Consumers Fail to Avoid Investing Fees

The point is, the basic concept is not difficult to understand. Truthfully, I don't know why anyone would want to talk about annuities at a cocktail party anyway. :)

rb of TX 1:59PM February 11, 2009

You wrote: "Take annuities, for example. A great tool for some people, sure. But even as someone who's written about them before, I would have trouble providing an accurate definition at a cocktail party."

Perhaps if you can't provide an accurate definition you shouldn't be writing about them.

The basic concept of a "fixed" annuity, whether it be a fixed rate design or a fixed index design, is very simple. First, as opposed to variable annuities, they are not investments. They are insurance products that provide a guarantee of principal, guarantee of earned interest, and the ability to generate a income that cannot be outlived.

Thanks for the opportunity to respond.

rb of TX 9:46AM February 11, 2009