The Truth About Avoiding Scams

Chapter 56. Fees in legitimate investments

Variable annuities

Variable annuities are a technically legal investment that can easily morph into a scam. In fact, the North American Securities Administrators Association has called variable annuities one of the top ten scams of the year because of the failure of many salespeople to tell their customers of the extensive fees and charges they involve. Unscrupulous salespeople love variable annuities because the commissions are as high as 12 percent, but unwary customers, including many older people who are particularly unsuited for this investment, have come to hate them. Variable annuities are touted as being able to bring a greater investment return than other investments, but as a general rule with ...