We represent investors who lost money invested in inappropriate variable annuities recommended to them by their investment advisor or brokerage firm. Variable annuities are investment products that give investors a selection, or basket, of investments and then pay out a level of income in retirement determined by the performance of the investments you choose. This is contrasted by fixed annuities, which are insurance products that provide a guaranteed payout.

Variable annuities often come with significant risks, particularly for investors who are retired or on the eve of retirement. Such potential risks may outweigh any benefits of variable annuities. Those risks include:

  • variable fees that may prevent investors from making early withdrawals, for years, in case of an emergency
    high sales commissions that go to the selling agent and diminish the amount available to be invested and generate returns for the investor
    ongoing management fees and insurance charges, which combined can run as high as 2% to 3% per annum, further diminishing the  potential returns for the investors
    market-related risks that could cause the annuity to make substantially reduced payments, or even stop payments altogether
    rider costs
    mortality and expense charges

Beside the inherent risks of variable annuities, financial advisors may “push” these products on investors who do not require them or who cannot benefit from their ownership.

The “bonus credits” offered by some variable annuity products are also often just an insurance company matching the purchase amount of the annuity. While the additional funds may appear tempting to many investors, the insurance company often comes out ahead through back-end surrender charges, longer surrender charges, and other high expense charges.

If you believe you may have lost money as a result of inappropriate or questionable variable annuities investments, please contact us for a free, no-obligation consultation regarding your legal situation and potential recovery options, by phone at 888-998- 0530, via email at arosca@roscalaw.com, or through the contact form on this page.