Basics
How many funds are available on MA's platform? (approximately)
Bonus 100 points if you have exact figure
350+
Bonus: 359
What term do we used to refer to money being placed into an annuity for the first time?
New tax deferral
What are the tax implications of a 1035 exchange?
There are none. 1035 exchanges are tax free
What is a VIT?
Variable insurance trust
What licenses must an advisor have to work with us?
Series 65 or Series 66
What is our surrender period?
There is none. Fully liquid from day one.
What is the name of the tool we offer on our website to simulate the benefits of tax deferral?
Tax deferral calculator
Why might you not use the term "annuity rescue" with an advisor?
Bonus 200 points: What advisors would you most likely refrain from using the term "annuity rescue"?
They may have sold the client their annuity and it could offend them
Bonus: BD rep/fee based advisor
What are two passive/low cost funds we have on our platform?
Bonus 100 points: What do advisors typically do once these funds are purchased?
Dimensional Fund Advisors (DFA)
Vanguard
Bonus: buy and hold
What does the on-boarding process look like for an RIA?
Sign up on our website
What is MA's minimum account value?
$15,000
What is asset allocation?
An investment strategy that aims to balance risk and reward by distributing a portfolios asset according to an individual's goals, risk tolerance and investment horizion
What tool do we offer on our website that illustrates the potential benefits of a 1035 exchange?
Compare variable annuities tool (annuity comparison)
How does revenue sharing work?
PIMCO: 100 bps (expense ratio)
70 bps - goes to PIMCO
30 bps - we keep
Breakaway advisor
What is the optional living benefit rider we offer to MA account holders?
Trick question: There are none. The only rider we offer within MA is our ROP death benefit.
What is asset location?
A tax maximizing strategy that takes advantage of the fact that different types of investments get different tax treatments. By using this strategy, an investor determines which securities should be held in tax-deferred accounts and which securities should be held in taxable accounts in order to maximize after tax returns.
1035 exchanges account for what percentage of MA contracts?
70%
Bonus 200 points: T/F the expense ratios on our fund tool automatically include these additional basis points
We do not revenue share with these companies (synthetic revenue sharing)
Bonus: False
If an RIA has their insurance license, what does their appointment process look like?
They will not get appointed to us, even if they have their insurance license.
How does an advisor get paid if they are pulling their fee from MA?
Bonus 300: Are those advisor fees taxable?
They can be deducted from the annuity systematically - monthly, quarterly, semi-annually, or annually. Must be paid to a firm, not an individual.
Bonus: Advisor fees being pulled from an annuity funded with non qualified dollars will be treated as a taxable distribution generating a 1099 to the client at the end of the year.
What are three new tax deferral use cases?
1. HNW or high income earning clients maxing out qualified contributions
2. Life event
3. Asset location
4. Trusts
What are two benefits to clients and two benefits to advisors to 1035 exchange old annuities into MA?
Clients:
1. low cost
2. realign needs
Advisors:
1. Buildings AUM - more revenue
2. Increases and protects share of wallet
What is the difference in pricing between a VIT and a MF?
VIT= Unit value (units)
NAV= Net asset value (NAV)
Both are priced once a day
What does the onboarding process look like for a BD rep?
SGA with advisor's broker dealer
Fee based business
Register on website
Appointment process
NAIC requirements