Let's spot the errors, shall we?

[DHK]

I probably should've put this in the CFP forum, but since this deals specifically with FIAs, it's good here.

It's no wonder that the "almighty, fee-only" people don't understand annuities with articles like these.

How to avoid hidden pitfalls in fixed-index annuities

Bob Morrison... is a moron:

Bob Morrison of Greenwood Village, Colorado-based Downing Street Wealth Management agrees, noting the difficulty of reading and understanding offering prospectuses that run up to 300 pages long.

“I tend to stay away from them because of the cost structure,” he says. “They tend to have high internal costs, and it’s complicated to understand the internal costs.”

Only variable products are sold by prospectus. As far as "high internal costs" those are reflected by the current cap rates and optional riders - such as enhanced death benefit or lifetime income.

Sheryl Moore commented the following:

My attorney doesn't allow me to respond to the ignorant any longer. However, I did already tweet about this one.

My comments?
1. Indexed annuities are not sold via a prospectus, but by a contract, which averages 26 pages.

2. So weird- an actuary who worked at Northwestern Mutual who hates indexed annuities…bizarre. *Insert sarcasm here*

3. And so strange that a Northwestern Mutual actuary would bash indexed life?!? *Dripping with sarcasm*

4. Note that Northwestern Mutual does not sell indexed annuities, nor indexed life. This may influence their views on these products.

5. Indexed life doesn’t cap returns at a rate higher than indexed annuities because they are “overcharging on mortality expenses and other fees.” Why are Indexed Life Caps So Much Higher Than Indexed Annuities'? - Wink

sjm

Obviously, if you are a subscriber to some of these trade publications, you might want to reconsider. Sometimes FREE is simply too expensive, and why feed publications with my subscription (and advertising circulation) when they don't approve of my business model?

I am no longer of the opinion that FIAs are "oversold", but they could be misrepresented. FIAs are a WANT product - either you want what it does, or you don't, as long as they are explained properly.

 

[KRobby]

Good to see Sheryl Moore is still at it. These people are so crooked with their agendas.
lol'd @ #4

 

[Stephen]

This article is a perfect example of bad journalism. If Scott Witt doesn't think that FIA's are a viable product , and that they are oversold, that's fine. Let him state his credentials and opinion. But they should have also interviewed a dually licensed advisor that does use FIA's (when they fit) to provide counter points, because there are several. Instead they quoted a couple of goober advisors.