November 13, 2008
I understand the organization "FPA" claims to support the SEC Rule on Equity Indexed Annuities. The grand majority of the FPA members are stock brokers/mutual fund salesmen who are also Financial Planners. Thus they have an interest in the SEC maintaining it's bad stand on EIA's due to misinformation about Equity Indexed Annuities.
Of what I saw within the language that precipitated this Rule is wrong. The clients money is never at risk and these financial instruments provide for future incomes which are needed for retirement. The retirement incomes are guaranteed by the insurance company. True very bad sales practices have occurred with the selling of EIA's, but the discipline of these bad agents should come from the insurance department of the state in which the violation occurred. EIA's are NOT securities, funds are never at risk and positive growth is derived from the clients account.
The FPA does not speak for all CFP's I can assure you.
Bill Hagen, CFP
Houston, Texas
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Bill Hagen, CFP