Date: Sat, 22 Jan 2005 04:10:33 CST
From: "Cal Lester" 
Subject: Re: Safety and reasonable return
Newsgroups: misc.invest.financial-plan
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JLP wrote:
> Brent D. Gardner, ChFC writes:
>
> "There are no "charges" on most fixed contracts (over 99.9%), so the
> above
> warning is without merit and out of place. The subject is fixed
> annuities,
> NOT variable."
>
> Excuse me, but there ARE charges on fixed annuities.  It's just that
> they are hidden.  The charge is the difference between the rate the
> annuitant is paid and the rate that the insurer can get by investing
> the money.  You make it sound as though fixed annuities are free.
>

    Are we then NOT to accept eyeglasses from an Optomotrist who
    pays less for them than he charges you?
    Are we NOT to accept a mortgage from a LEGAL Bank, simply
    because they are charging you more interest than their ACTUAL
    expenses?
    Am I to assume (and you know what that spells) that you are
    under the impression that an Annuity provider should be a
    non-profit organization?
    I doubt that the original post by Brent ever alluded to the fact
    that an Annuity of any kind would be FREE.

Cal Lester CLU