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Farm Bureau TN

Old 11-22-2016, 07:45 PM
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Default Farm Bureau TN

Just received a letter in the mail. FB said they are no longer taking my IRA contributions. In a nut they state that it is no longer beneficial to them. Anyone else get a letter like this from FB???
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Old 11-23-2016, 04:40 AM
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It could have something to do with new DOL rule that starts getting implemented early next year. It is forcing a number of companies to change business practices.
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Old 11-23-2016, 05:15 AM
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Farm bureau is very tight on it's regs .I had an "amicable" divorce from them ...
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Old 11-23-2016, 05:16 AM
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Fidelity or Vanguard will be glad to help you.
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Old 11-23-2016, 06:29 AM
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I have my IRA with FB of SC so I HOPE NOT.


Have had it with them for 25 yrs and that guranteed 4% rate is sweet, NO ups and downs at all

I have a lot of FB agents/managers throughout SC and I will ask couple of them but so far I have not seen anyting about them not continuing IRA's

I don't understand WHY they would want out of the IRA market, pretty secure cash flow stream for any insurance company to work with and I am sure they make a lot more than they pay out

Just text one of my clients to see what he said, branch manager in one of the upstate SC counties
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Old 11-23-2016, 06:46 AM
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Originally Posted by tprice View Post
I have my IRA with FB of SC so I HOPE NOT.


Have had it with them for 25 yrs and that guranteed 4% rate is sweet, NO ups and downs at all

I have a lot of FB agents/managers throughout SC and I will ask couple of them but so far I have not seen anyting about them not continuing IRA's

I don't understand WHY they would want out of the IRA market, pretty secure cash flow stream for any insurance company to work with and I am sure they make a lot more than they pay out

Just text one of my clients to see what he said, branch manager in one of the upstate SC counties
I work for NC FB and all IRA/annuity products are handled by Southern FB in Mississippi for us down south. TN does not fall under SFB's territory. Nothing has changed with SFB annuity wise. Sorry OP I cant help with TN rules and regs.
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Old 11-23-2016, 07:16 AM
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Just got off the phone with FB they stated that they are dropping to 1% IRA, agent stated he would be glad to re-write the contract at that %. However what I have contributed under the old contract will still draw 3%.

Any suggestions on another IRA I know 3% now days is almost unheard of. Thanks for the replies.
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Old 11-23-2016, 09:41 AM
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Originally Posted by js118 View Post
Just got off the phone with FB they stated that they are dropping to 1% IRA, agent stated he would be glad to re-write the contract at that %. However what I have contributed under the old contract will still draw 3%.

Any suggestions on another IRA I know 3% now days is almost unheard of. Thanks for the replies.
Yeah the newer annuities dropped their "floors" to 2%, then 1.5% now 1% guarantees due to a low interest rate environment. I remember back in 2004 we had a 5% guarantee and were paying 6.5%. Those days are long gone!
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Old 11-23-2016, 10:51 AM
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Originally Posted by appfan99 View Post
I work for NC FB and all IRA/annuity products are handled by Southern FB in Mississippi for us down south. TN does not fall under SFB's territory. Nothing has changed with SFB annuity wise. Sorry OP I cant help with TN rules and regs.

Thanks, texted one of my clients and he told me same thing.

4% are great BUT over the long haul I have never lost a penny in my IRA and keep maxing it out every year.

Funny thing is when I started they mentioned it would NEVER go below 4% and that sound very strange at the time and thought nothing of it UNTIL the mid 90's.
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Old 11-23-2016, 11:16 AM
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Originally Posted by tprice View Post
Thanks, texted one of my clients and he told me same thing.

4% are great BUT over the long haul I have never lost a penny in my IRA and keep maxing it out every year.

Funny thing is when I started they mentioned it would NEVER go below 4% and that sound very strange at the time and thought nothing of it UNTIL the mid 90's.
Yeah they cant change the rate on the older contracts but the new ones match current rates. Right now we are paying 1.5% with a guaranteed 1%. Doesnt matter if its qualified or NQ.
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Old 11-23-2016, 01:54 PM
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Originally Posted by js118 View Post
Just got off the phone with FB they stated that they are dropping to 1% IRA, agent stated he would be glad to re-write the contract at that %. However what I have contributed under the old contract will still draw 3%.

Any suggestions on another IRA I know 3% now days is almost unheard of. Thanks for the replies.
Most people would say that a guaranteed 3% rate is a lousy product. there was a time when you could get guaranteed 10% interest rates. (My dad had one with Lincoln so I know it's true)

With the zero rate environment we are in, a 3% interest rate doesn't seem too bad.

If they are only writing 1% interest rate products, they must expect a negative rate environment in the future.

I got a 5% guaranteed rate product about 10 years ago. I didn't like the low rate at the time but when compared to the products on the market today 5% isn't so bad.

My suggestion is you keep the old money in the product you have and get a new product to invest new money into unless you can't find another 3% guaranteed rate product. Selling and moving the old money into a different companies product will cost you money in sales (big sales charge) and admin charges. Keeping it where it is will only cost the annual admin charges.
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Old 11-23-2016, 07:11 PM
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Gonna keep the existing 3%...no point in moving it to only get a guarantee of less than 3. Want to keep contributing but really think I can beat the 1%.I hope to anyway!!!
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