Variable Annuity Fraud
Thousands of Americans have had their retirement funds depleted through the unethical sales of variable annuities. A variable annuity is essentially a mutual fund that sits inside of a life insurance product, which makes earnings taxed deferred. This tax deferred status is what salespeople at financial institutions have used to sell these investment products to unsuspecting investors, often senior citizens. Seniors make good targets for the salespeople because they are often concerned about taxes and are attracted to fixed income investments. It is absolutely inappropriate to recommend the purchase of variable annuities to senior citizens.
There is absolutely no reason for most investors to purchase a variable annuity. These products are expensive, lack liquidity and converts low-taxed capital gains tax into more highly taxed ordinary income. However, variable annuities are not sold because they are great investments; they are pushed so strongly by salespeople because they pay huge commissions.
Insurance agents, stockbrokers and commission-paid financial planners can receive a commission payout up to 7% on the sale of variable annuities. No other investment products pay anything close to 7% in commission. The average commission on mutual funds is 4% and less than 3% on stock transactions. Variable annuity companies are forced to pay such high commissions because their products are unattractive to most investors.
If you or a loved one purchased a variable annuity you may have be cheated out of thousands of dollars. Contact Mark & Associates, P.C. today to have an experienced investment fraud attorney analyze your case. We can fight to get your money back and there are no up front legal fees. We only receive compensation if we recover money for you.
To receive a free, no obligation, variable annuity case evaluation please complete the submission form on the right side of this page or call 1-866-50-RIGHTS (1-866-507-4448).