Stone: The Truth about Variable Annuities
Writing for Kiplinger.com, RetireOneTM CEO David Stone addresses some old myth-making about variable annuities. As sure as the sun rises and sets, variable annuities will draw negative attention from some advisors and finance journalists. And typically, their criticisms are spot on.
But those criticisms often pertain to older products sold for commission. VAs are evolving. New No-load offerings are changing all of that and it starts with compensation.
When annuities are sold for a commission, several things happen: The advisor’s success is decoupled with their client’s success, costs rise to cover the expense of the commission, and investors are locked into surrender periods to give issuing companies a chance to recoup high costs.