Investment advisors consider too complex

Jul 9, 2008


    URDRWHO Guru

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    Found this as reasons why Investment Advisors consider the FIA too complex for people to understand:

    1. Getting them to fully understand their newly acquired 10-year equity indexed annuity

    2. A 3% lifetime contract minimum guarantee on 90% of premiums

    3. Indexed to the S&P 500 at a 90% participation rate

    4. A 9% cap on a point-to-point reset

    5. A sliding surrender charge

    6. A 10% annual free withdrawal option.

    Investment Advisors must really have a low opinion of the general public because I have yet to meet someone that can't understand 6 working arrangments.

    I guess the IA folks would never want to allow John Q Public to buy a home because of the complexity of the settlement.

    My ex-brethern in the securities market have yet to make their mark. At least with me.

    If they feel that there are abuses then there are also abuses in their own house. Forgive me but is not a variable product a registered product.

    NASD Cracks Down on Equity-Indexed Annuities - Investment Advisor Magazine

    "The NASD is attempting to rein in what it says are abusive sales practices of equity-indexed annuities (EIAs) and deferred variable annuities."

    How many FIA contracts don't gaurantee your principal? One, two, three, ten..........none? What do they mean "some."

    "With EIAs, an insurance company usually guarantees a stated interest rate and some protection from loss of principal."

    Sigh.................I'll keep pounding on this until they stop printing misleading and often wrong information.

    My goodness a senior magazine explaining an EIA

    Beat Inflation.pmd

    Senior Citizens VOICE
    The Official Publication of the N.C. Senior Citizens Association Welcome to the North Carolina Senior Citizen's Association

    They mention the FIA is designed with guarantees that you will never lose any of your principal from stock market risk.

    They seem to be a for real association and not a hidden marketing organization but that has yet to be deterined.

    Welcome to the North Carolina Senior Citizen's Association
    Last edited: Jul 9, 2008
    URDRWHO, Jul 9, 2008