July 13, 2008
I sell mutual funds, fixed indexed annuities and fixed annuities in the 403b Tax Sheltered Teacher Marketplace, i.e. at public schools. When fully disclosed and educated the client predominately buys fixed indexed annuities. The reason and what they are buying is the guarantees. The products are not viewed as mostly high grade bonds with some options, they are viewed as an insurance company making guarantees. They are not viewed as a security, they are viewed as an insurance compnay product. If they knew they were buying a security without guarantees, they would not buy it. They specificly do not want to be in the market. It should be an insurance compnay product because the client thinks of it as an insurance company product.