Fiduciary Rule Regs May Cut $5,000 in Annual Fees per Annuity Pro: DOL
April 30, 2024 by Allison Bell
The Labor Department’s new retirement investment advice fiduciary definition could cut annuity industry fee revenue by an average of about $3,100 to $5,100 per annuity agent, broker or advisor per year.
The definition could affect a total of about 1,577 career insurance agents, 86,410 independent agents and brokers, and 16,398 registered investment advisors, and the industrywide revenue hit could be about $325 million to $530 million per year over the next 10 years, Labor Department officials estimated, based on separate impact analyses provided by Morningstar and an academic paper prepared by a team of researchers led by Vivek Bhattacharya.
Click HERE to read the full story via Think Advisor
Moore on the Market: “Over a 10-year period, asset growth averaged 3% at the variable annuities and 6% at the fixed annuities. That compares with 10-year asset growth of 2.6% for ordinary mutual funds and 5.8% for all types of assets included in the analysis.”
Fixed annuities have outperformed VAs?!?
Shout out to my girl, Wendy Swanson, RICP, CLTC, NSSA Certificate Holder at Senior Market Sales, for the article. -sjm
