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<< therefore they will always have the most appeal to those licensed to sell them, >>


We may have to agree to disagree here. I believe the VARIABLE ANNUITY will always have more appeal because it is the sweetest fruit from the commission perspective. It does not mean it will always be chosen, but it will always be more appealing to those who work for a living.

<< Because of the money incentives, VARIABLE ANNUITIES will always have larger sales numbers. >>

Can you substantiate this? Does your conclusion consider that there may be more people licensed to sell Fixed Annuities than Variable Annuities?

No, I have not had time since we began this discussion to do a search for a good quality database that might provide a breakdown that would answer this question. Yes, I have considered that more may be licensed to sell FIXED ANNUITIES. But until the last few years, CDs were always paying higher interest so had more appeal.

Well, I can tell you that I HAVE had these kinds of choice many times (not the 7% of course, since that's not nearly how high a typical variable annuity commission is . . . especially on a fixed rate "bucket"). And I can tell you that in EVERY CASE, it's been the Fixed Annuity sold, as expenses in a Variable Annuity were just too great. It's actually a no-brainer!

Well, I've seen as high as 9% commissions on VARIABLE ANNUITIES and 7% is still quite frequently offered.

I commend you on applying principles above principal. That should be the Standard and the Common Practice. There are cases where FIXED ANNUITIES are the better choice for an individual's portfolio, there are cases where a VARIABLE ANNUITY can and does make sense. The problem is that the incentive structure in the "investment" community is such that "VARIABLE ANNUITIES" are often the first and most presented. The applicability logic is crafted to suit the offering rather than being dictated by the clients best interests.


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