Re: Annuities...are they a crap shoot?

>>    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

Apparently you have not been reading the thread. It was already explained 
that
any commissions paid to the seller come out of the general fund of the 
carrier,
NOT out of the investment of the buyer.

The comparison was made of a purchase of a Mutual Fund of $10,000, FROM 
WHICH
the commission IS deducted, and the remaining balance is the only amount 
INVESTED.

In the case of the purchase of the Annuity, the entire amount is placed in

the Cash Value
Account, and earns the stipulated interest from DAY  1.

Cal Lester  CLU

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