Capital Markets U.com » annuity

Review Shows Widespread Hike in Variable Annuity Fees

Charles L. Stanley CFP® ChFC® AIF® — Mon, 13 Jul 2009 18:13:54 +0000

A review of 10 of the largest variable annuity providers by Symetra Life Insurance found widespread increases in the fees charged to customers, reductions in guarantees and benefits offered under many riders and sometimes the elimination of an entire guaranteed living benefit offering according to Paul Menchaca in a brief article in financial-planning.com magazine, a publication for the financial planning community. Fees in most variable annuities were already egregious and now they are being raised by “9 out of 10″ of the largest providers of variable annuities according to the Symetra study.

This underscores the importance of what I have attempted to do with Forewarned is Forearmed: How to Purchase an Annuity (or not) You Will Never Regret! In Forewarned, among other things, I related how you can uncover the tremendous costs of most annuities and make an informed decision as to whether or not the guarantees they offer are worth it. In my opinion, they generally are not.

For those interested, you can read more about Forewarned is Forearmed, the first E-Book publication for Capital Markets U.com, at cmubooks.com.

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“Investor Education for Main Street America”

Unsuitable Annuities Tied To Reverse Mortgages

Charles L. Stanley CFP® ChFC® AIF® — Fri, 10 Jul 2009 17:07:50 +0000

As more financial advisors sell insurance, a recent report indicates some could be unsuitably cross-selling annuities in conjunction with reverse mortgages.
The U.S. Government Accountability Office (GAO) report, requested by Sen. Claire McCaskill (D-MO) and released in June, cites recent cases in which reverse mortgages were sold to seniors to get them to inappropriately invest in annuities.
A reverse mortgage, generally limited to persons at least 62 years-old, is similar to a home equity loan or credit line. But the borrower needs no income to qualify. Typically, the loan needn’t be repaid until the borrower moves, sells the home or dies.

For the rest of the story go to…

Unsuitable Annuities Tied To Reverse Mortgages

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“Investor Education for Main Street America”

How to Purchase an Annuity

Charles L. Stanley CFP® ChFC® AIF® — Sun, 28 Jun 2009 22:10:55 +0000

Why would someone purchase an annuity? What goals would one have in order to want to purchase an annuity? How do you know if the insurance company is really a financially strong and sound company? Should you be looking at a fixed annuity? An Equity-Indexed Annuity? A Variable Annuity? A deferred annuity? An immediate annuity? How do you know what all of the costs are for a particular annuity? How do you know if an annuity is a good deal or not? What are the alternatives to an annuity? Should you maybe be making a different investment instead of an annuity?

There are lots of questions, aren’t there?

Forewarned is Forearmed was written to be a consumer protection book. There has been so much abuse in the United States in the past few years that there have been special Alerts issued by the SEC, FINRA and several State’s Attorney General Offices warning about abusive annuity sales efforts. Forewarned is Forearmed will provide you with both factual data about annuities and some recommendations for how to evaluate an annuity offering and decide if it may be right for you.

To get more details about Forewarned is Forearmed, visit the special Forewarned is Forearmed page where you can learn more and add it to your shopping cart.

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“Investor Education for Main Street America”