Did you see this e-mail about FIAs?

Mr. Bill

Guru
1000 Post Club
2,044
I just got this e-mail this morning, anyone know the specifics of what this guy is referring to?

Annual Reset Annuities Don't Work

An unnamed annuity company just raised their fee on the monthly cap strategy from 1.5% to almost 4%. Imagine the shock to current policyholders who have little to choice accept the new policyholder unfriendly terms. Want proof of this simply reply to this email.

Annother unnamed annuity company just dropped their annual point to point cap from 8% down to 5.5%. Imagine the shock to current policyholders who have little to choice accept the new policyholder unfriendly terms. Want proof of this simply reply to this email.

There are a few annuity companies that offer guarantees whereby the caps, fees and particpation rates can not change for at least three years. The flip side of this is, that often you do not get any interest credited until the end of the three year period (even though you get annual statements indicating your progress over the years). If consumers are willing to buy 3 to 5 year CDs (where there is a penalty to access your money), why don't you think consumer can tolerate a 3 year wait until they get their monthly cap gains. Fact is they probably have held their current stock holdings for at least three years.

Learn how to sell the three year strategies and your clients will benefit. Or throw them to the wolves and hope annual renewals work out ok.

Ed Lichtig, MBA
(800) 888-3638
 
I have never liked the 3year strategy. It is a sham for the company to make more money and give the client less than if they had a one year reset.
 
Do you know which companies they're talking about, reducing the crediting rate, reducing the caps?
 
Well, then. What would your expectation be of your FMO/IMO in telling you? I haven't heard a peep. I would think that would be important information.

Did your FMO/IMO tell you about this?
 
Well, then. What would your expectation be of your FMO/IMO in telling you? I haven't heard a peep. I would think that would be important information.

Did your FMO/IMO tell you about this?

Wow, I am and am not shocked to hear about the lack of info. from fmos... so typical and yet still so dismaying.
 
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