Home Invest Do Not Invest In An Equity-Indexed Annuity

Do Not Invest In An Equity-Indexed Annuity

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One of the failures of financial regulations, including the Department of Labor Fiduciary Rule, has been the problem of addressing actual wrongdoers. While pro-regulation consumer groups have a lot to say when it comes to investment fees, they have made virtually no progress that I can see in reigning in one of the industry’s worst offender – Equity-Indexed Annuity (EIA) firms.

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In fact, I think these investments may just be the modern Ponzi scheme based on a client review that I’ll detail below. It is impossible, in my opinion, to believe they will pay out the benefits we confirmed with multiple representatives without assuming they are being paid for by future investors.

To start the case against the EIA industry I typically detail my experiences with the culture of the firms and agents. While you may find an agent whose personality you like, it’s important to hear real examples of how you or your widow may be treated during vulnerable times.

I have a widow as a new client that we determined does not need the lost growth potential of approximately 20 annuities her husband purchased – or the expensive income or death benefit riders since she lives on her Social Security payment. For the last four months we have been trying to remove her money from the grasp of a widely used EIA provider.

The client here has spent easily a dozen hours on the phone with company representatives trying to confirm the processing and receipt of paperwork, some with me, but most on her own due to her concern over how the company holding her money is not being straightforward with her. (Note: She called the company directly and not the agent because the agent was visibly angry with her wanting to move money out of these contracts and told her he would not assist with her inherited accounts; this emotional manipulation is too common in my experience).

Together we found after 30 days and many calls that the firm – after initially denying receipt of the paperwork – did, in fact, have the withdrawal requests, but gave itself a 45 business day deadline to look at the paperwork.

After what felt like 45 business days, in some cases we were told that paperwork was not complete, in some they said it was not all received, and in others&nbsp;they claimed our instructions were confusing.

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One of the failures of financial regulations, including the Department of Labor Fiduciary Rule, has been the problem of addressing actual wrongdoers. While pro-regulation consumer groups have a lot to say when it comes to investment fees, they have made virtually no progress that I can see in reigning in one of the industry’s worst offender – Equity-Indexed Annuity (EIA) firms.

Shutterstock

In fact, I think these investments may just be the modern Ponzi scheme based on a client review that I’ll detail below. It is impossible, in my opinion, to believe they will pay out the benefits we confirmed with multiple representatives without assuming they are being paid for by future investors.

To start the case against the EIA industry I typically detail my experiences with the culture of the firms and agents. While you may find an agent whose personality you like, it’s important to hear real examples of how you or your widow may be treated during vulnerable times.

I have a widow as a new client that we determined does not need the lost growth potential of approximately 20 annuities her husband purchased – or the expensive income or death benefit riders since she lives on her Social Security payment. For the last four months we have been trying to remove her money from the grasp of a widely used EIA provider.

The client here has spent easily a dozen hours on the phone with company representatives trying to confirm the processing and receipt of paperwork, some with me, but most on her own due to her concern over how the company holding her money is not being straightforward with her. (Note: She called the company directly and not the agent because the agent was visibly angry with her wanting to move money out of these contracts and told her he would not assist with her inherited accounts; this emotional manipulation is too common in my experience).

Together we found after 30 days and many calls that the firm – after initially denying receipt of the paperwork – did, in fact, have the withdrawal requests, but gave itself a 45 business day deadline to look at the paperwork.

After what felt like 45 business days, in some cases we were told that paperwork was not complete, in some they said it was not all received, and in others they claimed our instructions were confusing.

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