Comments on: State Officials Cracking Down On Annuities Being Sold To Seniors http://reversemortgagedaily.com/2008/11/05/state-officials-cracking-down-on-annuities-being-sold-to-seniors/ Reverse Mortgage News and Information Thu, 24 May 2012 20:46:00 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: dduck http://reversemortgagedaily.com/2008/11/05/state-officials-cracking-down-on-annuities-being-sold-to-seniors/comment-page-1/#comment-11482 dduck Fri, 07 Nov 2008 00:14:19 +0000 http://reversemortgagedaily.com/2008/11/05/state-officials-cracking-down-on-annuities-being-sold-to-seniors/#comment-11482 For a rough idea of a fixed annuity payout on an Immediate Annuity go to: immediateannuities.com. Or ask a CLU, ChFC or CFP (we don't bite) or call Vanguard, TIAA or any reputable insurance company. For example, I did one for myself on a RM with a $251,960 (IBIS) (Male 70, Female 66)a month, tax free as long as you reside in the home (payments stop if you sell and the loan becomes due). The figures from the above web site was $1532/mo based on Joint and Survivor 100% including AFTER one leaves the home. Of course part of the payments ARE taxable according to an exclusion ratio so you need to factor that in. Hope this clarifies this a little. I have no ax to grind but some articles in www.reverse-mortgages.com seem to prefer life payouts. For a rough idea of a fixed annuity payout on an Immediate Annuity go to: immediateannuities.com. Or ask a CLU, ChFC or CFP (we don’t bite) or call Vanguard, TIAA or any reputable insurance company. For example, I did one for myself on a RM with a $251,960 (IBIS) (Male 70, Female 66)a month, tax free as long as you reside in the home (payments stop if you sell and the loan becomes due). The figures from the above web site was $1532/mo based on Joint and Survivor 100% including AFTER one leaves the home. Of course part of the payments ARE taxable according to an exclusion ratio so you need to factor that in. Hope this clarifies this a little. I have no ax to grind but some articles in http://www.reverse-mortgages.com seem to prefer life payouts.

]]> By: James E. Veale, CPA, MBT http://reversemortgagedaily.com/2008/11/05/state-officials-cracking-down-on-annuities-being-sold-to-seniors/comment-page-1/#comment-11481 James E. Veale, CPA, MBT Thu, 06 Nov 2008 23:50:22 +0000 http://reversemortgagedaily.com/2008/11/05/state-officials-cracking-down-on-annuities-being-sold-to-seniors/#comment-11481 I have yet to receive one schedule demonstrating the cash flow from any annuity product on both a pre and post income tax basis based various scenarios of age and life expectancy. It is on this basis and only this basis that one can begin making observations on the advisability of using HECM proceeds to buy an annuity rather than using its tenure payment feature. For people who have passed an examination of the laws related to the sales of insurance, securities, and other financial products, it seems they could do this but I have yet to meet one who will. It seems like the financial presentation skills of too many annuity sales people end with their licensing and learning how to answer objections. Mr. Nelson, like you, I believe in licensing and would like to see it come about in our industry. I have yet to receive one schedule demonstrating the cash flow from any annuity product on both a pre and post income tax basis based various scenarios of age and life expectancy. It is on this basis and only this basis that one can begin making observations on the advisability of using HECM proceeds to buy an annuity rather than using its tenure payment feature.

For people who have passed an examination of the laws related to the sales of insurance, securities, and other financial products, it seems they could do this but I have yet to meet one who will. It seems like the financial presentation skills of too many annuity sales people end with their licensing and learning how to answer objections.

Mr. Nelson, like you, I believe in licensing and would like to see it come about in our industry.

]]> By: James A. Nelson http://reversemortgagedaily.com/2008/11/05/state-officials-cracking-down-on-annuities-being-sold-to-seniors/comment-page-1/#comment-11467 James A. Nelson Thu, 06 Nov 2008 18:15:10 +0000 http://reversemortgagedaily.com/2008/11/05/state-officials-cracking-down-on-annuities-being-sold-to-seniors/#comment-11467 Alas, dduck, you remind me of the fourth grader who if he couldn't be the boss, took his ball and went home. Un-reasonable?; I suspect my reverse mortgage clients would have a different view. Almost fifty years ago The Procter and Gamble Distributing Company taught a young Salesman a wonderful and lifelong lesson: "Take care of the Client first, Nelson, within the limits of Company policy. Then, the Client will in turn take proper care of you and The Procter And Gamble Company." It works!!!!!!! Alas, dduck, you remind me of the fourth grader who if he couldn’t be the boss, took his ball and went home. Un-reasonable?; I suspect my reverse mortgage clients would have a different view. Almost fifty years ago The Procter and Gamble Distributing Company taught a young Salesman a wonderful and lifelong lesson: “Take
care of the Client first, Nelson, within the limits of Company policy. Then, the Client will in turn take
proper care of you and The Procter And Gamble Company.”
It works!!!!!!!

]]> By: dduck http://reversemortgagedaily.com/2008/11/05/state-officials-cracking-down-on-annuities-being-sold-to-seniors/comment-page-1/#comment-11466 dduck Thu, 06 Nov 2008 17:49:03 +0000 http://reversemortgagedaily.com/2008/11/05/state-officials-cracking-down-on-annuities-being-sold-to-seniors/#comment-11466 I see you are not a reasonable person. You win. Goodbye, I wish you well. I see you are not a reasonable person. You win.
Goodbye, I wish you well.

]]> By: James A. Nelson http://reversemortgagedaily.com/2008/11/05/state-officials-cracking-down-on-annuities-being-sold-to-seniors/comment-page-1/#comment-11465 James A. Nelson Thu, 06 Nov 2008 17:42:27 +0000 http://reversemortgagedaily.com/2008/11/05/state-officials-cracking-down-on-annuities-being-sold-to-seniors/#comment-11465 DDuck, All the fancy titles don't mean a damn thing, if the Senior's best financial interest doesn't come first. Sorry the proceeds of a reverse mortgage should not be put into an annuity of any kind, in my opinion. It just isn't financially necessary or benefical. And to Mr. Dave Stormont: You are one hundred per cent correct. We all see Seniors in their 70s and higher who cannot qualify for an FHA HECM because of loan to value. Those Seniors should have been counseled about the benefits of a Reverse mortgage when applying for a new, forward home loan at an earlier age. Don't get me started on banks, Dave. Mortgage Brokers have to be State licensed but not Bankers--because they have a more powerful lobby in Washington, D.C!!!! FHA should require all dealing with the sale of FHA HECM products to Seniors to be licensed. Don't tell me how honest, upright, and consumer oriented banks are: Just look at the terrible financial siuation the Country is in now--the greed of some banks is a real part of the problem. DDuck, All the fancy titles don’t mean a damn thing, if the Senior’s best financial interest doesn’t come first. Sorry the proceeds of a reverse mortgage should
not be put into an annuity of any kind, in my opinion. It just isn’t financially necessary or benefical. And to Mr. Dave Stormont: You are one hundred per cent correct. We all see Seniors in their 70s and higher who cannot qualify for an FHA HECM because of loan to value. Those Seniors should have been counseled about the benefits of a Reverse mortgage when applying for a new, forward home loan at
an earlier age. Don’t get me started on banks, Dave. Mortgage Brokers have to be State licensed but not Bankers–because they have a more powerful lobby in Washington, D.C!!!! FHA should require all dealing with the sale of FHA HECM products to Seniors to be licensed. Don’t tell me how honest, upright, and consumer oriented banks are: Just look at the terrible financial siuation the Country is in now–the greed of some banks is a real part of the problem.

]]> By: dduck http://reversemortgagedaily.com/2008/11/05/state-officials-cracking-down-on-annuities-being-sold-to-seniors/comment-page-1/#comment-11464 dduck Thu, 06 Nov 2008 17:01:05 +0000 http://reversemortgagedaily.com/2008/11/05/state-officials-cracking-down-on-annuities-being-sold-to-seniors/#comment-11464 Yes Virginia, there are crooks in all industries. Yes Virginia, there are crooks in all industries.

]]> By: dduck http://reversemortgagedaily.com/2008/11/05/state-officials-cracking-down-on-annuities-being-sold-to-seniors/comment-page-1/#comment-11463 dduck Thu, 06 Nov 2008 16:57:24 +0000 http://reversemortgagedaily.com/2008/11/05/state-officials-cracking-down-on-annuities-being-sold-to-seniors/#comment-11463 First of all I use dduck at my choice. I am a CLU, ChFC and am a Series 7 and and in the financial services industry for over 30 years. I have owned up to 6 annuities at any one time and I have never had a complaint against me. As of this writing I am only recommending a RM for myself and either tenure or an IA FOR MYSELF. I am gathering information at this point and am keeping an open mind. By the way, if an insurance professional gives good honest guidance, then he deserves what ever the commission rate is (about 4%) and I also should let you know that you can buy annuities that don't pay a commission. I suggest that if you knew more about annuities that you would see they are just another financial planning tool. First of all I use dduck at my choice. I am a CLU, ChFC and am a Series 7 and and in the financial services industry for over 30 years. I have owned up to 6 annuities at any one time and I have never had a complaint against me. As of this writing I am only recommending a RM for myself and either tenure or an IA FOR MYSELF. I am gathering information at this point and am keeping an open mind. By the way, if an insurance professional gives good honest guidance, then he deserves what ever the commission rate is (about 4%) and I also should let you know that you can buy annuities that don’t pay a commission.
I suggest that if you knew more about annuities that you would see they are just another financial planning tool.

]]> By: Dave Stormont http://reversemortgagedaily.com/2008/11/05/state-officials-cracking-down-on-annuities-being-sold-to-seniors/comment-page-1/#comment-11462 Dave Stormont Thu, 06 Nov 2008 16:47:59 +0000 http://reversemortgagedaily.com/2008/11/05/state-officials-cracking-down-on-annuities-being-sold-to-seniors/#comment-11462 I am glad to see they are looking closely at the annuity purchase practice. I also wish they would look at financial institutions, mortgage companies and brokers that refinance seniors from one home equity loan to another with no real benefit to the borrower. Reverse Mortgage has the Anti-churn requirement/test. Forward mortgage should have the same concept, maybe they do in some states, I don't know. I also think that anyone 60 or older applying for a any Mortgage, Refi or HELCO should be required to seek counseling just like a reverse mortgage. I am glad to see they are looking closely at the annuity purchase practice. I also wish they would look at financial institutions, mortgage companies and brokers that refinance seniors from one home equity loan to another with no real benefit to the borrower. Reverse Mortgage has the Anti-churn requirement/test. Forward mortgage should have the same concept, maybe they do in some states, I don’t know. I also think that anyone 60 or older applying for a any Mortgage, Refi or HELCO should be required to seek counseling just like a reverse mortgage.

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