remember, if you sell one of these, you will have to apologize for it sometime in the future! That I can guarantee.
[/quote] Stlcfp, I apologize. You called him unlicensed and stupid, but not an idiot. I agree with 90% of what you are saying, but the hyperbole is making you sound like an idiot. I'm not saying you are, but painting the brokers (some of whom are fellow CFP's) who think this is an ok product 5% of the time with the EIA slingers who think that an 80 yr old needs a 15 year surrender product makes you sound like an idiot.Again, how old are you? There are definitely EIAs out there that pay less than 5.75 upfront with a quarter trail. I know that to be true as I've used them. If I wanted to make money, the VA equivalent to what I sell pays twice as much, so profit isn't always the motivator despite what you've seen on television. ...and not only can I spell CFP, I am one. in addition, I am a CPA, hold life, health and LTC insurance licenses and am series 7/63/24/65 securities licensed. I think I'm qualified to determine what's appropriate for my clients. When you post an inflammatory post, right after one of mine, telling me that anyone who holds my opinion about EIAs should be put in jail, you should expect to be called an idiot in response. Now we can end this now in a civil fashion, or we can spend the next six pages throwing flames at each other and you'll still think I'm a crook and I'll still think you're an idiot. It's your choice.don’t even bother coming at me with stupid remarks… there is no way you can make selling straight mutual funds- I’ve seen the commissions. Can you even spell cfp? what licenses do you hold besides an insurance license?
"Now we can end this now in a civil fashion, or we can spend the next six pages throwing flames at each other and you’ll still think I’m a crook and I’ll still think you’re an idiot. It’s your choice’
Good to see that things really haven't changed. At the end of this flame war one of you will be proven right...hint it isn't going to be stlcfp. " there is no way you can make selling straight mutual funds- I've seen the commissions. Can you even spell cfp? what licenses do you hold besides an insurance license? " Wow. I wonder how I've managed to make it all these years with a book that is 85% in equities and funds? stlcfp has convinced me...Imma gonna sell some of them EIAs so I can buy baby some new shoes.Can we all agree that downside protection with upside potential is a great concept??? What if there was an EIA with 100% participation in the S&P with no moving parts, no annual renewals, short surrender, and no forced annuitization? Does that sound good?
I’ll tell you something that sounds almost to good to be true, sounds like a homerun to me. Thanks Heddy I would like to know more btw have you been on vacation?
[quote=mm06]I’ll tell you something that sounds almost to good to be true, sounds like a homerun to me. Thanks Heddy I would like to know more btw have you been on vacation?[/quote]
You and your dual personality Heddy aren’t fooling anyone, you think we were born yesterday?
Both registered the same day, both posted on only ONE thread, both last posted on the same day three weeks ago and when one pops up the other one does too within 4 minutes?
Even a 5 year-old can figure this one out.
Funny, I had an ederly (89) come in today with her helper. She said she had some stuff with her old broker in FL and wanted it moved up here…Well,…yep…2 EIA’s, 1 purchased in 2002… has 330k in it with a whopping 26% surrender and another with a face amount of 171k, surrender 127k…Purchased in 2005. Can someone help convince me these are good for ANYBODY…