"Don" <dwzimm[at]telus.net> wrote in message news:iNhVe.225808$9A2.62672[at]edtnps89...
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Love that, "This Annuity Contract may be injurious to your retirement".....................
Cal Lester CLU

"Elle" <elle_navorski[at]nospam.earthlink.net> wrote in message
news:OQgVe.264$Gy3.138[at]newsread3.news.pas.earthlink.net...

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Thanks, Elle and others. I guess it is sort of like saying fireworks are
risky but not banning their sale; use them responsibly. Maybe a sterner
warning on the annuity documents would be a good idea, similar to the
warnings on cigarette packages.

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This may be the problem. Scott Burns, the financial writer for the
Dallas Morning News, has written a couple of worthwhile articles on
variable annuities:

"Seven Sins of Variable Annuities"
http://www.dallasnews.com/sharedcont....2c86e1eb.html

"Saving Option Just Falls Short"
http://www.dallasnews.com/sharedcont....98b11dec.html

These are well worth reading for someone who wants to be "informed."

Dave Dodson

"Cal Lester" <cal-lester[at]comcast.net> wrote
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He sounds perfectly calm to me. Maybe you're overreacting a wee bit?

Don, the internet has many reports on variable annuities. In particular, you
might want to google for at least two SEC warnings on them in the past five
years or so. The SEC warns strongly that variable annuity customers have
made complaints about the marketing of these products and tends to agree
with the customers. But it doesn't flat-out condemn them; it cautions
(again, strongly) that a consumer must consider their details closely.

It seems one particular area of condemnation is the use of variable
annuities in vehicles that are already tax-deferred. E.g. the 401(k). One
cannnot "doubly" tax defer in this fashion, so salespeople trying to market
variable annuuities in a 401(k) or traditional IRA package are, for the
greater part, highly unethical and not being clear about the waste, for the
greater part, of having variable annuities in a 401(k).

Whoa Don, cool down a bit.

Variable Annuities are NOT bad at all....................

They (as any other investment tool) are VERY GOOD when used properly.
The problem lies in the complexity of the product, and the fact that "some"
sales-people sell them to the wrong clients.

When a "knowledgeable" agent sells a VS./A to an "informed" client,
then wonders can happen. There are many benefits to the VS./A contract,
as well as many pitfalls. The old adage still applies."let the buyer beware".
Cal Lester CLU



"Don" <dwzimm[at]telus.net> wrote in message news:Ai6Ve.238520$tt5.177678[at]edtnps90...
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Variable Annuities in of themselves are not the problem, but how they are
sold is. Like the used car salesman that is only interested in the sale, a
variable annuity can be misrepresented and sold to people that they are not
suitable.

With surrender charges that can last years, they are not suitable for a
person that will have near term liquidity issues, yet they will be
misrepresented as a "CD Substitute" which also glosses over some of risk
issues as well.


"Don" <dwzimm[at]telus.net> wrote in message
news:Ai6Ve.238520$tt5.177678[at]edtnps90...
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In this and several other newsgroups, I have read a lot of negative opinions
about variable annuities, and the only favorable comments I can recall were
made by people who sell them. If these products are so generally condemned,
why are they not prohibited by law? In view of all the bad publicity, does
anyone still buy them? Are government regulatory agencies lax?