Christopher Cox, Chairman of the SEC;
Joseph Borg, Securities Commissioner of Alabama;
Lori Swanson, attorney General of Minnesota;
Mary Schapiro, CEO of FINRA;
William Galvin, Secretary of Massachusetts. Plus there are others.

You’ll notice one thing in common with all these — they are allied with the brokerage industry or they aspire for higher political office. It is now patently obvious that fixed annuities — including index-linked fixed annuities — are far less risky that market investments like mutual funds, variable annuities, stocks, bonds, etc. At this time the market is off by 50% from year-ago levels and massive losses have infected every “market-based portfolio” – including 401(k) accounts — yet fixed annuities have no losses nor are they possible. While the brokerage industry likes to talk about prospective failures of insurance companies, none has materialized — AIG Corporate demise had nothing to do with insurance but rather unregulated CDSs. Ironically, Wall Street is still preaching the merits of market investments as if the market were not in meltdown and the primary player not in bailout mode from the federal coffers. While fixed annuities are not for everyone, they certainly seem to be “the” safe harbor for retirees and those in the retirement red zone before retirement. Such cannot be said for market-based investments — not in the short-run or in the long-term.

Shelby Smith, Ph.D.

1. Roll-in money that came from another plan: can be transferred or withdrawn without restrictions at the option of the plan participant (employee).

2. Employer matching and profit-sharing contributions: ERISA says it can be withdrawn or transferred at any age BUT employers may stipulate an age – and most employers stipulate age 59½ or older to prevent younger employees from withdrawing money.

3. Employee voluntary contributions: ERISA says these cannot be withdrawn prior to age 59½ BUT they permit employers to stipulate an older age – and many stipulate older ages or normal retirement age.

If you have a triggering event – death, disability, plan termination, retirement, leaving the employer and financial hardship (if the employer has a hardship provision in the the Plan, and it is their option) – money can be withdrawn or transferred.

Please read the full report on http://www.theretirementpros.com

You can read the report and watch a video overview here >>.

Good Luck!

financeblogger

financeblogger

Then to compound the problem the SEC and FINRA want to take a good alternative and limits its supply to only limited broker dealers many of whom don’t want to offer it to their clients because the broker dealers do not get enough revenue from the sale of the product.

financeblogger

Thanks
Conner Collins