John,
There are no M&E fees on a FIA. There are no management fees or funds in which to manage (hence the name FIXED annuity). Most FIA's do have some type of participation rate, margin or spread.
Dateline Undercover on right now
- Thread starter MAPDJim
- Start date
John,
There are no M&E fees on a FIA. There are no management fees or funds in which to manage (hence the name FIXED annuity). Most FIA's do have some type of participation rate, margin or spread.
- 924
What I took away from the program:
1) The Atty Gen. from Minnesota and the financial regulator from Ala. are both politicians and voters are voters. There are more voters in TV land then are in the insurance industry.
2) The financial regulator dude from Ala. should invest in a better hairpiece.
3) Dateline did a good job finding real scumbags who do things like pay to have their pictures on the cover of fake magazines. Unfortunately, that kind of scam makes us all look bad.
4) Like all journalism, there is about 10% fact and 90% distortion to fit a story. They did not disclose that penalties as high as they were talking about typically involve a return of bonus. They gave the impression that the liquidity claim was totally false when, in fact, typically 10% a year can be taken out and 100% can be available for long-term care. They cut the guy off just before he got to his explanation of liquidity.
1) The Atty Gen. from Minnesota and the financial regulator from Ala. are both politicians and voters are voters. There are more voters in TV land then are in the insurance industry.
2) The financial regulator dude from Ala. should invest in a better hairpiece.
3) Dateline did a good job finding real scumbags who do things like pay to have their pictures on the cover of fake magazines. Unfortunately, that kind of scam makes us all look bad.
4) Like all journalism, there is about 10% fact and 90% distortion to fit a story. They did not disclose that penalties as high as they were talking about typically involve a return of bonus. They gave the impression that the liquidity claim was totally false when, in fact, typically 10% a year can be taken out and 100% can be available for long-term care. They cut the guy off just before he got to his explanation of liquidity.
- 14,809
As a model, agents are recruited into selling annuities and their training on other financial instruments starts and ends with what their "manager" tells them.
They make blanket statements regarding the stock market, blanket statements regarding CDs and blanket statements regarding other "risky" or "low-returning" investments in an effort to gain a commission under the false cloak of "helping the senior."
The dangerous part is they bite down hard on their annuity training and actually believe what they're told about other financial tools. The problem is now they conduct a presentation with conviction and easily convince the senior that annuities are the best move.
Most of the annuity "salesmen" think a DRIP is a leaky faucet.
and I was at a friend's house yesterday and others were impressed by her "cover story/photo" on "Broker's Agent" - a real estate magazine. Again, it's one that you pay to have the picture/article, the whole thing. I know, because I know people who have done it. She didn't even tell her own daughter, who thought she had been asked to be on the cover because she's such an industry legend (or something)....I didn't want to burst that bubble.
- 11,280
Sort of like you are making blanket statements about annuities and the agents that sell them?
- 14,809
I'm going with the rule - you're clearly the exception. I'll include my own industry of captive health insurance agents run around terrorizing the country. This industry in general needs a lot of clean up.
However, the FACT stands that annuity agents receive no formal training on other investment tools.
SIA - if you ran annuity training agents would be far better off. But not everyone has your knowledge nor wants it.
However, the FACT stands that annuity agents receive no formal training on other investment tools.
SIA - if you ran annuity training agents would be far better off. But not everyone has your knowledge nor wants it.
- 10,276
"However, the FACT stands that annuity agents receive no formal training on other investment tools."
Most of the time, that is true. However, if you are employed by a large captive company, your training is second to none. And the compliance? Trying filling out six pages of suitability forms. It's not fun, but the client's best interest is a major factor in determining if the application will even be submitted, let alone approved.
And I might add, even with the "captive" companies, brokers can write through dozens and dozens of companies. But the captive company management still insists on the suitability requirements, even though the contract is not one of their own.
Most of the time, that is true. However, if you are employed by a large captive company, your training is second to none. And the compliance? Trying filling out six pages of suitability forms. It's not fun, but the client's best interest is a major factor in determining if the application will even be submitted, let alone approved.
And I might add, even with the "captive" companies, brokers can write through dozens and dozens of companies. But the captive company management still insists on the suitability requirements, even though the contract is not one of their own.
The fact also stands that health insurance agents are recommending HS accounts with no formal training on other investments as well.
- 11,280
Thats ok though because the commissions are usually lower than an annuity sale.
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