Kiplinger: Variable Annuities: Guaranteed Income, With a Catch
Kiplinger’s recent article, “Variable Annuities: Guaranteed Income, With a Catch” discusses the many problems of traditional variable annuities. As the article states, variable annuities are not for everyone. Many introduce higher fees and complicated formulas that most investors do not understand.
This complexity of traditional variable annuities allows commission-only salespeople to take advantage of investors, by glossing over fees, surrender charges and complicated rules—which create conflicts of interest by earning commissions, perks and kickback. However, there are some variable annuities that break these barriers and offer more simple and straightforward solutions. The article uses Jefferson National’s as an example of a low cost, simple and transparent platform that is sold through independent advisors who charge separate fees for their services. Unlike traditional variable annuities, this transparency allows advisors to sit on the same side of the table as their clients.
Read more, here.