by GarySpicuzza » Wed Feb 10, 2010 04:20 pm
The Primary Agent at www.GarySpicuzza.com sold a Fixed Indexed Annuity a couple of years ago to a 70 year old widow.
As a result of pulling her $130,000 dollars out of the stock market her current Account Value is $145,917 and she will be getting approximately 9.6% interest this year.
This will cause her Account Value to grow to $159,925 and exceed her Income Account Value of $155,943 which will result in her receiving a higher Lifetime Guaranteed Income check every month.
Agent pleads guilty to this proper use and application of a Fixed Indexed Annuity.
As a result of pulling her $130,000 dollars out of the stock market her current Account Value is $145,917 and she will be getting approximately 9.6% interest this year.
This will cause her Account Value to grow to $159,925 and exceed her Income Account Value of $155,943 which will result in her receiving a higher Lifetime Guaranteed Income check every month.
Agent pleads guilty to this proper use and application of a Fixed Indexed Annuity.
Posted: Fri Feb 12, 2010 05:23 pm Post Subject:
We're both using hind sight. It's just that only one of us who can admit it.
An FIA may be the right strategy for this person. However, it cost her big bucks for the past year. You just can't admit it.
Posted: Fri Feb 12, 2010 07:46 pm Post Subject:
For those who value safety and growth, indexed annuity accounts should receive some strong consideration.
Posted: Fri Feb 12, 2010 09:40 pm Post Subject:
I have no problem with indexed annuities for a portion of one's money that is meant to be conservative as long as the the client understands their options in terms of exiting the contract and, if non qualified money, some of the tax disadvantages and estate disadvantages.
Posted: Mon Feb 15, 2010 03:17 am Post Subject:
So let's try again, and let's not make it about securities at all for a moment (we'll get there later) why not just use regular fixed annuities? They, after all, are "SAFE" and sound.
Posted: Sat Feb 20, 2010 03:09 pm Post Subject:
Gary,
You are the man! Bntrs and InsuranceExpert do not have a clue. I guarantee one thing, if I was in competition with either of these guys, I would kick them out of the house so quick. I was in a house yesterday and moved over 200K into indexed annuities and kicked their stock broker to the curb. By the time I was done, the clients wanted to go kick their broker in the nads. It was a fun day. Hope to do the same to Bntrs and InsuranceExpert some day. I may have to move to your respective towns to do just that.
Posted: Sun Feb 21, 2010 03:36 am Post Subject:
I can only imagine what your sales presentation must look like given your hearty supply of substantive comments made here.
Posted: Mon Feb 22, 2010 02:01 am Post Subject:
Yeah I talk about guys like you.
Posted: Mon Feb 22, 2010 04:39 am Post Subject:
The lyric to a old r&r song says, "Clowns to the left of me, jokers to the right, stuck in the middle with you." Rodney King said it this way, "Can't we all just get along?"
When it comes to money, fools and theirs are quickly parted.
The sales speak of RRs and Insurance Salespersons can persuade just about anyone to do anything if it sounds good (or too good to be true).
What really matters is whether you would give your 85 year old mother/father the same advice in the same circumstances, and be able to sleep at night.
We cannot harm persons with the products we provide, unless we provide the wrong product to the wrong person or for the wrong reason. As has been said, there is no 100% right product, or one-size-fits-all annuity -- fixed or variable or indexed -- or life policy, whether term, WL, UL, EIUL, or VUL. Each one will perform exactly as the contract indicates. Some have guarantees, others do not.
An ethical agent will explain the advantages AND DISADVANTAGES of a contract. A less-than-ethical agent will avoid the disadvantages. It's when the insured/annuitant has no idea how the contract works that he is in a position to lose.
Stocks/bonds/mutual funds have no guarantees, and if the RR is ethical, their client will understand that. If the client is uncomfortable with the lack of guarantees, he should not be prodded to go down that path.
Whether an insurance agent or a RR, I will kick the unethical one out the client's door. But I will never interfere with one who has been completely ethical. I probably cannot substantially or materially improve that person's situation, so why even try? Anything I do might have a negative effect.
I would not do that to my nearly 86-year-old mother. Or anyone else's.
Posted: Mon Feb 22, 2010 12:22 pm Post Subject:
An ethical agent will explain the advantages AND DISADVANTAGES of a contract. A less-than-ethical agent will avoid the disadvantages.
Usually an agent explains the "disadvantages" only when he knows all the USPs of the service too well. He knows how to make up for each disadvantage with a feature that could be a benefit for the prospective client.
Posted: Thu Feb 25, 2010 04:07 pm Post Subject:
What really matters is whether you would give your 85 year old mother/father the same advice in the same circumstances, and be able to sleep at night.
Amen!
That's the bottom line!
I have two questions I ask myself before I sell anyone any annuity product.
#1) Would I sell THIS product to my Mother?
#2) Would I want to be the beneficiary on THIS product?
If I can answer YES to both of those questions the sales part of the interview simply sails on and I can sleep at night and feel good about what my client's have.
My "extra" 2 cents on this thread. 8) :wink:
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