July 24, 2008
I strongly oppose what the SEC is doing and I have suspicions why Fixed indexed annuities have no principle risk and are much safer and better for the conservative investor. For example, I met with a 70 year old woman who had $2.25 million dollars in a mutual fund IRA account and she lost $250k in six months. She was afraid to let her family members know and the broker is not at all liable for this drop in funds. Why is a 70 yr old woman still have the bulk of her assets in the market? Where is the suitability and the SEC when this occurs? This ruling is nothing more than protection and preservation of the broker dealers balance sheet. The SEC has enough trouble trying to control their own people and now they want to stop a very good system that can be very devastating.
Michael S. Busico-CFP