Comments for Rick Bryan's Advisors' Cafe http://advisorscafe.com Advice and Insight for the New York City Life Insurance Agent and Certified Financial Planner Community Tue, 24 Jan 2012 16:00:12 -0700 http://wordpress.org/?v=2.9.2 hourly 1 Comment on Prudential HD Lifetime 7 Plus Variable Annuity by Lee Glens http://advisorscafe.com/2009/04/30/prudential-hd-lifetime-7-plus-variable-annuity/comment-page-1/#comment-1691 Lee Glens Tue, 24 Jan 2012 16:00:12 +0000 http://advisorscafe.com/?p=279#comment-1691 I believe Rick's portrayal of the Prudential product to be fair and accurate. However, I chose a Metlife GMIB simply because I remember the Prudential litigation which resulted in Prudential having to pay millions in penalties for deceptive consumer practices. Thus, I went with a similar product but with a company I have more confidence in. Additionally, the prudential products I reviewed at the time of purchase (2.5 years ago) required me to begin withdrawal sooner than I would need for retirement, thus, allowing my money (income account) to grow at at 6% return for a longer period. I believe Rick’s portrayal of the Prudential product to be fair and accurate. However, I chose a Metlife GMIB simply because I remember the Prudential litigation which resulted in Prudential having to pay millions in penalties for deceptive consumer practices. Thus, I went with a similar product but with a company I have more confidence in. Additionally, the prudential products I reviewed at the time of purchase (2.5 years ago) required me to begin withdrawal sooner than I would need for retirement, thus, allowing my money (income account) to grow at at 6% return for a longer period.

]]> Comment on Suzy Orman’s Gaff: Variable Annuites Only Make Sense if You’re Going to Die by Andy Rates http://advisorscafe.com/2008/06/29/suzy-ormans-gaff-variable-annuites-only-make-sense-if-youre-going-to-die/comment-page-1/#comment-1686 Andy Rates Tue, 03 Jan 2012 21:24:43 +0000 http://advisorscafe.com/2008/06/29/suzy-ormans-gaff-variable-annuites-only-make-sense-if-youre-going-to-die/#comment-1686 I just started a fixed annuity and seems to be going well, except for the high rate. I just started a fixed annuity and seems to be going well, except for the high rate.

]]> Comment on Prudential HD Lifetime 7 Plus Variable Annuity by RickBryan http://advisorscafe.com/2009/04/30/prudential-hd-lifetime-7-plus-variable-annuity/comment-page-1/#comment-1682 RickBryan Sat, 24 Dec 2011 18:54:54 +0000 http://advisorscafe.com/?p=279#comment-1682 The prospecuts itself, for the NY version of Prudential's variable annuity, is 209 pdf pages. The prospectuses which describe the investment options inside the variable annuity range from 11 pages (the Invesco V.I. Core Equity Fund), up to 462 pages for the AST Neuberger Berman/LSV Mid-Cap Value Portfolio. All totaled, I think we're closer to one thousand pages related to the contract and its investment options. The prospecuts itself, for the NY version of Prudential’s variable annuity, is 209 pdf pages. The prospectuses which describe the investment options inside the variable annuity range from 11 pages (the Invesco V.I. Core Equity Fund), up to 462 pages for the AST Neuberger Berman/LSV Mid-Cap Value Portfolio. All totaled, I think we’re closer to one thousand pages related to the contract and its investment options.

]]> Comment on Prudential HD Lifetime 7 Plus Variable Annuity by RickBryan http://advisorscafe.com/2009/04/30/prudential-hd-lifetime-7-plus-variable-annuity/comment-page-1/#comment-1681 RickBryan Sat, 24 Dec 2011 05:30:32 +0000 http://advisorscafe.com/?p=279#comment-1681 Well your comment is indeed helpful, but god almighty it's so infuriating when people cannot write a critical comment without adding personal insults. What "false information" are you talking about? Certainly one of the fantastic options of this contract is the availability of a guaranteed lifetime income stream without annuitizing. However, that's not the same as saying the owner "cannot annuitze this contract even if they wanted to." Maybe you're right, but I find it hard to believe the contract owner would not have the option to annuitize. For some reason I can't locate the prospectus for this contract on the Prudential.com website. Update: Page 47 of the Prudential Premier Retirement Variable Annuity dated May 1, 2011 (with supplements up to and including December 15, 2011) provides a variety of annuitzation options. These annuitization options are not the same as the "highest daily lifetime income" benefits available under the contract, which are described beginning on page 49. So, again, please let me know what "false information" has been provided, and I will correct immediately. Thanks for your comments. <a href="http://www.highestdailycompany.prudential.com/media/managed/documents/pruannuities_investor/ppr_pros.pdf" rel="nofollow"> Well your comment is indeed helpful, but god almighty it’s so infuriating when people cannot write a critical comment without adding personal insults. What “false information” are you talking about? Certainly one of the fantastic options of this contract is the availability of a guaranteed lifetime income stream without annuitizing. However, that’s not the same as saying the owner “cannot annuitze this contract even if they wanted to.” Maybe you’re right, but I find it hard to believe the contract owner would not have the option to annuitize. For some reason I can’t locate the prospectus for this contract on the Prudential.com website.

Update: Page 47 of the Prudential Premier Retirement Variable Annuity dated May 1, 2011 (with supplements up to and including December 15, 2011) provides a variety of annuitzation options. These annuitization options are not the same as the “highest daily lifetime income” benefits available under the contract, which are described beginning on page 49.

So, again, please let me know what “false information” has been provided, and I will correct immediately. Thanks for your comments.

]]> Comment on Prudential HD Lifetime 7 Plus Variable Annuity by JetBlue88 http://advisorscafe.com/2009/04/30/prudential-hd-lifetime-7-plus-variable-annuity/comment-page-1/#comment-1679 JetBlue88 Wed, 30 Nov 2011 10:18:52 +0000 http://advisorscafe.com/?p=279#comment-1679 I liked what RealAdvisor had to say. While reading through RickBryan's posts on this page I was finding many of the things he wrote incredibly false. First and foremost, as a estate planning lawyer, you should not be giving out false product information to any consumers inquiring about the HDI annuity. In your post on 1/13/10 you said that prudential takes control of your money once you 'annuitize' the HDI annuity. There is actually no such thing as annuitization on this product. And there is no gmib rider that would stop you from receiving your account value after your begin an income stream. That, along with the highest daily step up opportunity are the two features that make this product unique and one of the best variable annuities available, (and still today with the 5%). If you have an HDI 7, or 6, and you have not turned on your income stream yet, you are still grandfathered in the 7 or 6 percent, whichever you bought. So if you have an HDI 7 or 6, you should probably keep funding it! I personally think the HDI annuity is a fantastic hedge against market downturns and not enough people are taking advantage of products like these due to fear and lack of understanding. This product is designed to provide piece of mind as it grows and then pays out (whenever you wish) an income stream you cannot outlive. It is not meant to provide liquidity, it is meant to provide some retirement guarantees. It is primarily used as a source of income and also provides some death benefit options. It can also be used for other purposes such as to create a trust for those who are interested in legacy planning. There is also an excellent spousal benefit available at no additional cost. Now the fees are high with, say the x series, but they are only associated with the account value. The protected withdrawal value is net of these fees. The fees are very reasonable for what you are getting in return and I would not make this the deciding factor in whether to purchase the HDI annuity or not. Choosing which 'series' annuity to get into (x,b,c,l) depends on your specific situation as the fees, cdsc timelines (you bail on the product before a certain date, you can get hit with fees), and benefits are different for each series. (Though of course the 5% benefit is still included in each the x,b,c,l series). But again, you who are reading this and considering this product must speak to a financial professional about suitability and your best options, not a lawyer giving false information. I hope this has helped. I liked what RealAdvisor had to say. While reading through RickBryan’s posts on this page I was finding many of the things he wrote incredibly false. First and foremost, as a estate planning lawyer, you should not be giving out false product information to any consumers inquiring about the HDI annuity. In your post on 1/13/10 you said that prudential takes control of your money once you ‘annuitize’ the HDI annuity. There is actually no such thing as annuitization on this product. And there is no gmib rider that would stop you from receiving your account value after your begin an income stream. That, along with the highest daily step up opportunity are the two features that make this product unique and one of the best variable annuities available, (and still today with the 5%). If you have an HDI 7, or 6, and you have not turned on your income stream yet, you are still grandfathered in the 7 or 6 percent, whichever you bought. So if you have an HDI 7 or 6, you should probably keep funding it! I personally think the HDI annuity is a fantastic hedge against market downturns and not enough people are taking advantage of products like these due to fear and lack of understanding. This product is designed to provide piece of mind as it grows and then pays out (whenever you wish) an income stream you cannot outlive. It is not meant to provide liquidity, it is meant to provide some retirement guarantees. It is primarily used as a source of income and also provides some death benefit options. It can also be used for other purposes such as to create a trust for those who are interested in legacy planning. There is also an excellent spousal benefit available at no additional cost. Now the fees are high with, say the x series, but they are only associated with the account value. The protected withdrawal value is net of these fees. The fees are very reasonable for what you are getting in return and I would not make this the deciding factor in whether to purchase the HDI annuity or not. Choosing which ’series’ annuity to get into (x,b,c,l) depends on your specific situation as the fees, cdsc timelines (you bail on the product before a certain date, you can get hit with fees), and benefits are different for each series. (Though of course the 5% benefit is still included in each the x,b,c,l series). But again, you who are reading this and considering this product must speak to a financial professional about suitability and your best options, not a lawyer giving false information. I hope this has helped.

]]> Comment on Prudential HD Lifetime 7 Plus Variable Annuity by Greg http://advisorscafe.com/2009/04/30/prudential-hd-lifetime-7-plus-variable-annuity/comment-page-1/#comment-1678 Greg Mon, 21 Nov 2011 01:02:30 +0000 http://advisorscafe.com/?p=279#comment-1678 Greg on Your comment is awaiting moderation. Sun, 18th Sep 2011 9:37 am Its now November 20th - is this blog out of business? Greg Greg on Your comment is awaiting moderation. Sun, 18th Sep 2011 9:37 am

Its now November 20th – is this blog out of business?

Greg

]]> Comment on Prudential HD Lifetime 7 Plus Variable Annuity by RickBryan http://advisorscafe.com/2009/04/30/prudential-hd-lifetime-7-plus-variable-annuity/comment-page-1/#comment-1676 RickBryan Tue, 30 Aug 2011 11:50:36 +0000 http://advisorscafe.com/?p=279#comment-1676 Jeff parts of your comment confuse me and I really don't understand what you are talking about with respect to 'the website gives you daily the amount you get annually when you annuitize.' What website are you talking about? Jeff parts of your comment confuse me and I really don’t understand what you are talking about with respect to ‘the website gives you daily the amount you get annually when you annuitize.’ What website are you talking about?

]]> Comment on Prudential HD Lifetime 7 Plus Variable Annuity by Jeff Lubin http://advisorscafe.com/2009/04/30/prudential-hd-lifetime-7-plus-variable-annuity/comment-page-1/#comment-1675 Jeff Lubin Tue, 30 Aug 2011 11:25:47 +0000 http://advisorscafe.com/?p=279#comment-1675 Why has the stream in this blog stopped on Feb 11??? I have this product and find it beneficial to read about it. I understand that the amount you get is not exact when you annuitize. The website gives you daily the amount you get annually when you annutize. Is this number inaccurate?? Why has the stream in this blog stopped on Feb 11??? I have this product and find it beneficial to read about it. I understand that the amount you get is not exact when you annuitize. The website gives you daily the amount you get annually when you annutize. Is this number inaccurate??

]]> Comment on Suzy Orman’s Gaff: Variable Annuites Only Make Sense if You’re Going to Die by RickBryan http://advisorscafe.com/2008/06/29/suzy-ormans-gaff-variable-annuites-only-make-sense-if-youre-going-to-die/comment-page-1/#comment-1672 RickBryan Thu, 03 Feb 2011 05:16:19 +0000 http://advisorscafe.com/2008/06/29/suzy-ormans-gaff-variable-annuites-only-make-sense-if-youre-going-to-die/#comment-1672 Yes of course for people who might need a significant portion of their money back, it would be just plain dumb to deposit money into an annuity with high surrender charges. I believe the comparison of a certificate of deposit to a variable annuity is an oranges to tangerines comparison. They are both financial products which serve different purposes. To purposefully annoy folks who object to my auto comparison, right now I own a Ford Thunderbird with a small 6 cylinder engine, and also a Ford F-150 4x4, big 5.8 litre V8 engine, and 8 foot bed. Rusted to all hell, and a leaking passenger side exhaust manifold. One I take for nice long highway drives, and the other to haul a ton of gravel up the side of a muddy hill, and pull Chevy's out of snow banks. Both are vehicles which take me from one place to another. Which do you think I use for highway travel, and which for hauling gravel? I own these two vehicles for completely different purposes, although both have tires and windshields and seats, etc etc etc. It's just dumb to ask "which is better, the Thunderbird or the F-150?" CD's and annuities are for different purposes. I am concerned the compensation to sales agents on variable annuities is disproportionate to the compensation earned on similar products. In the end, the consumer ends up paying. Compensation disclosure rules are going in the right direction, but not its not enough. Regardless, otherwise I have commentated that the sales agent's compensation is not and should not be the deciding factor in whether the product has significant value to the investor. It's like the doctor saying you need an operation to save your life or you'll die, but it will cost $100,000. What are you going to say? "No, that's too much. What is your profit margin?" If the annuity meets a consumers goals better than other alternatives, what difference does it make how much the agent earns? If the product is not a suitable investment, then the agent and manager should be held accountable. Absolutely. But unsuitable is not the same as saying the product is bad because the agent makes a lot of money. I have to say again that as a practising estate planning lawyer in New York City, I see over and over and over again how these terrible, terrible annuity products are rock solid sources of income for my senior clients year in and year out. So annuity bashers can go on and on and on; and I won't disagree with technical analysis which I can't understand. But the proof is in the pudding. I suggest looking at annuities sold in the 70's and 80's and see they have played out historically. The majority of my senior clients in a million years could not self manage an investment portfolio, but they see that check from the insurance company coming in monthly like clockwork, and they feel very good about it. Doesn't the state insurance guarantee fund back up annuity deposits? I forgot now; it's late. Yes of course for people who might need a significant portion of their money back, it would be just plain dumb to deposit money into an annuity with high surrender charges. I believe the comparison of a certificate of deposit to a variable annuity is an oranges to tangerines comparison. They are both financial products which serve different purposes. To purposefully annoy folks who object to my auto comparison, right now I own a Ford Thunderbird with a small 6 cylinder engine, and also a Ford F-150 4×4, big 5.8 litre V8 engine, and 8 foot bed. Rusted to all hell, and a leaking passenger side exhaust manifold. One I take for nice long highway drives, and the other to haul a ton of gravel up the side of a muddy hill, and pull Chevy’s out of snow banks. Both are vehicles which take me from one place to another. Which do you think I use for highway travel, and which for hauling gravel? I own these two vehicles for completely different purposes, although both have tires and windshields and seats, etc etc etc. It’s just dumb to ask “which is better, the Thunderbird or the F-150?” CD’s and annuities are for different purposes.

I am concerned the compensation to sales agents on variable annuities is disproportionate to the compensation earned on similar products. In the end, the consumer ends up paying. Compensation disclosure rules are going in the right direction, but not its not enough. Regardless, otherwise I have commentated that the sales agent’s compensation is not and should not be the deciding factor in whether the product has significant value to the investor. It’s like the doctor saying you need an operation to save your life or you’ll die, but it will cost $100,000. What are you going to say? “No, that’s too much. What is your profit margin?” If the annuity meets a consumers goals better than other alternatives, what difference does it make how much the agent earns? If the product is not a suitable investment, then the agent and manager should be held accountable. Absolutely. But unsuitable is not the same as saying the product is bad because the agent makes a lot of money.

I have to say again that as a practising estate planning lawyer in New York City, I see over and over and over again how these terrible, terrible annuity products are rock solid sources of income for my senior clients year in and year out. So annuity bashers can go on and on and on; and I won’t disagree with technical analysis which I can’t understand. But the proof is in the pudding. I suggest looking at annuities sold in the 70’s and 80’s and see they have played out historically. The majority of my senior clients in a million years could not self manage an investment portfolio, but they see that check from the insurance company coming in monthly like clockwork, and they feel very good about it.

Doesn’t the state insurance guarantee fund back up annuity deposits? I forgot now; it’s late.

]]> Comment on Prudential HD Lifetime 7 Plus Variable Annuity by RickBryan http://advisorscafe.com/2009/04/30/prudential-hd-lifetime-7-plus-variable-annuity/comment-page-1/#comment-1671 RickBryan Thu, 03 Feb 2011 04:33:57 +0000 http://advisorscafe.com/?p=279#comment-1671 Are you referring to the sales agent's compensation? Are you referring to the sales agent’s compensation?

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