Variable Annuities
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snag,
The “why” (an insurer fails) doesn’t matter. Secondly, VA’s are structures in such a way that the underlying “assets” (sub-accounts) are held in the “Separate Account”, which is, necessarily, owned for the benefit of contract owners/annuitants and their beneficiaries only and not, in any way, an “asset” of the carrier. If a carrier completes the process of failing, the liability to the contract owners is the “guarantee” of benefits (death benefit, income benefits, return of principal, etc.) that the carrier provided. That is the risk and question to which I was referring.
[quote=YHWY]snag,
The “why” (an insurer fails) doesn’t matter. Secondly, VA’s are structures in such a way that the underlying “assets” (sub-accounts) are held in the “Separate Account”, which is, necessarily, owned for the benefit of contract owners/annuitants and their beneficiaries only and not, in any way, an “asset” of the carrier. If a carrier completes the process of failing, the liability to the contract owners is the “guarantee” of benefits (death benefit, income benefits, return of principal, etc.) that the carrier provided. That is the risk and question to which I was referring.
[/quote]
Last time I checked, homeowner’s insurance is issued by insurance companies. Should we not insure our homes because the insurance company might go out of business?
You kids crack me up.
There is a huge difference Bobby, and you know it. If your homeowner policy company goes belly up tomorrow, you can go to a different company for a policy immediately, and as long as you don't have a fire tomorrow, you are ok. If your Va company goes under, you lose the sizable insurance benefit that has built up and cannot get it back.[quote=YHWY]snag,
The “why” (an insurer fails) doesn’t matter. Secondly, VA’s are structures in such a way that the underlying “assets” (sub-accounts) are held in the “Separate Account”, which is, necessarily, owned for the benefit of contract owners/annuitants and their beneficiaries only and not, in any way, an “asset” of the carrier. If a carrier completes the process of failing, the liability to the contract owners is the “guarantee” of benefits (death benefit, income benefits, return of principal, etc.) that the carrier provided. That is the risk and question to which I was referring.
[/quote]
Last time I checked, homeowner’s insurance is issued by insurance companies. Should we not insure our homes because the insurance company might go out of business?
You kids crack me up.
Hank/Bobby,
Jesus, you are one defensive annuity salesman. My point was simply that, IF an insurer fails, it doesn’t matter if it’s “becuase of VA’s” (or any other lines of business), as Snaggle put it. There are, in fact, repercussions to annuity owners IF their carrier fails.
You One-Trick-Ponies crack me up.
Alllllllllllllllllllllllllllllrighty, then.
To those of you who tried to help me in a subject that I openly admitted I was ignorant about, thank you. To those of you who took shots at me, and attempted to insult me and make yourselves feel better, I wish you the best in your next therapy session. It's amazing how many people on this board have such a vast amount of knowledge and either choose not to share it, or even worse, share it with others in a condescending manner. I would think that if a big part of your job was to educate your clients, you'd be professional in your interaction about such subject matter, whether I am a client or not.[quote=YHWY]Hank/Bobby,
Jesus, you are one defensive annuity salesman. My point was simply that, IF an insurer fails, it doesn’t matter if it’s “becuase of VA’s” (or any other lines of business), as Snaggle put it. There are, in fact, repercussions to annuity owners IF their carrier fails.
You One-Trick-Ponies crack me up.
[/quote]
Please don’t call me Jesus or Bobby. My name is Hank.
I’ve learned a new trick. Index Annuities. I did a little over $300,000 yesterday. I hate working weekends, but my office is only 5 minutes from home and I got paid 8%.
[quote=RickRoss]Alllllllllllllllllllllllllllllrighty, then.
To those of you who tried to help me in a subject that I openly admitted I was ignorant about, thank you. To those of you who took shots at me, and attempted to insult me and make yourselves feel better, I wish you the best in your next therapy session. It's amazing how many people on this board have such a vast amount of knowledge and either choose not to share it, or even worse, share it with others in a condescending manner. I would think that if a big part of your job was to educate your clients, you'd be professional in your interaction about such subject matter, whether I am a client or not. [/quote]It is illegal for us to discuss investments with you. Furthermore, it is compounded when we give you advice on how to advise your aunt. What part of that don't you understand? You might want to bring it up in your next therapy session. We are not here to give free advice to someone that is too cheap to pay for it.
Great job, “Hank”. That’s a good day’s work. I trust that the carrier you chose has the financial strength to honor its guarantees and commitments going forward.
[quote=YHWY]Great job, “Hank”. That’s a good day’s work. I trust that the carrier you chose has the financial strength to honor its guarantees and commitments going forward.
[/quote]
We’ll find out.
[quote=Hank Moody] [quote=RickRoss]Alllllllllllllllllllllllllllllrighty, then.
To those of you who tried to help me in a subject that I openly admitted I was ignorant about, thank you. To those of you who took shots at me, and attempted to insult me and make yourselves feel better, I wish you the best in your next therapy session. It's amazing how many people on this board have such a vast amount of knowledge and either choose not to share it, or even worse, share it with others in a condescending manner. I would think that if a big part of your job was to educate your clients, you'd be professional in your interaction about such subject matter, whether I am a client or not. [/quote]It is illegal for us to discuss investments with you. Furthermore, it is compounded when we give you advice on how to advise your aunt. What part of that don't you understand? You might want to bring it up in your next therapy session. We are not here to give free advice to someone that is too cheap to pay for it.
[/quote] Hey, look in the mirror. Smile. Tell yourself how great you are. Then get over it, and move on. Egotistical prick.
[quote=RickRoss][quote=Hank Moody] [quote=RickRoss]Alllllllllllllllllllllllllllllrighty, then.
To those of you who tried to help me in a subject that I openly admitted I was ignorant about, thank you. To those of you who took shots at me, and attempted to insult me and make yourselves feel better, I wish you the best in your next therapy session. It's amazing how many people on this board have such a vast amount of knowledge and either choose not to share it, or even worse, share it with others in a condescending manner. I would think that if a big part of your job was to educate your clients, you'd be professional in your interaction about such subject matter, whether I am a client or not. [/quote]It is illegal for us to discuss investments with you. Furthermore, it is compounded when we give you advice on how to advise your aunt. What part of that don't you understand? You might want to bring it up in your next therapy session. We are not here to give free advice to someone that is too cheap to pay for it.
[/quote] Hey, look in the mirror. Smile. Tell yourself how great you are. Then get over it, and move on. Egotistical prick.[/quote] You're not even a rep. What do you do? Why are you here except to glean information about a specific situation to which no one here even knows about, plus shouldn't be giving advice on anyways?
[quote=iceco1d]
I think this is the oddest annuity post I've seen on here in awhile. [quote=RickRoss][quote=Hank Moody] [quote=RickRoss]Alllllllllllllllllllllllllllllrighty, then. To those of you who tried to help me in a subject that I openly admitted I was ignorant about, thank you. To those of you who took shots at me, and attempted to insult me and make yourselves feel better, I wish you the best in your next therapy session. It's amazing how many people on this board have such a vast amount of knowledge and either choose not to share it, or even worse, share it with others in a condescending manner. I would think that if a big part of your job was to educate your clients, you'd be professional in your interaction about such subject matter, whether I am a client or not. [/quote]It is illegal for us to discuss investments with you. Furthermore, it is compounded when we give you advice on how to advise your aunt. What part of that don't you understand? You might want to bring it up in your next therapy session. We are not here to give free advice to someone that is too cheap to pay for it.
[/quote] Hey, look in the mirror. Smile. Tell yourself how great you are. Then get over it, and move on. Egotistical prick.[/quote] Anyway, Ricky, here's some advice for you - You came on here huffing & puffing about "now, I know some of you guys are foaming at the mouth over annuity commissions" - now, it's pretty clear that MOST of us on here are a bit more intelligent than a coffee table, so we immediately "get" what you are saying. Here's how that's perceived, "Now, I know some you guys are scumbags that are just out to screw your clients with the highest commission products you can find" - exactly HOW did you expect to be received by this board, when you come on here saying that [even though you tried to be as subtle as possible in your own cute little way]? Secondly, someone else pointed - we don't work for free here. If you ARE a registered rep, and you need help understanding something or need people to bounce ideas off of, surely there are plenty of members on here that would be happy to help you. If you ARE NOT a registered rep, you need to PAY for the knowledge that we have. You can encourage your aunt to get a second opinion, or you can even pony up a few bucks, and go PAY an RIA to explain this stuff to you. We don't come to your drive-thru and ask you to get us a Happy Meal for free, please don't come on here and expect us to give you free financial advice (and surely don't do with an attitude). [/quote] You know what, ice, most of what you said is right on. The more I think about my initial approach, I probably should have worded it differently. In the past, when I've done so, I still received negative feedback, so I guess that played into my underlying tone. Anyway, I appreciate your sincerity and will use a different approach next time. "Do you want fries with that?" Just kidding, I actually have an MBA, just not the knowledge of a RR. That's why I came here.
[quote=Borker Boy]
Axa and Mass Mutual are suspending some VA guarantees.
[/quote] Where did you see that BB?Sign up for Ignites and you will receive a two-week free trial, or if eligible, you will automatically be added to your company's existing subscription at...
[quote=Borker Boy]
Axa and Mass Mutual are suspending some VA guarantees.
[/quote] Very interesting. How legit is this information? Have you talked to the wholesalers yet?“Axa and Mass Mutual are suspending some VA guarantees.”
We need some clarification on this one. Guarantees are not being suspended. Anyone who purchased a contract with a guarantee, still has a guarantee. What is being suspended is new sales. MassMutual came to the conclusion with one of their GMIB riders that under current market conditions they couldn't do it profitably, so they decide to stop offering this particular guarantee at this time. I don't know any AXA details.[quote=anonymous]“Axa and Mass Mutual are suspending some VA guarantees.”
We need some clarification on this one. Guarantees are not being suspended. Anyone who purchased a contract with a guarantee, still has a guarantee. What is being suspended is new sales. MassMutual came to the conclusion with one of their GMIB riders that under current market conditions they couldn't do it profitably, so they decide to stop offering this particular guarantee at this time. I don't know any AXA details.[/quote]Axa is permitting people that have GMIB's to switch to a GWB, so that they do NOT have to annuitize. This is better for the clients, which should be quite upsetting to the fearmongers on this board.
[quote=Hank Moody] [quote=anonymous]“Axa and Mass Mutual are suspending some VA guarantees.”
We need some clarification on this one. Guarantees are not being suspended. Anyone who purchased a contract with a guarantee, still has a guarantee. What is being suspended is new sales. MassMutual came to the conclusion with one of their GMIB riders that under current market conditions they couldn't do it profitably, so they decide to stop offering this particular guarantee at this time. I don't know any AXA details.[/quote]Axa is permitting people that have GMIB's to switch to a GWB, so that they do NOT have to annuitize. This is better for the clients, which should be quite upsetting to the fearmongers on this board.
[/quote] Hank, Why is it better to switch from GMIB to GMWB? Is it just the annuitization thing? Because as far as income to the client, I would suspect they would receive more income from annuitizing than 5% withdrawal for life. If it's just an annuitization thing, than I would agree, clients like to not give up control.