September 19, 2008
It is my opinion that most Equity Indexed Annuities represent one of the biggest frauds being perpetrated on the investing public that we have ever seen. The 'caps", participaation ratios, long surrender periods, and annuitization requirements for beneficiaries are some of the worst features of these instruments. It is these types of instruments that give investment professionals a bad name. EIA's should be banned or at the very least require a Series 7 license in order to sell.