Re: Index annuity real returns

kastnna <kastnna@[EMAIL PROTECTED]
> wrote:


>
>Index annuities are dangerous and probably require more due diligence
>than other annuity product available. I'm pro-annuity, for the record,
>and yet I've never sold one. The reason you're get "mixed messages" is
>because the insurance companies do a terrible job (intentionally?) of
>disclosing exactly how equity-index annuities (EIA) work. 

As you know, I will occasionally rant and rave here about how hard to
understand
these products are.  I believe it is, at least partly, intentional.  I
once had
a vice president of a major phone company tell me that they didn't want
customers to understand the plans and pricing.  Confusing pricing makes it
hard
to comparison shop.

It the case of these annuities, it makes the customer dependent on the
salesman
to explain them, which gives the salesman the op****tunity to spin the
product as
necessary.

-- Doug

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