Monday, January 28, 2008
A new breed of variable annuity emerging
In general, traditional variable annuities are high-commission and high-cost products.
Commission salespeople like them because commissions are hidden and costs and surrender charges are rarely discussed... According to Morningstar, the average insurance cost for a variable annuity is 1.35 percent. This is on top of the subaccount (mutual fund) management fee. Registered investment advisers have a fiduciary duty to their clients and most avoid VAs because of costs.
Insurance companies, realizing that 76 million boomers will reach retirement age in the next two decades, are bringing to market VA products that are low-cost and no-load. No-load means no commissions...
Coloradoan: A new breed of variable annuity emerging
Commission salespeople like them because commissions are hidden and costs and surrender charges are rarely discussed... According to Morningstar, the average insurance cost for a variable annuity is 1.35 percent. This is on top of the subaccount (mutual fund) management fee. Registered investment advisers have a fiduciary duty to their clients and most avoid VAs because of costs.
Insurance companies, realizing that 76 million boomers will reach retirement age in the next two decades, are bringing to market VA products that are low-cost and no-load. No-load means no commissions...
Coloradoan: A new breed of variable annuity emerging
Permalink posted by markw @ 4:53 AM 
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