To download my 14-page White Paper detailing specifically why using a 20% bonus FIA (Fixed Indexed Annuity) to “pay the tax” does NOT work, click on the following link:
Bonus Download—11-Page Summary
Breaking Down Roth Conversions Software Used by this Platform
The second download is a running commentary of a software webinar I watched. In this piece, I indicate everything I think is wrong with the software/sales approach.
Bonus Webinar—August 13th at 3:00 p.m. EST
If you sign up for the downloads, you will also get access to the webinar where I will explain and show you with our OnPointe Roth Conversion app why this concept doesn’t work!
https://advisorshare.com/bonus-fias-roth-failure
The Sales Pitch
Advisor: Client…how’d you like me to show you a concept where I will find you the money to pay the taxes on a Roth IRA conversion?
Client: That sounds awesome. Please tell me more!
Advisor: The concept uses a unique type of annuity. It’s an annuity with a 20% bonus on premiums paid. That 20% bonus will be used to pay the taxes on your conversion.
Client: That sounds great. Please tell me more.
Why this Concept is a Mathematical Failure!
Reason #1—Roth IRA conversion DOES NOT work for most clients (especially for clients who are projected to run out of assets near their life expectancy).
Reason #2—the investment rate of return is a key factor when determining if a Roth IRA conversion will work (and the expected return of a 20% bonus FIA is awful).
6.25%—the annual pt-to-pt cap on the 20% bonus FIA used in this concept.
10.25%—the annual pt-to-pt cap on a “good” FIA product.
FYI, the carrier that offers the bonus product has a history of dumping caps on renewals.
Rate of return difference between a 6.25% cap and a 10.25% cap product?
2%-3% annually, depending on the time frame chosen.
Because the rate of return when using a bonus annuity is expected to be 2%-3% less than the non-bonus FIA, it is doomed to fail using the bonus annuity.
There is more to the story, but that’s why I created the two downloads and the webinar.
Why do I know that bonus FIAs don’t work for Roth IRA conversions? Because I’ve had an entire programming team working on Roth IRA conversion software for over a year.
When building OnPointe’s conversion app, it became clear that NONE of the Roth conversion apps or even retirement planning software in the industry calculates the numbers accurately.
If you are using the following and think you are running accurate numbers for clients, you are not!
E-money; Money Guide Pro; Right Capital; Retire Up; Covisum;
Stonewood; Income Lab; Bucket Bliss; Retirement Analyzer, etc.
The list of programs/apps is endless, and because we’ve reverse-engineered the math of all of these programs, we know they are NOT accurate.
30+ Variables
To download a list of the 30+ variables that MUST be taken into consideration to run “accurate” Roth conversion numbers, click on the following link (no sign-up form):
https://www.uploadedimages.net/content/PDFs/Chapter.2.variabless.pdf
Don’t believe me when I say no programs calculate conversion numbers accurately?
Go to Run My Roth and you can run your own OnPointe Roth IRA conversion numbers.
We built a consumer lead gen app that advisors can put on their websites, Facebook, LinkedIn, etc. so clients/leads can run their own numbers and use it where their data is saved in the advisor’s system. It’s a killer lead gen tool and a great way to collect financial data on clients/leads.
