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

On 2008-04-08 08:50:22 -0700, kastnna <kastnna@[EMAIL PROTECTED]
> said:

> As I already explained, she most certainly does pay it (in the form of
> investment expense charges). All Cal is saying is that it is not
> deducted from the clients initial investment as would be the case with
> a loaded mutual fund, for instance. Given an A share mutual fund or a
> variable annuity, the VA will have a higher initial investment value.
> 
> Do we have any context for the commission amount? Maybe she is
> investing $100,000,000 in which case the amount is a miniscule amount
> of the overall investment. I doubt this is the case, but it seems
> we're "going off half-cocked".


However you look at it, if the companies could work out some way of 
providing their products directly to customers without a whole level of 
middlemen who need to be paid commissions, the returns on investment 
should increase. That certainly as been possible in the case of equity 
mutual funds. I wonder if it is coming in the case of mixed 
equity/insurance products.

After all these posts, I wonder why the OP has not replied before now 
and cleared up the uncertainty as to exactly what his wife is 
considering buying and how that commission of $6600 is to be paid. I am 
inclined to believe he put out the original question as a kind of 
hypothetical exercise rather than a scenario involving real people.

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