November 13, 2008

Subject: Indexed Annuity Sales Comments 11-13-08 s7-14-08

I am a professional financial planner and a member of FPA and I want you to know that I support the proposed rule that would allow for SEC oversight of indexed annuity sales in addition to state oversight by insurance commissioners.

I have been working in the financial services industry since 1981. I am a licensed to sell insurance in the State of Colorado and I have my general securities license. II am a Certified Financial Planner® (CFP) and Chartered Life Underwriter (CLU) and President of Irving Planning & Investments, Ltd., an investment advisory firm registered with the SEC.

I am appalled at some of the statements made by so called retirement planners and experts in their radio advertisements and during their radio call in shows on Saturday afternoons regarding indexed annuities. These are peddlers of product posing as experts. They mislead people with the supposed guarantees of these annuities.

I support the rule for the following reasons:

a. the rule is a reasonable and balanced approach to enhancing state enforcement efforts
b. the vulnerable aging population needs additional protection from aggressive sales agents
c. consumers are often mislead regarding the benefits of an indexed annuity
d. liquidity risks, surrender charges, and other suitability factors are not always clearly disclosed or understood
e. not all states have adopted suitability standards for annuity sales, nor do most insurance commissioners have adequate enforcement resources available
f. some agents misrepresent themselves as offering a single retirement solution when in fact retirement planning is generally a complex planning process
g. many agents don’t even understand the product they are selling; they are uneducated in how the product actually works

Let’s make certain these agents are up to speed regarding insurance and investment products and that they act ethically when it comes to advising people regarding their money.

Michael J. Irving, CFP®, CLU Irving Planning & Investments, Ltd.