Page 144 - Ready Set Retire
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Stephen J. Kelley
who bought them. They didn’t protect investors from
UPSIDE RISK! Here is the actual wording from the actual
statement (emphasis mine):
Thus, the protections provided…may not
adequately transfer investment risk from the
purchaser to the insurer when amounts payable
by an insurer under the contract are more likely
than not to exceed the amounts guaranteed
under the contract…11
Yup, you read it right. The SEC wanted to protect you from
the possibility you might make more money than the
contract guarantees. Excess profits...a terrible thing (unless
you are, ahem, actually a Wall Street maven!) Really. You can’t
make this stuff up!
Now Congress and the courts saw through what the SEC was
trying to do, so they stepped in and stopped it. So Wall Street
couldn’t kill the things. What was next? Here’s an excerpt from
an article in Life Health Pro, January 2, 2012, by a very well-
known annuity expert, Jack Marrion:
11 U.S. SEC Ruling about FIAs under 151-a 73 Federal Register 37752,
July 1, 2008
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