November 14, 2008
Hi Friends,
Indexed annuities are being marketed as riskless investments in the stock market. They compete against complex investment strategies such as the purchase of put options. Their fee structures and the methodologies for calculating returns are byzantine and beyond the comprehension of most investment professionals – let along consumers. They are being marketed to elderly individuals for whom they are indisputably inappropriate. They are not being adequately regulated, and the consuming public is being injured as a consequence.
Recent events within the financial system have highlighted the need for the modernization of regulation to better reflect the current face of investment vehicles, strategies, and services. I believe that your constituency will be well served by your oversight of this type of product, and I encourage you to adopt regulation over it.
With kindest regards,
Jay Hutchins, MS, CFP®, AIF® , CDFA®
MS Graduate Degree - Personal Financial Planning
Certified Financial Planner® Professional
Accredited Investment Fiduciary®
Certified Divorce Financial Analyst®
Registered Advisor, National Association of Personal Financial Advisors (NAPFA)
Member, Garrett Planning Network (GPN); Financial Planning Association (FPA)
Comprehensive Planning Associates, Inc. is a Securities & Exchange Commission Registered Investment Advisor