Caveat Investor On These Annuities
Well, the SEC just made it a little harder for investors to tell the fool’s gold from the real thing. In a new policy letter, the SEC said that vendors of variable annuities, or VAs, could redraw the charts they use in sales literature to show the advantages of tax deferral-without accounting for the fees; mention of those charges could be relegated to more formidable columns of text. The intent, says the SEC’s Brenda Sneed, was to provide a “more meaningful” illustration of tax deferral....