Page 178 - Ready Set Retire

Stephen J. Kelley

It shouldn’t surprise you that your broker or anyone else likes
nothing he views as having the possibility of taking your
accounts away from him or her. It’s like ripping the braces off
his kid’s teeth (or that’s the way he/she may see it!) I have not
met many brokers who don’t sell FIAs who actually
understand them themselves, much less have the ability to be
able to fairly and accurately explain them to their clients. In any
event, who are you trying to please? Yourself or your broker?
Ask your broker if fixed annuities are bad, why are variable
annuities good? Could it have something to do with all the fees
they get to charge?

6. “MY BROKER TOLD ME YOUR COMMISSIONS ARE TOO
HIGH.”

I don’t mind telling you that the longest, highest paying FIA I
sell has a commission of about 2/3-1% per year. More often
than not, the broker telling you not to buy because of high
commissions is probably being paid as much as 2% per year,
or three times what I get paid. And, if he is selling variable
annuities (show me one who isn’t), you are probably being
charged around 4% per year...six times what an index annuity
costs.

Further, the broker’s compensation and VA fees come out of
your funds. That means whether you make money or lose
money, YOU will pay your broker that fee! How did you do

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