The Financial Industry Regulatory Authority (FINRA) published an Investor Alert on how to determine if investors should exchange their variable annuity for another model. An annuity makes periodic payments to the holder of the annuity. There are fixed annuities that make fixed payments and variable annuities that make variable payments.
While equity-indexed annuities have become increasingly popular, some have questioned their value and suitability to retirees or soon-to-be-retirees. Equity-indexed annuities are complex and their complexity masks certain costs and risks. High sales commissions and low level of regulation also encourage sale practice abuses.
