Which VA's?
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I would say that clients who understand what exactly is guaranteed are happy, that seems to be a smaller % than I would like.
VAs are expensive, complicated and most people hate the idea.
I use them as a portion of the income part of my portfolio. Tack on the income benefit and death benefit (5-6% annually) and that is better than any type of bond you can find, because as long as it's under $100K its guaranteed(per company if they were to fail). And then if you get a little upside some years great. I don't know of any other way for clients who didn't save enough to live on what they did... ie Guy making $75K retires... no pention, ss is $15K/year, and then a 401K with $1 million.. how do you make sure that guy can get $60K out of that without using some type of annuity?Use a reverse mortgage for tax-free income and have a life insurance policy in place to pay off the accumulated debt at death.
Refinance the reverse mortgage for the accumulated interest tax-deduction and convert part of their qualified money to a Roth IRA for more tax-free income.The cost of owning a VA with a living and db would be 4% per year so you are definitely going to use the insurance. I have never done a bonus VA as I don't like the 9 year lock up.
I posted here as I wanted to get out of the Wachovia/Wells Fargo circus and wanted to discuss something else. It's funny- when you leave WS you don't really care what the retention is.Has anyone heard of an FDIC insured annuity? A prospect said that someone had pitched it to them. Could they be talking instead of some structured product?
For what it’s worth, the Pru VA is being enhanced in February. Now the minimum issue age is 45 as opposed to 55 and the 7% income growth goes for 25 years…so that’s 600% guaranteed growth of income.
Beware of insurers who are not raising benefit rider expenses, in this climate it’s a must for hedging reinsurance blocks on future business.
Heard the Prudential daily step up deal today and was impressed. I asked how they were able to do it when everyone else pales in comparison. Their ability to move your client to fixed as a stop loss seemed to be the answer.
This would seem to blow what I am using out of the water. The wholesaler did say if you need income right away then Met was decent as it let you take 6% versus their 5%. However the daily market step plus I think he called it the stacking (7% daily rise in the income base if Mr. Market sucks) seemed almost too good to be true.ALLIANZ
I am campaigning right now using the Target Date rider for 45+ and clients love it. Someone said that their VA clients are happy and their others are not... I would agree with that. VA's can be expensive and complicated, but are clearly worth it for a portion of a clients portfolio. I am still trying to learn Allianz income rider at this point, but it sounds great so far as well.I did a few of the Pac Life with the Foundation 10 towards the end of the year. At National City, we were limited to only a few, and it was definitely the best of the bunch, but the eliminated the Foundation 10.
I’m doing a case right now for a client that potentially needs income now. The JNL Future Guard 6 is a very nice VA option.
Isn't that a 5% for life income benefit with quarterly steps if the market (ha ha) does better?
Watching the insurer stocks today, looked like Allianz was faring the best. Hartford and Lincoln were acting like they are going out of biz before we see March.