Posted in: Greedy Brokers | Breach of Fiduciary Duty | Risky Investments | Variable Annuities |
Despite the market’s ups-and-downs as of late, many investors are hoping-if not anticipating-for an economic recovery on the horizon. But many seniors who have purchased variable annuities suffer from this market volatility because of “sequencing risk.”
This rule penalizes any investor for withdrawing money from the annuity when market conditions are down. Retirees depend on investment money to live on, especially when the Dow Jones is at its lowest, and may have no choice but to withdraw from the account.
Variable annuities can be suitable long-term investments for some. But if you purchased a variable annuity from a broker who didn’t properly inform you of all the charges and many risks involved with the purchase, you should consider pursuing legal action.
Many wise investors have been fed faulty expectations from improper brokers. Seniors who were just beginning retirement during the market turmoil in 2007 and 2008 now risk losing a chunk of their initial investment, which can never be recovered on.
Tragically, variable annuity fraud has become so prevalent lately, as there are nearly 80 million Baby Boomers at or near retirement. Brokers receive hefty commissions for transacting a variable annuity for a client, which is why some neglect to tell their clients that there is a surrender charge period lasting up to 10 years.
Variable annuities progress through long, complex. Different sets of rules and charges exist for each phase, and the long maturity means this is suited for the advanced investor who can withstand any market downturn.
Complicated financial instruments, like variable annuities, are so often used for this sort of stockbroker misconduct.
