5 Reasons to Question the Recent Indexed Annuity Article in Bloomberg

An article on indexed annuities appeared in Bloomberg yesterday (click here to read).

The article is substantive and comes from a credible source.  It is provides a good explanation of why surrender fees need to be a front-and-center consideration for any consumer considering the purchase of an...

First Lose No Money

Is there a financial equivalent to the maxim “first do no harm?”

What if one of the guiding principles of medicine was applied to the world of financial advice?

What would the financial services landscape look like if product manufacturers and advisors were required to play by rules similar to those that exist for physicians?

First, my guess is that the financial corollary to the application of primum non nocere (first do no harm) would be:

  • First do not lose money.

I have had countless conversations over the past year or so with people who cannot believe they are actually paying to hear someone tell them that they are in relatively good shape because their portfolio has outperformed some index by fifty basis points.  ...

Variable Annuity Related FINRA Arbitration Cases Triple in 2009

The Financial Industry Regulatory Authority (" FINRA ") has reported that the number of arbitration cases related to the sale of variable annuity products increased from 47 cases in 2008 to 123 cases in 2009. Overall, the number of arbitration cases surged 43% to 7,137. This increase in investor grievances is not surprising given what a difficult year 2009 was for many. Investment News reports that many of the variable annuity cases involve "products with risky subaccounts and clients over age...
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Investors Making Some Progress with Financial Crisis-Related Arbitration Claims

Barron's reports that U.S. investors have filed more securities arbitration claims in 2009 than in all of 2008. 4,991 claims have been filed thus far in 2009. Mandatory arbitration--which prevents a case from going straight to court--is essentially the sole recourse for investors who feel they have been harmed by a broker or advisor. The arbitration system is run by Finra , which serves as the self-regulation arm of the securities industry. The overall success rate of securities arbitration...