We would love to hear from you. Click on the ‘Contact Us’ link to the right and choose your favorite way to reach-out!

wscdsdc

media/speaking contact

Jamie Johnson

business contact

Victoria Peterson

Contact Us

855.ask.wink

Close [x]
pattern

Industry News

Categories

  • Industry Articles (17,756)
  • Industry Conferences (3)
  • Industry Job Openings (3)
  • Moore on the Market (204)
  • Negative Media (139)
  • Positive Media (73)
  • Sheryl's Articles (656)
  • Wink's Articles (265)
  • Wink's Inside Story (238)
  • Wink's Press Releases (99)
  • Blog Archives

  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • August 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • November 2008
  • May 2008
  • February 2008
  • August 2006
  • Concern Mounts On Whether New Rules Will Apply To Indexed Annuities

    December 15, 2015 by Ben Mattlin

    In November, rumors were spreading that proposed new rules from the U.S. Department of Labor to ensure fairness among dealers of retirement products might extend beyond variable annuities (VAs) to their fixed-indexed counterparts.

    “There’s been a lot of concern recently,” says Rhett Owens, a commercial litigation attorney at Burr & Forman, in Birmingham, Ala. “People may or may not have resigned themselves to the fact that VAs are going to be subject to this ‘best-interest contract exemption,’ as it’s called, but if indexed annuities get lumped in under that BICE, it will be a sea change.”

    He’s referring to a new kind of Prohibited Transaction Exemption that the proposed rule would create.  Basically, it would require firms to commit to putting clients’ interests first. Companies could continue to set their own compensation policies, but must first provide clients with full disclosure, including any conflicts of interest.

    Indexed annuities have become extremely popular. Typically, they promise guaranteed lifetime income and upside potential equivalent to what many VAs offer, but with the added benefit of downside protection. What’s missing from that understanding is that they aren’t securities at all.

    Stan “the Annuity Man” Haithcock, a broker and commentator based in Ponte Vedra Beach, Fla., pointed out in a recent column that indexed annuities are actually fixed annuities with a call option on an index. They were launched in 1995 to compete with CD returns, not the stock market.

    “They are insurance products,” stresses Owens. “It will be interesting to see how they’re going to be regulated if they’re in the same regulatory category as VAs.”  

    But others seem to be betting that won’t happen. “What we’re hearing is that indexed annuities may be exempt,” says Thomas Fross, wealth advisor and partner at The Villages, Fla.-based Fross & Fross Wealth Management.

    Fross sees the industry ramping up its indexed annuity options, perhaps in anticipation of new business. “If you’re an insurance company that specializes in VAs, you can’t help but be nervous about the new regulations. Why not address this concern by ramping up indexed annuity options for qualified accounts? Especially if they will be exempt from the best-interest rule,” he says.

    He recently received a notice from Pacific Life about a new indexed annuity option for independent advisors with an “8% simple rollup” before withdrawals are taken, “which is high,” says Fross. “Then, once the client begins taking distributions, it’s guaranteed income for life. So it has the same type of withdrawal benefit as a VA — maybe even better, since I don’t know of a VA with such a phenomenal rollup — and there is no downside risk… I’m not generally a big fan of indexed annuities, but I’m starting to take a look at them as an option.”

    He’s not the only one.  In the third quarter, total indexed annuity sales swelled 13 percent over the preceding quarter to $13.8 billion, as measured by Wink’s Sales & Market Report, a gain of nearly 21 percent over the same period a year ago.
     

    Originally Posted at Financial Advisor on December 8, 2015 by Ben Mattlin.

    Categories: Wink's Articles
    currency