On Sat, 29 Mar 2008 04:50:11 -0500, "Cal" <cal-lester@[EMAIL PROTECTED]
>
wrote:
>
>
>>
>>
>> If I were you, I would not pay much attention to the financial
>> stability of that particular company, nor to the "may lose money"
>> disclaimer, but instead would focus on that extraordinary $6600 in
>> commissions and ask for convincing evidence that the monetary return
>> from the annuity would justify such an expense.
>
> Lets clear up a few points here. That alleged $6,600 in commision is
> NOT the same as a commssion payable on the purchase of a stock ! ! ! !
>
> It is a commission paid to the seller by the Carrier, from thier
General Funds.
> It is NOT DEUCTED from from the purchase price...................
> Instead, normally, the entire amount is credited to the Cash Value
Account.
> and earnes a stipulated (good or bad) Interest Rate.
> The ONLY way that one can LOSE money on the purchase purchase of ANY
> Annuity, is to surrender that Annuity EARLY. Thier is a Surrender
Charge, very
> similar to one found on the issue of any CD.......................
>
>
Did that 6600 grow on a tree? It comes out of profits generated by
the annuity for the company selling it. It's not a matter of losing
money. It's that the buyer could make $6600 dollars MORE if the
commission didn't exist.
Thumper
>
>
>Of course, that
>> evidence will not be forthcoming. She might hear something like "But
>> this is an excellent fund. It has done great in the past ...", etc.,
>> etc. But how many thousands of times has that been said.
>
>
> MOST (but not all) Annuities are INTERST EARNING instruments, and
> are NOT invested in any fund. Therefore there are NO "Up's & Down's."
>
>The chances
>> are that she would come out far better by leaving the money where it
>> is. The fact is that by moving the funds into a new product with a
>> $6600 cost just for making the move, she would be taking a risk and a
>> gamble far larger than the gamble that the new fund, or any fund, "may
>> lose money" because of market fluctuations.
>
>
>
> As I have stated above, GENERALY speaking there is NO COST involved
> in the purchase of an ANNUITY....................
>
>
> Cal Lester CLU
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