November 13, 2008
I am a member of the Financial Planning Association. I support the proposed rule to allow SEC oversight of indexed annuity sales.
I have been a Certified Financial Planner since 1982. I have seen many seniors who have been sold these annuities and who have no understanding of their provisions and limitations. Elderly couples in their 70s who purchase annuities with 10 and 15 year surrender charges. Surrender charges of as much as 15% of account values (not to mention market valuation adjustments).
These vehicles are often sold as a can’t-lose, no-risk way to participate in the stock market. There is no such thing and as such no investment should be sold purporting to do so.
Thank you.
Michael C. Brady, CFP