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.