IFID:  IFID Centre is a non-profit corporation dedicated to generating advanced research at the intersection of wealth management, personal finance and insurance.

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

( Symbol Guide )

 [ A ]

A Notice Concerning Equity-Indexed Annuities, Donald Moine, Morningstar Online, September 22, 2005.  A Compilation of Research Reports Concerning EIA.

Alligator Proofing Your Estate, Massachusetts Security Division, September 2002.  (Annuity)  Seminar Information

Annuities Sellers Make Grim Pitch Amid a Turbulent Stock Market, Bridget O’Brian, The Wall Street Journal, July 12, 2002.  "Sellers of variable annuities can hardly trumpet stock-market gains to drum up slumping sales in this retirement product. So now they are very gingerly touting another one of its main features: the incongruously named "death benefit."  In May, Nationwide Financial Services Inc. put out a news release plugging the fact that its variable annuities paid out $24 million more in death benefits last year than the accounts had in value when the annuity holders died."  (Annuity (Rising Floor, Earnings Benefits and Death Benefits) | Costs, Fees and Surrender Charges)

Annuity Gratuity, Carolyn T. Geer, Forbes, February 19, 2001.  “Forbes said it three years ago in a cover story (Feb. 9, 1998), and we'll say it again at the outset here: Most variable annuities are very bad investments. These creatures (which are just starting to pop up in Europe and Asia) are mutual fund—like accounts with the patina of an insurance policy that have the effect of deferring taxes on investment earnings. Fees are high and the tax advantage is often an illusion, since the annuity converts low-taxed capital gains into higher-taxed ordinary income." (Annuity (The Bonus Annuity) | Costs, Fees and Surrender Charges)

As Teachers Sock Money Into 403(b)s, Few Defenses Exist, Tom Lauricella, The Wall Street Journal, August 25, 2005.  “Long Island, N.Y., school district hired Horizon Benefit Administration Corp. in early 2001 to manage its retirement plan. Within months, teachers in the Bayport-Blue Point Union Free School District began complaining: Money wasn't credited to their accounts or went to the wrong investments. Statements were sent late, to wrong addresses, in unsealed envelopes -- or not at all.  In total, 117 employees complained, but district officials considered the missteps isolated and didn't replace Horizon." (Annuity and 403(b) Plans)

At Annuity University, Agents Learn How to Pitch to Seniors, Ellen E. Schultz and Jeff D. Opdyke, The Wall Street Journal, July 2, 2002.  "You'll waste time if you think you can impress them with charts, graphs, printouts or use sophisticated words," the manual, written by Mr. Clark, says regarding seniors. "They buy based upon emotions! Emotions of fear, anger and greed."  (Annuity)

 [ B ]

 [ C ]

Complex Truth About Investing in Annuities, John F. Wasik, Bloomberg Online, August 14, 2006.  “Most variable annuities are the lemons of retirement vehicles because of many sour features: They are generally overpriced, oversold and fully taxable when you withdraw the money from them.”  (Annuity)

Costly Lessons, Neil Weinberg, Forbes, April 25, 2005.  “Some of the biggest names in insurance peddle lousy retirement plans with high fees and low returns. One and a half million teachers blithely signed up for these dogs—often with their unions' blessing." (Annuity | Costs, Fees and Surrender Charges)

 [ D ]

Defending the Nest Egg, Jeff D. Opdyke, The Wall Street Journal, March 23, 2002.  "For the past few years, Mr. Smith has complained -- politely, but persistently -- to state insurance regulators, politicians, the Securities and Exchange Commission, the National Association of Securities Dealers, AARP, even Florida's Gov. Jeb Bush. His beef: Brokers and agents throughout the financial-services industry, he insists, are fleecing older investors by selling them variable annuities -- investment contracts that often carry high commissions, onerous fees and can foul estate planning."  (Annuity | Costs, Fees and Surrender Charges)

 [ E ]

Equity-Indexed Annuities - A Complex Choice, NASD, June 30, 2005.  “Sales of equity-indexed annuities (EIAs) have grown considerably in recent years. Although one insurance company includes the word "simple" in the name of their product, EIAs are anything but easy to understand." (Annuity (Equity-Index) | Costs, Fees and Surrender Charges)

 [ F ]

 [ G ]

Great Annuity Rip-Off, Carolyn T. Geer, Forbes, February 9, 1998.  “Do you want proof positive that investors are irrational? Here it is: Sales of variable annuities went up 16% last year, to $85 billion.  A variable annuity is a mutual fund-type account wrapped in a thin veneer of insurance that renders the investment earnings tax-deferred." (Annuity | Costs, Fees and Surrender Charges)

 [ H ]

How Annuity Holders Can Pull A Switcheroo, Karen Damato, The Wall Street Journal, December, 6, 2002.  "Investors who have suffered big losses in stock mutual funds have two primary options: Hold on or sell. But some of those who have suffered stock losses within their variable annuities have an added choice that could prove valuable." (Annuity | Money Management)

How Variable Annuities Can Gnash Investors:  Sellers, Brokers Do Well on Fees But Some Buyers Turn Sour When They Read the Fine Print, Theo Francis, The Wall Street Journal, February 6, 2004.  “In January 2001, 77-year-old Frank C. Cicio Sr. and his wife walked into a First Union branch in Boca Raton, Fla., looking for a safe place to put proceeds from selling their three-bedroom home in Dobbs Ferry, N.Y. Mr. Cicio, a retired grocery-store and restaurant owner, says he asked for an account to provide income for him and his wife to live on.  The couple was sold two $100,000 variable annuities, a product that combines a mutual-fund-type investment account with life insurance and certain tax advantages."  (Annuity | Costs, Fees and Surrender Charges)

 [ I ]

Insurers Are Finding It Hard To Guarantee a 3% Return, Bridget O’Brian, The Wall Street Journal, December 10, 2002.  “Not long ago, investors would scoff at an investment that promised only a 3% return, even a guaranteed one. These days, plenty of investors would be happy to settle for that.”  (Annuity (Financial Firms))

 [ J ]

 [ K ]

 [ L ]

Lawsuit Says Teachers Are Overcharged on Annuities, Gretchen Morgenson, The Wall Street Journal, July 17, 2007.  “A lawsuit filed last week in federal court in Washington State contends that the National Education Association breached its duty to members by accepting millions of dollars in payments from two financial firms whose high-cost investments it recommended to members in an association-sponsored retirement plan.  The case was filed on behalf of two N.E.A. members who had invested in annuities sold by Nationwide Life Insurance Company and the Security Benefit Group. It contends that by actively endorsing these products, which carry high fees, the N.E.A., through its N.E.A. Member Benefits subsidiary, took on the role of a retirement plan sponsor, which must put its members’ interests ahead of its own."  (Annuity)

 [ M ]

 [ N ]

 [ O ]

One Faulty Investment, Jane Bryant Quinn, Newsweek, August 30, 2005.  “You rarely find me so deeply angry at a common investment product that I dream of blowing it to smithereens. Especially one that's sold by America's leading financial institutions, commands $393 billion in assets and sounds like a winner for retirees. But stand back, I'm going to light the fuse. My target: tax-deferred, variable annuities—a name that hints of probity, with a soupcon of tax savings on the side. What a laugh. It will cost you more in taxes and possibly risk your security, too. "I cannot imagine a personal financial situation where I'd recommend a VA as a good idea," says actuary John Biggs, former chair of TIAA-CREF pension funds.”  (Annuity)

 [ P ]

 [ Q ]

 [ R ]

Retiring Baby Boom May Yield Scam Boom, Kathy Chu, USA Today, February 12, 2006.  “In Michigan, an advertisement offers this come-on to those 60 and older:  "Come learn from the IRA Technician" at a seminar that more than 10,000 seniors have attended. Top sirloin steak will be served -- along with tips on "how to guarantee your IRA will never run out, regardless of market fluctuations."  (Annuity)

 [ S ]

Sales School: What Your Insurance Agent Is Learning From the 'Annuity Gladiator', Jonathon Clements, The New York Times, June 8, 2005.  “I can't recall precisely when I got my first message, and I have no idea how I got on this particular email distribution list. But at some point last year, I started receiving emails aimed at insurance agents, offering to pay me commissions of 8%, 10% and even 13% for selling annuities.  Initially, I trashed every message. But they kept coming and my curiosity kept growing." (Annuity)

Setting Up Your Own Pension, Tom Lauricella, The Wall Street Journal, March 11, 2006.  “With more companies phasing out traditional pension plans, financial-services companies have come up with an idea -- sell investments that behave a lot like a pension.”  (Annuity(Pensions))

 [ T ]

Tax-Shelter Tango: Keep Your IRA, Charles Forelle and James Bandler, Barron’s, March 27, 2006.  “Over the past decade, assets held in variable annuity contracts have increased rapidly, to more than $900 billion -- due to a combination of deceptively clever marketing and the sales efforts of agents motivated by high commissions.  Annuities are marketed as safe investments and also as tax shelters, similar to individual retirement accounts, or IRAs. Basing their sales presentations on that presumed safety and tax shelter, agents can generate commissions that range from 4% to 6% of the customer's investment. However, variable annuities generally make poor tax shelters, and can be very poor investments, to boot.”  (Annuity)

Teachers’ Investment Plans Flunk, Timothy Middletown, MSN Money, November 8, 2005.  “A 401(k) is a personal portable pension plan, which you can take from one job to the next. There’s a company match; the boss is on the hook if something goes wrong; hordes of federal regulators are looking over his shoulder.  A 403(b) is what you have if you’re a school teacher. You can’t always take it with you, at least without incurring steep fees; there is no company match; the boss has no responsibility to know anything about the plan, and he doesn’t. There is no cop patrolling this beat." (Annuity and 403(b) Plans)

Teachers Get Harsh Lesson On Investing, David Washburn, The San Diego Tribune, January 30, 2005.  “Twice in the past seven years, insurance company representatives have unexpectedly popped in on Peter Jones as he worked after hours in his San Diego High School classroom.  Both times, Jones was sold on investment plans that paid the agents generous commissions but left him with high fees, exit penalties and a nest egg worth thousands of dollars less than it could be. Unlike private-sector workers, who are eligible for 401(k)s, Jones and California's thousands of other teachers are stuck in a tax-deferred retirement program that teacher advocates say is tilted in favor of insurance companies and their commission-based products.”  (Annuity and 403(b) Plans)

Treat ‘em Like Blind 12- Year Olds, Paul Farrell, CBS MarketWatch, August 30, 2002.  “Pssst, have I got a deal for you. The stock market's a loser. The federal deficit's exploding. Bond funds could tank. CD's are one step above cash in a mattress. Hedge funds are about to shake-out. And the housing bubble's ready to bust like an overstuffed septic tank.”  (Annuity)  Seminar Information

Tricks of the Trade, Chris Hansen, MSNBC Online, April 13, 2007.  “A Dateline hidden camera investigation sees what insurance agents say -- and what they don't -- when they think they are alone with a senior.”  (Annuity) Seminar Information

Twenty Tips for No-Nonsense Investing, Jonathon Clements, The Wall Street Journal, February 19, 2006.  “Get an attitude.  Market strategists, your brother-in-law Bob, the television talking heads and the local brokerage firm's slick salesmen all spew an endless stream of utter nonsense. Such garbage would be hysterically funny, if it wasn't so damaging to investors' financial health.  Want to avoid getting taken? You need to summon the skepticism of the unflappable, world-weary, Street-savvy veteran investor.”  (Annuity| Financial Planning)  Seminar Information

 [ U ]

 [ V ]

Variable Annuities Aren’t For Everyone, John Waggoner, USA Today, October 18, 2002.  “As the nation grapples with questions about North Korea's nuclear capabilities and the dismal economy, you're probably asking yourself whether you should buy a variable annuity. No?  Well, that's probably a good thing. A spate of consumer complaints shows that many people who have them now never needed them in the first place. And a recent study by discount brokerage Charles Schwab suggests that a fairly small group of people need VAs: Long-term investors in high tax brackets who have already filled all their other retirement options."  (Annuity)

Variable Annuities:  What You Should Know, S.E.C.  “Variable annuities have become a part of the retirement and investment plans of many Americans. Before you buy a variable annuity, you should know some of the basics – and be prepared to ask your insurance agent, broker, financial planner, or other financial professional lots of questions about whether a variable annuity is right for you." (Annuity | SEC)

 [ W ]

Who's Preying on Your Grandparents?, Gretchen Morgenson, The New York Times, May 15, 2002.  “Back in February, Jose and Gloria Aquino received a flier in the mail inviting them to a free seminar on one of their favorite topics: protecting their financial assets. As retirees, they were always on the lookout for safe investment strategies as well as tips on how to make sure they didn't outlive their savings. Besides, the flier promised a free lunch for anyone attending the workshop, so what did they have to lose?  Potentially plenty, they would soon discover.  On March 1, Mr. and Mrs. Aquino stepped into the Coral House restaurant, not far from their home in North Baldwin, N.Y., on Long Island. They found themselves surrounded by about 50 like-minded retirees, most in their 70's and 80's, they said." (Annuity)

Why Big Insurers Are Staying Away From This Year's Hot Investment Product, Jonathon Clement, The Wall Street Journal, December 10, 2005.  “One of the insurance industry's hottest products is coming under fire -- from insurance companies."  (Annuity (Equity-Index) | Costs, Fees and Surrender Charges)

Why Variable Annuities Are Just For A Few, Kimberly Lankford, Kiplinger, August 30, 2003.  “Smoke and Mirros can’t disguise the simple truth about variable annuities.  Most investors can do better elsewhere.”  (Annuity) 

 [ X ]

 [ Y ]

 [ Z ]