July 14, 2008
Dear SEC,
The risk issue with Equity Indexed Annuities is confusing to me.
Equity Indexed Annuities or Traditional Fixed Annuities alike give consumers safety with a guarantee of principal along with some sort of guaranteed rate of return.
There is no market risk to their principal as with any stock market security. You are trying to compare apples to oranges and put them in the same category.
Fixed and Indexed Annuities give consumers safety of principal like bank CD's. Consumers need stability in their nestegg and not a roll of the dice in the market.
Thank you.
Sherry