You are cute, & intelligent, & you gave one of the best summaries of EIAs with the least misinformation I've seen. However, it's the "long term nature" of the product that seems to conflict with your explanation of when they're useful. I agree that the young can afford more risk during the accumulation years, but the're also the only folks who can invest for the long term. EIAs are marketed to the elderly, who don't have a long time to collect the benefits & pay the penalty for needed liquidity.
You were doing well until comparing surrender fees to penalties on CDs, which is disingenuous at best. If you cash in a 5 yr CD in 1 year, you only lose 1 year of interest. The longer you hold onto it, the more you lose. With a 10 yr EIA, the surrender fee in the first few years is most often 16-20%.
@zqbogus 10 year FIAs surrender penalty within the first few years are NOT often 16-20%. It is important to know what you are talking about before you make uninformed and irresponsible statements.
It is important to understand that IF you see a 16%-20% first year surrender penalty on a 10 year FIA, the client most likely received a 10% cash bonus upfront.
100K deposit + 10% cash bonus = 110K.
110K-20% first year surrender penalty = 88K or a 12% true surrender penalty on the clients deposit.
You are cute, & intelligent, & you gave one of the best summaries of EIAs with the least misinformation I've seen. However, it's the "long term nature" of the product that seems to conflict with your explanation of when they're useful. I agree that the young can afford more risk during the accumulation years, but the're also the only folks who can invest for the long term. EIAs are marketed to the elderly, who don't have a long time to collect the benefits & pay the penalty for needed liquidity.
zqbogus 1 year ago
You were doing well until comparing surrender fees to penalties on CDs, which is disingenuous at best. If you cash in a 5 yr CD in 1 year, you only lose 1 year of interest. The longer you hold onto it, the more you lose. With a 10 yr EIA, the surrender fee in the first few years is most often 16-20%.
zqbogus 1 year ago
@zqbogus 10 year FIAs surrender penalty within the first few years are NOT often 16-20%. It is important to know what you are talking about before you make uninformed and irresponsible statements.
It is important to understand that IF you see a 16%-20% first year surrender penalty on a 10 year FIA, the client most likely received a 10% cash bonus upfront.
100K deposit + 10% cash bonus = 110K.
110K-20% first year surrender penalty = 88K or a 12% true surrender penalty on the clients deposit.
AnnuityDoctor 1 month ago
Great meeting you at NBMBAA function last week, keep up the good work!
smarrcollc 3 years ago
You're cute!
Kleroo 3 years ago
thank you
nudawninvestments 3 years ago