Silac Downgrade and Hate

Both. The illustrations on their FIA products were showing insane growth 7-12%. Out of the little business I did write I never told clients that was realistic just a best case scenario, I sold it on the premise of around 3-5% per year. 3-4 years ago when interest rates were 0 they were pleased with that. Out of the 6 policies I wrote with them 4 have gained no interest, the other 2 gained interest only one year of around 1.5%. Again, I was very green when I wrote these and take the full blame on them. I am not well versed in what is the best way to reallocate them either. I went off of the illustrations and recommendations I got from using the annuities genius tool through my old FMO. After reading the previous comment it seems the S&P indexes are the most reliable? All of these policies were blended between the different hybrid ones like Ravenpack, Barclay, etc.

Sometimes contracts just have bad timing from a market perspective.

But often, those hybrid indexes are a whole lot of smoke and mirrors.

Whatever the S&P 500 Yp2p Cap backtests to.
Is what the carrier is planning to pay from an actuarial standpoint.

And you hope they follow through with that promise, because they can and do decrease those Caps just like the hybrids.


Also, I will say again, those hybrid indexes have volatility control algorithms that actually limit growth to a target return of 5%-7%.

Anyone can create an algorithm that uses past market data to create an insane return.

A miniscule few can create an algorithm that uses past market data to accurately predict future market returns.

Volatility is your friend in an indexed product. Controlling volatility is already happening with the 0% floor.

These products control upside growth to protect from large declines. FIA already protects you against large declines. Controlling the upside in a FIA is only helping the carrier.

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