July 15, 2008
In light of this stock market meltdown the fixed indexed annuity are a godsend for older clients. I have been doing FIA since 2001 and I have never had a complaint. On the other hand, I see many mutual fund statements that are and have been bad for the senior market clients and no one seems to want to help a client when the losses occur. I had a client 70 yrs old has lost 250k in her mutual funds To say that the SEC is going to now regulate FIA is another way of saying the the mutual fund system is old fashioned and the only people making money in mutual funds are the mutual fund companies themselves so lets stop the FIA's before everyone starts investing in them.
Although there are abuses in the FIA business but in all the problems with FIA's it is still very minimal to the securties business so to lump them all together is ridiculous. The SEC has an ulterior motive rather than protecting the elderly. What is worse a mutual fund that has lost $250k or a $25 surrender charge in a FIA????????
Michael S. Busico