In this weeks edition of Speaking of Settlements, Mark Wahlstrom discusses the recent decision by the NAIC to not cave into the pressure of the moment from the life insurance industry to relax the reserve and financial requirements that protect policyholders. Many life insurance companies, among them Hartford Life, Lincoln Financial and others wanted to be able to put less money into statutory reserves in order to protect the long term guarantees in certain lines of annuity products. This would have affected variable annuity guarantees primarily, but the same requirements would have also lightened up the requirements for regular annuity contracts. The NAIC decided the safety of the customer was more important then the short term relief this would have provided the life insurance industry. A great move by the NAIC to not cave into the pressure of the ACLI and other lobby groups and to preserve the integrity of the life insurance industry. Learn more about these protections by visiting www.thesettlementchanne.com

Getting Started in Annuities (Getting Started In…..)

Getting Started in annuities One of the most popular retirement investment options, annuities are also among the most difficult to comprehend. This handy volume provides an in-depth, easy-to-understand look at these complex instruments, revealing exactly what they are, how they work, and what advantages they have over other investment vehicles. Along with performance tables, sample portfolios, and a helpful Q & A section, you’ll find up-to-date details on tax law changes, as well as complete information on:

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Question by dgreen75503: What’s the difference between an annuity and a regular mutual fund as far as retirement?
A friend of mine said that my investment “adviser” will make a KILLING on an annuity if I open one up; plus, I have to be in this annuity for something like 8-10 years before (decreased fees or something??) occurs. I’ll be transferring around 0k from another brokerage house to my “adviser.”

This same friend thinks I need to stick with mutual funds… when you compare the two investment vehicles, their difference in total return over the last 12-15 years isn’t that much difference (but that there were tax benefits or something with one or the other).

Any help?

Best answer:

Answer by pepper
Your friend is correct. Loads of commissions on an annuity, it’s an insurance product. Loads of fees in a mutual fund.

Read about them. Check Guardian.

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