Sales of variable annuities rose in 2007 to $179.5 billion, then took a dive along with stock markets in 2008, falling to $151.9 billion, according to data from Morningstar Inc.
Tumult on the variable annuity scene is dampening sales at broker-dealers, raising some concerns about the impact on revenue for the firms and their representatives.
For nearly 50 years, financial economists have scratched their heads wondering why more people,at least those without significant bequest motives, didn’t buy annuities.
Companies are licking their chops at the prospect of a wave of baby boomers leaving their jobs with trillions of dollars in 401(k)s and other savings accounts.
Of all the products offered to investors, few are more controversial than variable annuities. The conventional wisdom is that variable annuities are sold, not bought.
This issue of The Wealth Counselor examines a topic that should interest all owners of non-term life insurance policies and their advisors – Internal Revenue Code Section
1035 and its application.