Variable Annuity Articles

Richmond, VA: Bill C says that his money was improperly put into a variable annuity when his financial advisor failed to follow his instructions. By the time she corrected her error, Bill's investment had lost some of its value. Although Bill says he did not lose a lot of money, he would not have lost any money at all if his advisor had acted according to his wishes.

Miami, FL: Seniors living in Florida now have some added protection from unscrupulous brokers who sell them unsuitable variable annuities. The state has toughened the suitability requirements that such brokers must meet when they sell variable annuity insurance products to consumers. The state has also strengthened fines against those brokers who use fraudulent sales practices to sell annuities to customers.

Denver, CO:Kathryn S (not her real name), put a lot of money into variable annuities a year ago. Unfortunately, since she invested the money, she has lost a lot of it. She says her money is locked into the variable annuities, leaving her with no choice but to ride it out.

Miami, FL: Ida L. is furious at the financial advisor who put her money into variable annuities. Like many people whose money was put into variable annuity insurance products, Ida says the investment was not suitable for her, given her financial situation and her physical health. However, even though the financial advisor has not given her a contract for her investments, Ida is having a hard time getting her money back.

Chicago, IL: Considering variable annuity insurance as an investment? Imagine going to buy a car, and saying to the salesman, "I want a little Honda Fit. Small, good on gas, cheap to run. It's all I need." The reply? "No ma'am, what you need is a Hummer. Four times the cost of a Honda, five times the gas consumption. And when they foreclose on your home, you can live in it." Maybe they'll throw in variable annuity life insurance to go along with it.

Thornton, CO: Marjorie S. (not her real name) thought she was clear with her stockbroker when she said she wanted the safest investments possible; she did not expect that her money would be put in something as unsafe as variable annuities. Like many people with money in variable annuity investments, Marjorie has learned that the money is now locked in, and there is nothing she can do about it.

Boynton Beach, FL: Variable annuities. Variable annuity insurance. Variable annuity life insurance. It's all so confusing, and so fraught with risk. You can just imagine a group of seniors sitting in a room, and having Sgt. Esterhaus in a scene straight out of 'Hill Street Blues' dispatch the assembled octogenarians with the now-famous phrase, "…let's be careful out there."

Las Vegas, NV: To say that Mark D. is mad that his mother's money was put in variable annuities would be a massive understatement. He is furious that a financial advisor took advantage of his mother for the commission associated with a variable annuity sale, denying his elderly mother access to money she desperately needed and could not afford to lose.

Chicago, IL: Perhaps you've purchased a variable annuity but are not entirely sure of what that entails. Or perhaps you have purchased variable annuity life insurance but are second-guessing that decision, thinking it may not be a suitable investment for you. The thing about variable annuities is that they are quite complex and, while they may seem like a no-brainer to invest in, they do have their ugly side.

Passaic, NJ: If you've purchased variable annuities, you need to ask yourself whether or not you actually need them. As it turns out, not many people benefit from investing in variable annuities. In fact, according to a study conducted a few years ago by Charles Schwab, only long-term investors that are in high tax brackets and have already filled every other retirement option need variable annuities.