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Advantage Compendium - An Index Annuity Resource |
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Term End Point Index Annuities 2001
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The millennium bear market was the nastiest bear market in a generation. However, unlike the ‘70s and ‘80s bear markets in which investors left the stock market and didn’t return, the millennium bear market is causing investors to rethink how they are going to stay in the market not whether they will remain. Individuals now understand that stock vehicles can provide higher returns than fixed rate alternatives, but they also understand that higher potential returns means higher potential losses. For consumers that don’t have the time or temperament for equity instruments, but still want higher potential returns, index annuities using a term end point methodology are an answer. A term end point crediting structure measures index movement over a period of years and credits this interest at the end of the period, annual gains and losses are ignored. Almost every index annuity with this structure averages index values for the final year of the period, this averaging means the annuity misses about half of any final year index gains, but it also means you’d only feel about half the effects of a final year bear market. Since term end point designs don’t lock-in annual index movements, their option cost is lower (but almost every term end point index annuity does treat a death as the period end and credits any interest earned). A lower cost permits term end point designs to credit, today, 60% to 85% of the index movement if you hang around for the typical seven to ten year period. If the index stays flat or declines, the worst the consumer gets back is 110% to 130% of the premium, depending upon the annuity selected. In a bad market the premium is protected against loss, in a good market the potential interest credited is higher than other savings vehicles. The chart shows the hypothetical yearly returns for a term end point index annuity, averaging the final year’s index values, using nine year periods. The numbers at the bottom of the chart represent the first year of the nine year periods (the first number represents 1/1/82 to 1/1/91 and the last 1/1/92 to 1/1/01). I’ve also included the effective period return for the average certificates of deposit for the periods.
The point of the chart is not to show that index annuities can produce higher returns than certificates of deposit; it was a bullish time for the market. The purpose is to illustrate that term end point index annuities can generate very respectable returns in good markets, and suggest that perhaps some consumers would rather use a vehicle that let’s them get credit for most of an index increase, while guaranteeing at least a minimum return, rather than being exposed to all of the potential gain and loss of the market.
30 Second Guide To Success
Return to Library Index Fire Clients That Don’t Fit Your Profile - If someone is a jerk or if they want an area that you don’t want to specialize in, dump them. Poll Your Clients - Ask them “If there was just one thing you could change about us what would it be?” Understand Your Clients - Put yourself in their shoes and look at the way you now operate. Are you easy to do business with? Own Your Problems - When you screw up, admit it, fix it, and move on. 2nd Quarter EIA Sales Set Record As has been the case since we started tracking sales, production is concentrated in the top carriers. Allianz, Midland National and American Equity alone are responsible for over half of second quarter sales while the combined market share of the thirty smallest players is less than 15%.
Products with agent “street level” commissions of 11% or more made up 36% of sales, this was down slightly from a year ago. However, while 1 in 3 index annuities sold a year ago had an agent commission of under 6%, this was only true for 1 out of 10 annuities sold in the second quarter. The average index annuity premium was $29,396 which is on par with the previous quarter, average premium ranged from $5,000 to $58,600. Slightly more than half of index annuities were purchased with qualified funds. Sales By Other Indices Even though ten carriers offer bond or other equity indexes the S&P 500 represents 96% of industry sales. Market Composition
Rate Guarantee Periods Methodologies Maximum Issue Age Minimum Interest Guarantee 1 Year Annuities Instead of CDs
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One possibility for these time-averse consumers are fixed annuities with a one year surrender period. There are several fixed annuities available that still offer a rate around 5% and provide bank savers an alternative with higher interest, tax deferral and the one year horizons they seek. However, certain index annuities could result in these savers earning twice the interest their bank will pay over the coming year. The most competitive 1 Year Term EIAs are offered by Keyport and Lafayette Life The most competitive index annuities on the market with a one year surrender period are the Keyport KeyIndex 1 Year and the Lafayette Marquis Flex 1 Year. The KeyIndex credits interest based on 40% participation rate of the S&P 500 index gain up to a maximum of 10%. If you look at the last 50 years, this crediting structure would have beat current CD rates over half of the time The Lafayette Marquis Flex participates in 100% of any S&P 500 index increase up to 8%, and unlike any other index annuity out there, credits a minimum of 3% interest even if the index declines. If you plug in their current rates and look at the last fifty years the structure beats today’s CD rates over 60% of the time and would have credited 8% over half of the time. Both the Marquis Flex and KeyIndex offer an attractive story in many financial environments, but a combination of a bear market and low bank rates gives these products a very strong story to tell. As I write this the S&P 500 index is hanging in the 1100’s. On September first one year ago the S&P 500 closed at 1520.77. If one year from now the S&P 500 has crawled back to a level of 1300 - which would still be 15% below where it was in 2000, the Marquis Flex would credit around 8% - roughly double the current interest paid on CDs. Or, if the S&P 500 took until 2002 to struggle back to near it’s previous high the KeyIndex would credit 10% interest in a 4% world.
At the end of the index annuity year the customer can put the money back in the bank, let it stay in the annuity for another year, or transfer to an index annuity with a longer term. The time for introducing index annuities to consumers is now. Both carriers report increased sales in these products, so perhaps you need to be the first one to tell this index annuity story. The Growth Of Multiple Indices
Return to Library Index The first annuity basing crediting on movements of the Dow Jones Industrial Average was introduced by American Equity in the Summer of 1999. Today ten carriers offer indices beyond the S&P 500. The number of EIAs offering other indexes are:
A new index annuity variation offers consumers the ability to rebalance the percentages placed in the fixed and indexed accounts on an annual basis. A couple of carriers automatically rebalance the entire account each year. Using additional indices can reduce overall volatility, the hope is that when one index zigs the other will zag and in a downward market losses can be lessened. Our models indicate a combination of a fixed account and an equity index, or combining a bond index and equity index, does reduce volatility. Putting together different equity indices can also reduce volatility. As a very recent example, if you look at one year periods of the S&P 500 ending during the first eight months of 2001 the worst return was a loss of 26.83% and even the best one year period showed a loss of 1.49%. In fact, most annual periods for the year reported double digit losses. By contrast, the worst Dow Jones Industrial Average year showed a loss of 15.47% and only a few weeks during the year would have resulted in double digit losses. In fact, the Dow delivered positive returns nearly half the time and produced a 10.16% gain for one period. A combination of the two indexes would have produced a smoother ride than simply holding the S&P 500. Talking Pictures
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The reason you have never heard of Steven Stereoski, and another inventor is given the credit Stereoski rightfully deserves, is because another individual, O. F. Rohwedder, had not yet created the invention that was responsible for the technological explosion in the twentieth century. You see, Otto Frederick Rohwedder invented an automatic bread slicer in the 1920‘s. Coinciding with the announcement of Rohwedder’s invention The Jazz Singer premiered. The voice of Al Jolson filling the theatre thrilled audiences, and thanks to Mr. Rohwedder’s invention these people had something to say. Now when asked “How was it?” The moviegoer could remark “Talking pictures are the greatest thing since sliced bread” and an industry was reborn. The sliced bread metaphor became the most popular advertising comparison used in the western world and resulted in a proliferation of inventions, consumer products, and played a major role in the final triumph of capitalism over communism. Otto Rohwedder lived to a ripe old age amid the adoration of marketing people everywhere. Steve Stereoski died in 1930, ironically, after falling into a kneading machine at a local bakery. The lesson to be learned from all of this is it’s not enough to simply create a better product, to make dough you also knead to be able to relate the product benefits to something the customer already understands A Bear Market
Return to Library Index Events of September pushed a tottering economy over the edge and so length of this millennium bear market is still being written. The 21st of September witnessed the 558th day of the market’s decline. Although markets came back from this low as of the end of September the S&P 500 is still down 32% from its high, the Dow Jones Industrial Average has fallen 25%, and the NASDAQ has plummeted 70%. It was the worst September for the stock market ever with dreaded October days still to come. If this is a “normal” bear market we would bust through the previous March 2000 high of 1527 sometime next Spring. In fact, two previous bear markets, the ones of 1966 and 1990, were already over by this point in the cycle and hitting new highs. The problem with bear markets is they refuse to follow a script. The 80-82 Bear took three years to regain a top, as did the 68-70 Bear. The OPEC bear of the ‘70s outlasted the terms of three presidents while going from peak to valley to peak. On another historical note, if the S&P 500 fails to close above 1320 at the end of 2001 we will see two back-to-back years with negative returns. This would only be the second time this has happened in the last half century.
There is strong talk of a prolonged recession and the market is reacting to this talk. What is the long term outlook for the economy and the market? Notwithstanding the terrible events of September and its initial effects on the economy the nation’s finances are basically sound. Although the economics of the airline industry may have fundamentally changed, this recession may well prove to be milder than many believe at this moment. Unlike the economic picture going into the 1990 recession, both banking and the housing industries are strong today. Unlike the 1981 recession scenario, we do not have a tremendous amount of excess industrial capacity nor are inventories at record highs. Unlike the 1973-1974 recession oil prices haven’t tripled. And, unlike any previous recession of the last thirty years the economy has low interest rates and a very low rate of inflation. The cost of borrowed dollars used to ignite a recovery’s flames are cheap
and those dollars will preserve their purchasing power. An “official recovery”
could begin as early as the first quarter of next year and probably no later
than the second, if, as it now appears likely, we actually experience the
classical definition of a recession with two consecutive negative quarters of
decline.
Goldilocks And Modern Portfolio Theory Return to Library Index
The moral of the story is even bears benefit from index annuities Bear Market Opportunity
Return to Library Index I don’t know when the economy will rebound. I don’t know where the S&P 500 index will be a decade hence, but I do believe the S&P 500 will recover its lost ground and push through to new heights with index annuity owners benefiting. Let’s look at annual reset designs. At today’s nominal rates most of the annual reset structures are crediting 40% to 50% of what the index actually does. Let’s translate all that. If the index takes a year to get to 1100 - which would match the market bottom of last Spring - most annual reset annuities would credit 5%. 5% is nothing to jump up and down about, but it is still respectable in a 4% bank world. If the S&P 500 index got back to 1200, most annual reset annuities would credit 10% interest, and we’d still only have regained 200 points of our bear slide. If the S&P 500 took two years to make it back to 1400, many annual reset index annuities would post back-to-back double digit returns and we’re not talking about exploring new ground, the index would still be over a hundred points beneath the previous high. Index annuities with term end point structures measuring movement over a number of years offer tremendous opportunity. If the index took three years to regain its high, and maintained that pace of growth, term yield spread instruments like ING USG Generation Pro and Horizon, or Midland National Legacy would be looking at 11%-12% net annual returns. Even if it took four years for the index to regroup a nine year Jackson National Elite 90 or a Great American EquiLink would have about a 40% head start on the rest of their term and that’s after applying the participation rate. These term end point structures offer crediting certainty with no moving parts and competitive rates; the only variable is index performance. Even in the worst bear market in a generation no index annuity owner has lost a dollar of premium and now index annuities are poised to capitalize on the next bull market. If there ever was a time to be telling the index annuity story that time is now.
Retirement Lost (and found)
Return to Library Index Two years ago everything was perfect. In 1999 alone the increase in the value of her IRA was more than she had earned from her job. Back then she knew that she’d be able to retire on time and do more of the volunteer work that was becoming her passion, but now? The ringing phone interrupted her thoughts. “Phyllis, this is Bill,” it was her friend from work calling. “Did you happen to catch the financial news?” “Oh Bill I did, isn’t it terrible?” Phyllis replied. “Yeah” said Bill. “As near as I can figure I’ve lost 35% of my retirement money in this market, and I was hoping to pull the plug next year and play golf all day. I guess I’ll be working a lot longer then I planned. How are you holding up?” “I don’t know,” said Phyllis, “Early last year my advisor helped me move my IRA into some index that she said offered more protection from market loss.” Bill opined “Phyllis, I guarantee you there’s no such thing as an index that protects you from market loss. If there were everyone would own one. I guess we’ll both be working at our jobs a lot longer than either of us planned.” As Phyllis got off the phone she felt her stomach knot. All of her goals and dreams were going to disappear in this bear market. Last Spring when it appeared that this downturn was only going to last a few months was one thing, but it now seemed like the market would never go back up. Well, she might as well schedule an appointment with her financial advisor and see how badly she’d been hurt. Phyllis found her advisor’s card and dialed the number. “Barbara,” she began “This is Phyllis. I’m sorry to call you this late, but I was hoping to come in and see you tomorrow to talk about how much money I’ve lost.” “Phyllis, of course I’d be happy to see you, but I’m a little confused. What lost money?” asked Barbara. “Well” Phyllis continued, “The stock market has been awful this last year and my friends tell me they’ve lost thousands and thousands of dollars. I felt I should face the music and see how long I’ll have to delay my retirement.” “Oh, I see,” responded Barbara, “Perhaps I can ease your mind a little. During our annual review of your portfolio in the Spring of last year do you remember telling me that even though your IRA was going up in value, that you were still very uncomfortable with the volatility of the stock market?” “Yes. I didn’t like the fact that I could lose what I gained if the stock market went down,” said Phyllis. “Exactly” Barbara replied, “You told me that you were willing to accept a lower potential return if your principal was protected from market risk, correct?” “Yes.” “So, last year we transferred your IRA money into a combination of fixed interest annuities and fixed indexed annuities. The fixed interest annuities produce a guaranteed interest rate and the fixed indexed annuities give you the potential for a higher return because the interest earned is linked to an equity index. Since this equity-linked interest is earned inside a fixed annuity neither the interest credited to it nor the original principal can ever be lost if the market goes down.” “I haven’t lost any money?” “No, the fixed interest annuity paid a guaranteed interest rate and the indexed annuities credited zero interest due to the bear market, but of course when the index goes back up you’ll share in the growth and over the coming years the indexed annuity can produce a lot more interest.” “So, I didn’t lose any money?” “No, you didn’t lose any money,” said Barbara smiling as the call ended and Phyllis said goodbye. When Barbara reached her office the next morning there was a rather large
chocolate cake sitting on her desk. On the cake was written “Thank you for
saving my retirement”. Barbara didn’t need a card to tell her whom the cake
was from. As Barbara prepared for her first client meeting of the day the phone
rang “This is Bill, I work with Phyllis. When can I come into see you about
these indexed annuities…?” When will policy ledgers show positive results? Annual point-to-point designed annuities should credit some interest by March, 2001. The reason for this optimism is S&P 500 index values are currently hanging around 1100 and values last March were in the 1100 range, so even a small market boost would turn point-to-point numbers positive. If you break past stock markets movement into blocks almost every multiple year holding period has at least one bad year The road out of the valley for products using index averaging could be longer. The bear rally resulted in a string of second quarter values around 1200. However, any positive effects of the bear rally on the averaging formula have been more than offset by the general malaise following the September drop. This could well mean that any averaging designed products purchased through the Summer of this year will credit no interest on their first policy anniversary.
However, looking at the big picture, an index annuity with a zero interest year or two during its term is the norm, not the exception. If you look at annual S&P 500 returns over the last 50 years and group together consecutive years, every counting period of nine years or greater has at least one down year and the vast majority have two. Indeed, even five, six and seven year index terms almost always contain a bad year. The positive aspect is a zero 2002 return will mean index values are still
well below the previous market high and this sets up a strong case for above
average index growth in subsequent contract years. Fixed Index Annuities Top
“What’s wrong with this Equity Index Annuity? The equity market went up 20% but my Annuity only paid me 14%!” A problem which surfaced early was that when you talked about Equity Indexed Annuities, regardless of how well you expressed the concept and notwithstanding the caveats and return limitations contained within your presentation, many people heard the word “equity” and created unrealistic return expectations in their own minds. I had calls back in 1998 and 1999 from people that were incensed when their index annuity only returned 12% or 14%. Some agents were turning away from index annuities because the credited interest realized was “only” double that of traditional fixed annuities. In fact, index annuities were performing just like they were supposed to, the problem is that the word “equity” distorted return expectations. “My son says I shouldn’t invest in equities. Please cash in my index annuity and put my money in a 3% money market account.” I’ve recently been hearing from some agents that say they can’t sell equity index annuities because their prospects were burnt by the stock market and turn pale when the word “equity” is mentioned. The stock market has been nasty for the last year and a half, many investors have lost all of their paper gains for the last three years and more recent market entrants have lost principal, but no index annuity owner has lost one dollar of premium or credited interest to the bear market during this entire period. Once again, index annuities performed just like they were supposed to by protecting owners from market loss. Unfortunately, agents don’t have lines running out of their offices and into the streets from people wanting to buy this powerful and proven savings tool. One of the reasons for this lack of consumer enthusiasm is because more than a few conservative savers have sworn off equities and don’t want to hear about another equity instrument, even if it is an annuity. The “E” word has created negative false product expectations. No market risk to principal, interest already credited to the policy is protected, minimum guarantees...these features are all associated with annuities not equities. An index annuity is a fixed annuity typically using an optionable market index as a basis for excess interest. Unlike equity investments, bonds or index funds the annuity owner cannot lose principal even if the index declines - no stock market risk to principal is a feature of a fixed annuity. Unlike equity or bond vehicles the annuity owner cannot lose credited interest even if the index drops - protection of credited interest is a feature of a fixed annuity. Although stock markets over time have generally trended higher, there’s no guarantee that an index will be higher than its starting point at the end of a specified period. Unlike any other vehicle out there the annuity owner will receive a guaranteed minimum return which will at the very least give back the premium at the end of an agreed upon period - guaranteed minimum returns are a feature if fixed annuities. In point of fact then, isn’t it more accurate to call these saving vessels Fixed Index Annuities? Fixed Index Annuity does a better job of telling a consumer how these instruments will perform. The appellation Fixed Index Annuity creates realistic return expectation in both good and bad markets. No one should be surprised when the stock market jumps 20% and the fixed annuity with an index credits 9%, and no one should be concerned when the stock market drops because everyone knows a fixed annuity protects premium and credited interest. The index annuity business is in a wonderful position to grow when the stock
market renews its upward climb. The marketing of fixed index annuities lessens
potential market conduct concerns while generating realistic return expectations
in both bull and bear markets. It isn’t exactly the same. Three years ago Mr. Greenspan and other central bankers had managed to avoid a global crisis by easing rates and adding liquidity to the financial markets, thus averting a global recession and keeping growth on an accelerating pace. Today, the economy is probably in a recession and the same tactics used in 1998 are having less of an effect as the markets continue to attempt to digest and move pass the excesses of 1999 and 2000. Falling interest rates and increased market volatility have squeezed index annuity margins with many carriers lowering caps or increasing fees in the last six weeks. A measure of comfort in all of this is we’ve been in the same place before and ultimately prospered. The graph shows the closing daily values of the S&P 100 Option Volatility Index from the beginning of July to the end of October for 1998 and 2001. In both cases as Summer began the index was around a level of 20, rose to the mid 40s and then fell back to a level of 30 at the end of the period. Although similar, you may notice that option volatility in 1998 rose to higher points and remained at higher levels longer than for the same period in 2001. Relative volatility and option prices are at a generally lower level than they were for the same period in 1998. In addition, 10 year Treasuries for both years presented almost identical stories as they began July with yields around 5.3% to 5.5% and ended October at 4.5% to 4.6%.
What this means is November’s index annuity crediting factors will be lower than they were last Summer, but shouldn’t drop as much as first believed. The current situation combines index values that are 25% to 30%, or more, below their all time highs and participation rates that remain competitive. Index annuities are well positioned to capitalize on stock market climbs and generate policy interest that far exceeds fixed rate alternatives. Predicting future index annuity participation factors is much more difficult. In 1998 option volatility remained around October’s level for the next six months, but interest rates began moving back up from October’s low point with 10 year Treasuries yielding around 5.25% by the following March. The stability of option prices, combined with a rising interest curve, enabled many carriers to increase participation rates above November’s levels. In 2001 the economy is weak. Lower interest rates are almost a certainty in the months to come and a lower interest environment puts downward pressure on index annuity pricing components. But, option volatility may subside more quickly than it did three years ago resulting in lower option prices which would help offset lower interest rate pressures and support index annuity prices. The short answer is the future direction of the market and index annuity
participation rates is unknown. The positives are that index annuities are
competitive today and stock market indexes will generate enormous gains by
merely returning to where they once stood. People Have A Little Bigger Check. Thanks to a new 10% bracket and a 1% rate cut most people will have at least $50 more a month in take home pay starting in January.
It’s Easier To Contribute To A Pension Plan. The definition of a “Highly Compensated Employee” has been relaxed and compliance safe harbors expanded. Owners and top employees may contribute more for themselves and receive more of the employer contribution.
It’s Easier For Small Employers Without A Pension Plan To Start One. Most business with fewer than a hundred employees do not offer a pension plan. The usual reasons cited are compliance headaches, administrative hassles and limited participation. The 2001 Tax Act makes it more attractive for a small employer to offer a pension plan.
Your IRA Revenue Base Increases 50% to 75% In 2002. Clients contributing $2,000 to their 2001 IRA may be able to contribute $3,000 in 2002; $3,500 if they were born before Eisenhower became President. Low income taxpayers get a tax credit for IRA Contributions.
Rollover Rapture. Today, qualified plan monies have limitations on where they may go. In 2002, eligible rollovers from IRAs, 403(b) plans and qualified pension plans may be rolled over into any qualified plan accepting rollovers or into an IRA, or into a plan, then into an IRA, and then back into the plan.
In Summary. The 2001 Tax Act is a winner for the financial services industry. People have more money in their pocket and their tax burden should decrease in the years to come. In these turbulent times the 2001 Tax Act even provides an unintended gift to financial counselors... a “Good News” reason to call clients. “Tax Act Opportunities” is from The Advantage Group CE course Using the 2001 Tax Act for Fun & Profit. Although information is believed accurate it is not warranted and is not tax advice. Individuals should always consult their tax advisor for their own situation ---------- FIAs Average 8.7%? Interest Over Last 5
Years We went back and determined what each index annuity “should have” credited, based on their rate and the index movements at the time, for all of the annual reset products on the market from 1997 through November 2001. We looked at the first year return for 52 annual periods each year. Average credited interest was:
---------- By a narrow margin, Midland National ended the Allianz string of five quarters as the largest provider of index annuities. Eight carriers reported increases in sales from the previous quarter. The combined market share of the top ten players is 87%.
Less than one out of every twenty index annuity sales is made by financial institutions and broker/dealers. Jackson National and Keyport are key players in both the bank and wirehouse channels. The average index annuity premium was $33,032 which was ten percent higher than the previous quarter, average premium ranged from $2,186 to $51,725. Less than half of index annuities were purchased with qualified funds. Index annuities with surrender periods of ten years or longer accounted for four out of five sales. The length of the average surrender period has steadily increased over the years. Based on premium, the weighted surrender period on product sold is 11.75 years. The greatest sales growth was in index annuities with an initial premium bonus, and more new product launches include bonuses. Our surveys indicate that the rise of index annuities sales has been somewhat unique, to date, because over half of the new index annuity premiums are coming from non-annuity assets. It would appear the industry is attempting to change this. ----------
Section 529 Plans
The expanded Education IRAis an incredible opportunity for financial service providers. Programs, products, seminars and marketing campaigns will be designed to create annual contribution plans targeting parents, grandparents, corporations, churches, schools and organizations. Although information is believed accurate it is not warranted and is not tax advice. Individuals should always consult their tax advisor for their own situation. ---------- Way back, when I began speaking to groups, I used a chalkboard to help express my ideas to the audience and this worked rather well. I was then told about a new advancement in visual aids called a slide projector. The people pushing this new technology said it would enable me to add color to my presentation and provide visually stimulating graphics, which would help me communicate with my intended audience. I started showing slides to the audience and the images were better than anything I could draw. I had people coming up afterwards and telling me that they had never seen such vivid colors in a pie chart. However, I noticed that the audience involvement when I used my slide presentation was worse than when I simply scratched figures with chalk. I wasn’t getting the group commitment that I used to get.
Slide shows that came with their own audio track were even worse. When my technologically perfect slide show presented both images and stereo sound, I slid down the slope in the audience mind from announcer to usher. In fact, I still have the quarter tip I got for finding one gentleman an aisle seat. Whether one is trying to sell a product or a service or an idea, a large part of the success of that sale is the group perception of the presenter. Visual aids, which enhance the speaker’s position, are good. However, when the medium becomes the message the sales success rate goes down. I quit using slides. I liked the idea of color, so I began drawing on easel pads using colored markers. But sometimes my writing was sloppy and people couldn’t read it. And if the group was large, some people couldn’t see my easel. I then discovered the Overhead Projector. This was a wonderful tool. I could use all of the slide graphics to convey more complex concepts. And I could scribble on the transparencies, thus showing the group that I was indeed the expert because I had the power to change the printed word. Life was good.
for some inexplicable reason, being limited to always expressing thoughts in groups of three (Have you ever seen the Gettysburg Address in PowerPoint? It’s frightening.) In spite of all these other penalties, the real reason I hate PowerPoint is we have taken the biggest negative of a slide show - turning the active teacher-student relationship into a passive announcer-viewer one - and made it worse by further stressing the medium and not the content. The speaker is again the emcee. Many venues attempt to make the speaker’s position even less important by demanding copies of the PowerPoint slide presentation in advance, which are handed out to the audience prior to the performance, so the audience can totally ignore the speaker. I tell these people that I’ll throw in an audiotape, a life-size cardboard cutout of myself, and not come at all, thereby saving the travel costs. Jack Marrion spends his days listening to records on his Philco turntable while petitioning networks to bring variety shows back. ---------- In the third quarter of 1999 the average weighted agent commission received represented 9.03% of premium. Average commission paid by carrier, based on a weighted average of actual product sales, ranged from 3.14% to 14.48%.
The chart shows the weighted average actual commission, sorted by carrier in ascending order, for the third quarters of 1999 and 2001.
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| Copyright 2008 Jack Marrion, Advantage Compendium Ltd., St. Louis, MO (314) 434-6030. webmaster at indexannuity.org. All information is for illustrative purposes only, does not provide investment or tax advice. No index sponsors, promotes, or makes any representation regarding any index product. Information is from sources believed accurate but is not warranted. Advantage Compendium neither markets nor endorses any financial product. |
