Go Back  S2KI Honda S2000 Forums > Off-Topic > Money and Investing
Reload this Page >

Mom's retirement/housing situation; suggestions?

Money and Investing Discuss stock picks, portfolios, retirement and other investment related topics.

Mom's retirement/housing situation; suggestions?

 
Old 06-04-2007, 05:54 AM
  #11  
 
Join Date: Oct 2002
Location: Central Florida
Posts: 737
Received 2 Likes on 1 Post
Default

Originally Posted by c2etalon,Jun 3 2007, 12:34 AM
I agree partially with xfiremd. What you guys have to understand, is your dealing with a widowed women that knows nothing close to what we all know about the market. On top of that, she is interested in perservation rather than rapid growth. Index annuites, (the good ones) have NO FEES, NO CHANCE OF LOSS, and max cap returns of up to 26% a year. My folks both have them, my dad did 12% last year in his, and he's tickled pink about that.

And who made the comment the agent is the only one happy....do you realize that a index annuity pays a commission ONCE. And thats it. And if comes from the companys pocket and NOT the clients money. Or pay your money manager 1.5% a year...hah...even when he loses money...."but your upside is UNLIMITED..haha but so is your DOWNSIDE"

I understand everyone has their opipions about the market and investing, but when your giving someone a recommendation for his widowed RETIRED mother, try and stand her shoes and not yours. Personally, I do NOT have a index annuity, but for some people they are great products.

Aaron Sweigart, CSA
I've yet to see an indexed annuity have a 26% cap. Think about it. No downside risk, we've never seen an index like the S&P 500 do 26%. There would have to be a internal fee for an insurance company to give a person 26% upside with no downside risk. I'm sure they are out there, but I doubt the agent would make any money on those products, so most people won't have access to them. The insurance company would not have to compensate anyone to sell a product that has 100% upside capture of a capped 26% return. Most indexed annuities have a cap of about 8%, or if the client is lucky 10%. The agent is compensated by the insurance company by the length of the contract sold. Most indexed products have a 10 year surrender with the ability to withdrawl a maximum of 10% in any given year. Why would you want to cap performance. Pay the higher fee and purchase a variable annuity with a guarantee. If the investments inside perform well, there is no cap. If the investment performance is poor, you have an income or withdrawl guarantee. There is a reason why Morgan Stanley, Merrill Lynch, Smith Barney, UBS, etc. don't sell these products. They are a suitablitly nightmare. They are 99 times out of 100 unsuitable.

Guess what happens when the advisor gets paid once. The agent never calls the client again. The agent gets 4,5,6,7% commission or more to lock up the client for a period of time. I understand that most retirees have very little idea how to manage their assets. That's why they should interview several financial advisors during the process of setting up their portfolio for retirement.

They mother is not retired, she has 15 years to retirement. She needs someone to help her determine her comfort level with risk, and help her determine her goals. She doesn't need to be sold a product. She needs a financial planner at this point in her life.


Matt Moreman, CFP, CFM, CRPC, ChFC
Money2536 is offline  
Old 06-04-2007, 05:05 PM
  #12  
Registered User
 
Join Date: Jan 2007
Posts: 58
Likes: 0
Received 0 Likes on 0 Posts
Default

Sounds like you need to find a good a financial planner. Allianz offers a EIA that follows the index per month and gives you 3% per month max. Alot of my clients love this product due to the ability to earn alot with no downside risk. Also, this product has no "internal fees". This is what my folks have.

This buisness is about finding a good advisor that deals with companys that take care of the client first before the agent.
c2etalon is offline  
Old 06-04-2007, 05:07 PM
  #13  
Registered User
 
Join Date: Jan 2007
Posts: 58
Likes: 0
Received 0 Likes on 0 Posts
Default

haha. Also with all your designations, you think you would know your products better. VA's guarantees only are legit if you die and your contract is down. Not when your ready to "take income".....what firm do you work for if you dont mind me asking.
c2etalon is offline  
Old 06-04-2007, 05:11 PM
  #14  
Registered User
 
Join Date: Jan 2007
Posts: 58
Likes: 0
Received 0 Likes on 0 Posts
Default

Also, not sure if this matters or if you follow this but Suze Orman stated on her show "dont ever ever ever buy this" ref. to VA's.

And also the head of TIAA Cref, (largest annt house in America) stated " I can not imagine where there would be a situation where I would suggest a VA"

Google VA's people, do your own research...they are junk
c2etalon is offline  
Old 06-04-2007, 05:27 PM
  #15  
Registered User
 
Join Date: Jan 2007
Posts: 58
Likes: 0
Received 0 Likes on 0 Posts
Default

Mr. Matthew R. Moreman I saw your page Merrill Lynch and there it states nothing about your designations. Which they are always posted to build your credability on your companys website.

http://askmerrill.ml.com/fa_info/1,,MTAwMD...html?cpao=FACOM

Also I visited the Certified Financial Planner's website (which you say you are) and your are not in thier system. I even did a search in each of the states your registered to do buisness in. Anyone can do this search if you have your doubts.

http://www.cfp.net/search/search_result.asp

I hope you dont run your buisness as a liar, but most brokers are just out for themselves. I guess thats why its so easy to move money out of Merril Lynch.
c2etalon is offline  
Old 06-04-2007, 05:56 PM
  #16  
 
Join Date: Oct 2002
Location: Central Florida
Posts: 737
Received 2 Likes on 1 Post
Default

That's me. I do appreciate the Mr. part, which is probably the only title I haven't earned. You got me on the CFP part. I just passed the national exam in November. I have to wait until August to get the creditials added to the ML site and my business card. I finished CRPC from the College of Financial Planning in January, and CFM is Merrill's internal designation known as Certified Financial Manager. I passed The American College's ChFC curriculum late last month. This issue their designation following month. I put the creditials to mock yours. You're just defending yourself, that I understand.

I, personally, am not advicating a VA specifically. I've only written about a dozen contracts. A VA can fit if there is an income shortfall or you have a person that may be more risk averse than they should be. I use them to create a withdrawl guarantee inside of an IRA to help supplement one's SS and pension payments if they were to fall short of the client's income needs. How can you say they junk. You are going to pay about 1% more than the average cost of a mutual fund portfolio depending on how many riders you add. I think you have equity indexed annuities and VA's backwards.

I think a client can do much, much better outside of a VA. 10% return net of fees inside a VA would net an 11% return net of fees using C-Share Mutual Funds. I would prefer to use the C-Share, but unfortunately some clients like the added insurance benefit.
Money2536 is offline  
Old 06-04-2007, 05:58 PM
  #17  
 
Join Date: Oct 2002
Location: Central Florida
Posts: 737
Received 2 Likes on 1 Post
Default

Originally Posted by c2etalon,Jun 4 2007, 08:05 PM
Sounds like you need to find a good a financial planner. Allianz offers a EIA that follows the index per month and gives you 3% per month max. Alot of my clients love this product due to the ability to earn alot with no downside risk. Also, this product has no "internal fees". This is what my folks have.

This buisness is about finding a good advisor that deals with companys that take care of the client first before the agent.
I think you need to do a bit more research on VA's before you completely dispell them.
Money2536 is offline  
Old 06-04-2007, 06:01 PM
  #18  
 
Join Date: Oct 2002
Location: Central Florida
Posts: 737
Received 2 Likes on 1 Post
Default

Originally Posted by c2etalon,Jun 4 2007, 08:11 PM
Also, not sure if this matters or if you follow this but Suze Orman stated on her show "dont ever ever ever buy this" ref. to VA's.

And also the head of TIAA Cref, (largest annt house in America) stated " I can not imagine where there would be a situation where I would suggest a VA"

Google VA's people, do your own research...they are junk
And Suze Orman is not out for herself? What does she say about indexed products? She thinks clients should buy no load funds because that's what clients want to here. She neglects to tell her audience that she was a 1 million dollar plus producer at Merrill Lynch for 10 plus years. She mentions that she worked for ML, but she never mentions how she made $500,000 a year. I would think she did it by charging people per transaction. I would like to think she did it ethically, but I guess we'll never know.
Money2536 is offline  
Old 06-04-2007, 06:06 PM
  #19  
 
Join Date: Oct 2002
Location: Central Florida
Posts: 737
Received 2 Likes on 1 Post
Default

I would become a CSA, but Merrill doesn't recognize it for some reason. Darn...
Money2536 is offline  
Old 06-04-2007, 06:33 PM
  #20  
Registered User
 
Join Date: Jan 2007
Posts: 58
Likes: 0
Received 0 Likes on 0 Posts
Default

Sounds like your working on alot of things at once. To get all those initails at once and not have any sign of them on your page at Merrill Lynch, thats interesting. Work real hard at college, tell everyone about that, but leave out the fact that you have the full alphabet after your name? I'll make sure to follow up with your page to look for all you new initals that just recently earned...hah.. I was figuring on a response of that nature. Keep doing what your doing buddy, I did notice you are missing the BS initials...as in Bullshitter.

I now see why brokers have such bad repuation, but keep it up cause it makes it that much easier for me to transfer that money out of your retards control.

I'll follow up with you soon, and I encourage everyone else to.
c2etalon is offline  

Quick Reply: Mom's retirement/housing situation; suggestions?


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service

© 2019 MH Sub I, LLC dba Internet Brands