November 13, 2008

Subject: SEC oversight of indexed annuities s7-14-08

I urge you to adopt the position that the SEC should have oversight of indexed annuities. I am a fee only financial advisor. We frequently see clients with indexed annuities. We frequently see situations where people do not understand what they have purchased. The majority believe they purchased a cash flow for life. Generally they are not aware that the indexed annuities are subject to the same risks and volatility of the stock market. Most have adequate life insurance before purchaing the annuity. They do not realize that a component of the annuity is life insurance. Annuities are not considered when they select other investments. Accordingly there asset allocation often does not fit their circumstances. These annuity transactions should be under the oversight of the SEC.

Joseph A. Smith, CPA/PFS, J.D., A.E.P.