November 13, 2008
I am John E. Baker, CFP and a member of the FPA and NAIFA. I would like to write in support of the above rule about SEC oversight of indexed annuities. I have over 25 years of experience in our industry and have seen many abuses of these annuities. Once such case involved a 68 year old woman who was sold a “better” annuity because it “could get stock market returns” when she already had an indexed annuity. Since the people selling these annuities certainly discuss the stock market, they should have to have the knowledge to describe it accurately. People, especially the older people that seem to be targeted, cannot understand the contracts and are often left with ridiculous surrender charges and annual costs. Thank you for taking the time to review this letter. John E. Baker