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An Empirical Study of A Client’s Equity Index Annuity Returns

Financial author Allan Roth once wrote an article called “Investment Trick – Annuity Style” where he asks a rhetorical question, “If the S&P 500’s total return is 12% in a given year, what do you think your equity index annuity (that is supposed to track the S&P 500) would return”? 343 more words

Wealth Management

Why A Fixed Rate Annuity Is Not A Savings Account

A client of mine bought a fixed rate annuity a few years ago. She was told by the agent that it’s just like a savings account, only with a higher interest rate of 3%. 265 more words

Wealth Management

Sunk Cost Fallacy: Annuity Surrender Charges

Many people keep their bad annuity investment because it imposes a stiff surrender charge. This is a stereotypical example of sunk cost fallacy, an academic term which describes people… 385 more words

Wealth Management