Which Is The Best Crediting Strategy?

[TxsRang3r]

Thoughts on the Annexus crediting method? No caps with a pre-determined blend and spread.

 

[0b1kanobee]

Thoughts on the Annexus crediting method? No caps with a pre-determined blend and spread.

how can there be no caps? Is it a monthly average? Is the participation rate not 100%?

The devil is in the details.

 

[padthaiforlunch]

It's a spread, or margin. The carrier takes the first x% and credits everything after.

 

[VolAgent]

It's a spread, or margin. The carrier takes the first x% and credits everything after.

Depending on the spread, that can be real nice if you think the market is going to be very volatile over the next year. You might get a huge win.

 

[padthaiforlunch]

Yeah. It's important to have a carrier with a good spread. Some clients like to shoot for the stars.

 

[Norwayguy]

I'm becoming more and more of a fan of spreads w/ 100% participation or near 100%. American General has a policy with 3% spread and no caps on Mo. Avg. NWL usually has decent PR with a small asset fee, but their renewal rates can dip after the first year.

This is an issue with every product...Caps, Spread and Participation rates can change within contracual limits...yes I know many carrier now have 100% Part Rates in the contract but they will change the caps.

 

[Charpress]

The Annexus BAA12 product gives you 3 choices as to the percentage that is in their blend strategy.

It pretty routinely back-tests with a better return than just about any product you want to compare.

 

[0b1kanobee]

The Annexus BAA12 product gives you 3 choices as to the percentage that is in their blend strategy.

It pretty routinely back-tests with a better return than just about any product you want to compare.

I watched the webinar on that product the other night. If I understood it correctly, there are fees as high as 3% plus with the riders but no fees for the year with a negative or no return expectation. I'll have to study it some more.

What are these 'back-tests' you speak of? I would be interested in seeing them.

 

[TxsRang3r]

They are hypothetical tests that the actuarial firm (Genesis Financial Group who owns the patent on FIAs) runs for the Annexus group vs other typical crediting methods. I can email them if you want. Let me know.

 

[HarryRenard]

They are hypothetical tests that the actuarial firm (Genesis Financial Group who owns the patent on FIAs) runs for the Annexus group vs other typical crediting methods. I can email them if you want. Let me know.

I would like to take a look at these tests.
Can you please email them to me.

Thank you.



Do you work for FIG???