July 10, 2008
I initially responded to this SEC action without reading the feedback left by others on the subject. While initially I was more than opossed to the action and potential ruling, being a licensed securties professional (series 7, 66) I knew ultimately that my job was not going to be impacted significantly and I objected based on principal alone.
Having read the many responses of my collegues from many disciplines, I am more resolved to fight this proposed action The relative "shmear" campaign against this product (long surrenders, high compensation, high complexity) speaks to the ignorance (at best) of the those writing. I know of very few products (EIA's) that do not allow customers to annuitize after 5 years for 5 years...commonly known as 5 by 5...irregardless of long surrenders (a little yankee lingo there). Nearly all will do 5 by 10 or for life. If being used for qualified money, please tell me which security product is best recommended for seniors that would allow them to withdraw all their money without penalty...from the IRS?? Fact is, in practice, nobody gets their money out all at once and income is the desired outcome for retirment products. Remember, 401(k)'s and their cousins were meant to replace pensions, INCOME, not savings accounts
One CPA in FL wrote "please help protect our seniors from these seminars and products". Give me a break. Sounds like he is upset that these guys are taking marketshare from his pompous ass Looks like the CPA program did nothing but give you some credibility to charge a fee in spite of performance. Went did "credibility" every help a client solve for lifetime income and protect their savings from market risk??