Annuities Have Been a Cause of Concern for Investors and Regulators Investor Claims Is What We Do - All Day, Every Day

Annuities Have Been a Cause of Concern for Investors and Regulators

Many investors have been attracted to variable annuities, as a way to generate a fixed income for life. Unfortunately, annuities have become a major headache for countless investors.

As people are approaching retirement, many are concerned about how they will afford to live. They have watched the value of their investment portfolios drop dramatically and the current low interest rates have provided little hope. Variable annuities appeared to be the answer for near-retirees. Little did they know that there are serious problems that can result from these annuities.

The negative repercussions associated with variable annuities, which are contracts between the purchasers and the insurance companies, are numerous. Below is a brief list of some of the issues that have arisen as variable annuities have grown in popularity:

  • High fees: The fees associated with variable annuities are substantial. The U.S. Securities and Exchange Commission, SEC, states (in bold print) on its website that “these charges will reduce the value of your account and the return on your investment.” Some of these fees include a mortality and expense risk charge, administrative expenses, underlying fund costs and a surrender charge.

  • Not suitable for every investor: Variable annuities are not appropriate for everyone. Brokers often earn a higher commission when they sell variable annuities than other types of investments, which could make it tempting to push annuities on their clients. A broker who recommends an unsuitable investment could be liable for losses.

  • No additional tax benefits: Variable annuities are tax-deferred, meaning you don’t pay taxes until you withdraw your money. However, if the money invested in the variable annuity is through a 401(k) plan, IRA or other tax-advantaged retirement plan, there will not be any additional tax benefits.

  • High risk: Variable annuities are not without risk. The principal of the investment is not protected, despite what some brokers have led their clients to believe. Plus, investors become tied to the annuities due to the high surrender costs and possible tax consequences.

The Meyer Wilson Way

Results-Focused Representation
  • More than $350,000,000 Recovered
  • Voted Best Lawyers in America® for over Ten Years Running
  • David Meyer is President of Public Investors Advocate Bar Association (PIABA)
  • Over a Thousand Investor Claim Cases Since 1999
  • Exclusive Focus on Investor Claims & Class/Mass Action Lawsuits
  • Deep Bench of Skilled Attorneys and Staff Members

We Recover Investment Losses

Helping You Take Back What Is Yours
  • Jury Verdict Won Against Prudential Securities $262 Million
  • Recovered for 100-Year Old Widow $30 Million
  • Recovered in Retirement Losses $10 Million
  • Recovered for a Large Group of Individual Investors $6.5 Million
  • Recovered for Elderly Victim in Ponzi Scheme Case $3.8 Million
  • Recovered for Elderly Ponzi Scheme Victim $3.2 Million
  • Recovered for More Than 50 Families of Ponzi Scheme in California $3.2 Million
  • Recovered for 35 Families in Northeast Ohio $3.1 Million
  • Losses Recovered for 20 Retirees $3 Million
  • Recovered for Retired Physician Against Major Wall Street Firm Prior to Filing FINRA Arbitration $2.5 Million

Talk to Our Team

Get Started with a Free Evaluation
  • Please enter your first name.
  • Please enter your last name.
  • Please enter your phone number.
    This isn't a valid phone number.
  • Please enter your email address.
    This isn't a valid email address.
  • Please make a selection.
  • Please enter a message.