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LPL Financial's $28 million cash purchase of AdvisoryWorld solves one big problem: Now it can make sure the proposal software includes annuities in its proposals

The Fort Mill, S.C.-based IBD is the No. 1 annuity distributor in the United States but it still cranks out proposals focused on stock/bond allocations

Author Brooke Southall December 4, 2018 at 10:46 PM
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Burt White: We'd love to integrate annuities.

Kerry H Pechter

Kerry H Pechter

March 22, 2019 — 5:58 PM
This article seems to assume that annuities will be a growing part of an RIA's business. While many are pitching annuities to RIAs, no one should assume that many RIAs will bite. A new study of advisor attitudes to annuities from Howard Schneider of Practical Perspectives (interviewed in this week's issue of <a href="http://RetirementIncomeJournal.com" rel="nofollow">RetirementIncomeJournal.com</a>) shows annuity action is concentrated in the commissioned, independent broker dealer advisory channel. Fee-based RIAs have little interest in them, and few of their HNW clients worry much about running out of money. David Lau at DPL Financial, David Stone at RetireOne, and Craig Hawley at Nationwide Advisory Services are trying their best to change that. But aside from RIAs who use inexpensive annuities to transfer their clients out of existing expensive annuities, RIAs overall are not streaming towards them. As Schneider points out in RIJ, many RIAs purposely left the b/d world to stop selling packaged products. Also, the term "annuities" should not be used generically. An income annuity is very different from a fixed or variable annuity with a living benefit rider, for instance. Different annuities serve different purposes and have different internal and external economics. Schneider also said RIAs won't recommend products they don't understand; few people understand annuities well. (Full disclosure: I wrote 'Annuities for Dummies.')
Brooke Southall

Brooke Southall

March 22, 2019 — 6:04 PM
Interesting. I don't know whether you are right or not. What I admire about Lau, Stone and Hawley is that they are putting their money and efforts where their mouths are. If RIAs and annuities continue to make news, it sounds like you'd be a good source.
Kerry H Pechter

Kerry H Pechter

March 22, 2019 — 8:17 PM
Asset managers and life insurers want to know what RIAs are thinking. Their future depends on it. I just started following RIABiz.
Brooke Southall

Brooke Southall

March 22, 2019 — 8:30 PM
I'm an annuity dummy and you aren't so ...

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Mentioned in this article:

LPL Financial
RIA-Friendly Broker-Dealer, RIA Welcoming Breakaways, Advisory Firm
Top Executive: Dan Arnold



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