Annuity/Investment Laws

[scagnt83]

Semantics aside, most state Securities Regulators define an Investment as a Security. So does FINRA & the SEC. So do many state DOIs. End of story.

 

[Newby]

This is modern liberalism at its finest. Of course a fixed annuity is by definition an investment. You put money in to grow it. From Merriam-Webster: Definition of INVESTMENT for Kids 1: the act of putting out money in order to gain a profit Now I know these stupid security laws don't allow you to say 'that word' if you hold an insurance license only. I wonder how many real estate agents sell 'investment' properties? Or how many pawn and coin shops sell coins or metals that are good 'investments'? I know a wine salesman that has bought cases of adult grape juice as a solid investment. He tells me he has made some great profits selling the wine later. How does a plumber make money if he can't invest in pipes and whatever else and turn around and sell it for a profit? I know I invest money back into my business. What am I supposed to say in that case?

You realize all those examples you give DO fit the definition because you are putting your investment at risk. That's what they say an investment is.

An annuity doesn't fit because your principal is never at risk of loss if the policy owner and the insurance company carry out the terms of the contract.

I agree that it shouldn't be that way. But it is that way.