What Does Annuitizing Your Book Mean?

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Oct 17, 2006 11:07 pm

Howdy all.....long time lurker....first time caller.

First of MANY silly questions:  What does the term "annutizing your book" mean? 

Thanks in advance - Broker Gump

Oct 17, 2006 11:24 pm

If you have to ask, you won't last long enough to do it.


Howdy all.....long time lurker....first time caller.

First of MANY silly questions:  What does the term "annutizing your book" mean? 

Thanks in advance - Broker Gump

Oct 17, 2006 11:31 pm


Thanks so much for the articulate response to a beginner's question.  I hope the rest of the community here is more supportive. 

I'm pretty thick skinned, but come on dude...this is a beginner's/rookie forum....if you want to go act like a beyotch...do it in the big broker areas and leave the new guys alone......we'll be the ones taking over your book after you fail because your clients all think you're a w**ker. 

Oct 18, 2006 12:25 am

Well said Gump. I like your style.   Looks like you met RealityBichslap. Too

bad he can’t spell B I T C H correctly. What are retard.

Annuitizing your book means that you turn it from a commission focused

business to one that has a fixed payout to the broker. C shares, managed

money, fee based accounts are usually how we get it done. This way, you

know what is coming in each quarter/month and don’t have to start out with

$0 on the first day of the month.

Oct 18, 2006 12:45 am

Well put, no put intended. BEGINNERS/ROOKIE forum! Some of us don’t know how to search, but we are rookies learning.

Oct 18, 2006 7:00 am


Thank you for a simple concise answer.  That's all I wanted.  (Believe it or not....you definition is pretty close to what I THOUGHT it was). 

My style is straight up, tell the truth, listen when spoken to, and for better or worse....if someone asks me my opinion...I give it without fluff or without concern if they DONT like my opinion.  Hey....they asked for it. 

I have been involved in the training of subordinates throughout my (now middle-aged) life.  There will always be those who hope to hurt rather than help, Darwinian principles tend to apply in cases like this.  The strong and supportive have a tendency thrive while the weak and threatening soon feel threatened themselves as their careers evaporate into a mist. 

I encourage everyone to share their wealth of information with the next generation of brokers.  The new brokers of today are going to be the experienced brokers of tomorrow. Fame and fortune can be fleeting, leaving your legacy through mentorship will last many lifetimes. 

I Digress.........stupid, stupid, stupid new brokers S U C K you should all go away   

Oct 18, 2006 7:03 am


RE: Searching.  I love to search, but the search strings are so hard to get just right that I NEVER get what I am looking for and still have to go through 500 threads (instead of several thousand) just to find what I need. 

I think that it is a product of this type of forum software....the search function doesnt work the way it should most of the time, but it is still better than listening to negative posts and giving up. 

Oct 18, 2006 9:12 am

It means putting your book into annuities.

Oct 18, 2006 11:49 pm

Annuitizing your book means creating annually recurring revenues using Fee-Based Programs, Residual Commission, etc.  Meaning you don’t have to keep doing transactions to generate revenue.

Oct 19, 2006 2:09 pm

1.5% a year on $1,000,000 equals $15,000 gross * 40% = $6,000 payout

divide the above figure by four and you get $1,500.

The above number will usually be paid to you quarterly (assuming the asset base stays at $1,000,000, which it won't since markets fluctuate).

Now you know roughly how much in assets you'll need to make the income you need.

Variables would be the payout of the firm you choose, which usually comes in between 30% to 50% (unless you go independent) and the fee you charge, which usually comes in between 1% and 2.5%.