Subject: File No. S7-14-08
From: William Schnell

October 14, 2008

Sirs:

I am personally familiar with the debate regarding Fixed Indexed Annuitites (also known as Equity indexed Annuities), and have followed the debate in the press over the internet. My wife has a couple of indexed Annuity products, and we are extremely thankful for them - considering what has happened to our economy. Had we NOT had these instruments, we would be forced to recalculate our retirement age, and put all of our plans, dependent on sufficient funding, on hold. In other words, OUR economy would have shut down.

Had it not been for an independent agent, explaining the safety and flexibility of the products to us, we wouldn't have know the products existed.

We understand that these products are "guaranteed safe annuity products", with a stated minimum rate of return, and that there is no specific or direct risk involved. How is it that you have determined to place them under Security Regulators, where the products are DEFINED by their inherent risks? This makes not sense to us, as consumers.

Make agent's responsible, through fining them or their companies, if they use deception in their marketing or sales tactics. But don't diminish the ability of the vast majority of insurance professionals, who are honest and forthright in their sales practices, from helping individuals like us stay safe from unpredicatable market cycles, and protecting our retirement security. We had been involved in variable annuity proucts in the past, and they were almost impossible to understand.

I know many of our friends have taken advantage of Fixed Indexed annuities to protect their assets as well.

Re-think your stated position - this seems to be a matter of a few bad apples who were not properly trained or supervised...I have seen things like that in the past. Over-regulation is NOT the answer. It would make the problem of risk-averse investors buying high-risk (variable or mutual funds) products, that are significant risks above their ability to assess or accept, much worse.

William Schnell
PO Box 1677
Venice, FL 34284