Variable Annuity
Twice in the last 6 months, I was asked to assess and comment on a variable annuity? currently offered by AXA Equitable. The history of many consumers plan their sales force is that regardless of whether the underlying funds work well, your "guaranteed" minimum return of 6% per year.
Although this is hardly the whole truth, in defense of AXA representatives who are out there selling this stuff, can not reasonably explain each line in a prospectus for securities which can often include dozens of pages of fine print. That said, since the guarantee of 6% is something that came twice in 6 months, the question is, "this product can deliver a guarantee of 6%, while at the same time provide potential increase better performance if the funds underlying investment in the product do better than that? "
the short answer is no. So what's the catch? How can they say it does, when it does not?
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