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Annuity Guarantees: How Real Are They?

Tuesday, December 6, 2011 - 4:59 AM
In this CBS MoneyWatch article Allan Roth reports on his investigation of the claims that a Prudential variable annuity guarantees a 5% return:
The illusion being presented here is that Prudential doubles your value and then pays you out a cash stream at a captive rate far lower than you could buy in the open market.
[...]
The next time you are reading a 200-page document describing a financial product, ask yourself if you think the attorneys and actuaries wrote it to protect you or the insurance company? Don't ever play a game you don't fully understand.

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Ken TuminKen Tumin5,468 posts since
Nov 29, 2009
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