July 30, 2008
Why would Fixed Index Annuities be a SEC governed product? Fixed Index Annuities are guaranteed never to lose a dime of the principal. Stock Market products never offer this guarantee, in fact they have in very small print on the T.V. ads---your money is subject to loss from stocks decreasing in value. The stock brokerage houses want this product to be governed by the SEC because of the Guarantee only. This product (Fixed Index Annuities) allows clients the opportunity to receive higher gains by linking to the growth of an Index, but without the downside risk to their money. What SEC product allows clients the opportunity for a Lifetime Income? (None) What SEC product charges no fess or commissions to the clients---None. Make sure you understand what I just said Clients have no risk to their money, and they are charged no fees or account charges. What stock market product, stocks, bonds, mutual funds, etc. have no risk, and have no fees or charges? You are correct---None.
This is an insurance product, and not a risk product. SEC regulate your own houses (brokerages), and leave this product to the insurance companies.