Friday, April 13, 2012

Shock Doc: What Drives Fixed Annuity Sales to Teachers?

Originally posted on my Meridian Wealth Blog on December 16th, 2011

I’m beginning to understand why ASPPA/NTSAA is so determined to preserve the status quo in the 403(b) world (I already knew, this is just a fun way to illustrate), it certainly doesn’t appear to be the participant’s best interest.  Here are a few of the perks of selling annuities from Midland National, Horace Mann, LSW:
Costa Rica
Alaskan Cruise
Banff (Alberta, Canada)
Switzerland (Lake Como and Montreux)
Riviera Maya, Mexico
Commissions up to 16%
Stock and Cash awards
All of this can be yours if you sell enough fixed annuities through Four Seasons Financial Partners!
Of course there is no mention of what is best for participants and the F word is curiously missing (Fiduciary), however there are 5 reasons to join Four Seasons (in their own words):
1.  World Class, luxurious conventions to top destinations!
2.  Commissions up to 16%!
3.  Bonuses up to 11% for 7 years.
4.  FSFP offers SPIA’s, MYG’s, Traditional Fixed, Equity Indexed Annuities.
5.  Top notch service
But don’t take my word for it, read the brochure below – you won’t believe it.  Next time an agent sells you an annuity, maybe you should ask what the commissions are and what trip they are qualifying to go on by selling it to you.
Keep in mind (in my humble opinion) that instead of cleaning these shenanigans up, ASPPA/NTSAA supports its proliferation via their “Choice” model.