Annuity language intentionally misleading
February 14, 2020 by David Moon
The Securities and Exchange Commission won’t like this next paragraph, but read the entire thing, not just the tantalizing “promises” in the first sentence.
If you hire me to manage your money, I promise to always outperform the market, never lose money and that you will never be fat. You just have to let me define the terms “the market,” “outperform,” “lose money” and “fat.” As the old lawyer joke reminds us, you can name any price you want in a transaction, as long as I get to define all of the terms.
Click HERE to read the full story via Knox News
Wink’s Note: “Never lose money and still earn stock market returns when the index goes up?” Indexed annuities provide limited interest based on the performance of a stock market index, while still promising no risk of market-based losses. There are 486 different indexed annuities that don’t use hybrid indices.”Vanilla variable annuity?!?” It is Security Benefit Life. It is insurance, not an “investment.”
