Page 146 - Ready Set Retire

Stephen J. Kelley

proclaimed. Because the annuity industry
remained silent and let the securities industry
write the story the media was full of tales—
actually a few tales repeated nauseam—of how
bad index annuities were. The result was Rule
151A, which would have killed index annuities.
However, the annuity industry finally rallied
and managed to kill the rule instead; meaning
index annuities would still be competing for
consumer dollars. 12

So what’s this big number one top secret? The biggest thing
that insurance and annuities do better than anything else? The
thing so threatening to Wall Street that the SEC felt compelled
to nuke them out of existence (because, as you will recall, there
was not enough UPSIDE protection!)?

They eliminate and spread the risk. They take it off you
and put it on a giant pool of people. Just like insurance
companies do with car insurance, or home insurance or health
insurance.

12 Marrion, Jack. Life Health Pro 2 Jan. 2012.

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