Comments on: On Vanilla Products http://alephblog.com/2009/09/26/on-vanilla-products/ Helping Institutions and Ordinary People Invest Better by Focusing on Risk Control Tue, 16 Mar 2010 13:31:55 -0400 http://wordpress.org/?v=2.8.4 hourly 1 By: Harper Capital http://alephblog.com/2009/09/26/on-vanilla-products/comment-page-1/#comment-23404 Harper Capital Wed, 30 Sep 2009 18:43:22 +0000 http://alephblog.com/?p=2044#comment-23404 David, doesn't Vanguard and Fidelity offer a low fee VA product using in house funds? At some point I another low fee insurace offering was out there (under 50bps+fund fees) for no fee planners, but cannot remember the name for the life of me. I think they worked with Rydex to grab traders assets. I agree it's a great way to retain sticky assets. David, doesn’t Vanguard and Fidelity offer a low fee VA product using in house funds? At some point I another low fee insurace offering was out there (under 50bps+fund fees) for no fee planners, but cannot remember the name for the life of me. I think they worked with Rydex to grab traders assets.

I agree it’s a great way to retain sticky assets.

]]> By: David Merkel http://alephblog.com/2009/09/26/on-vanilla-products/comment-page-1/#comment-23387 David Merkel Mon, 28 Sep 2009 14:12:12 +0000 http://alephblog.com/?p=2044#comment-23387 Varada, you are right -- this is a product to be marketed by the mutual funds themselves. "Sir, would you like the T-class shares? Higher expense charge, but they are tax-deferred. Otherwise the same as the class of shares you would ordinarily buy." The mutual funds make their money off of their ordinary fee structure, and gain stickier business as a reward. Also could be used by no fee financial planners. Varada, you are right — this is a product to be marketed by the mutual funds themselves. “Sir, would you like the T-class shares? Higher expense charge, but they are tax-deferred. Otherwise the same as the class of shares you would ordinarily buy.” The mutual funds make their money off of their ordinary fee structure, and gain stickier business as a reward.

Also could be used by no fee financial planners.

]]> By: Varada http://alephblog.com/2009/09/26/on-vanilla-products/comment-page-1/#comment-23370 Varada Sun, 27 Sep 2009 12:23:54 +0000 http://alephblog.com/?p=2044#comment-23370 David, Regarding your comment about wrapping a variable annuity for 40bp,it is impractical simply because most of the current charges on a VA wrapper(say 100bp out of 140 bp) goes to the salesman who sold the VA to a customer.That is why VA wrappers are expensive.Selling it for 40bp will require a totally new approach to distribution. David,

Regarding your comment about wrapping a variable annuity for 40bp,it is impractical simply because most of the current charges on a VA wrapper(say 100bp out of 140 bp) goes to the salesman who sold the VA to a customer.That is why VA wrappers are expensive.Selling it for 40bp will require a totally new approach to distribution.

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