Monday, January 26, 2004

Variable Annuities Are Next

Mark my words - Variable Annuities are next in line to be caught up in mass scandal. If you think that mutual fund scandals were bad, I suspect what we learn about Variable Annuities will be much worse. I don't like or dislike Variable Annuities - they are simply a tool - though most of the VA products on the market are pure junk. VA's are not subject to breakpoints and they are used instead of mutual funds because of it - of course it also doesn't hurt that VA's come with features that allow advisors to use the term "guarantee" - be very weary of an advisor selling you a variable annuity.

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