facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog search brokercheck brokercheck Play Pause

The DOL's Fiduciary Rule: A Game-Changer for Investors in Fixed Index Annuities

Will Help Combat Deceptive  Advisors Who Claim to Be Fiduciaries While Selling Index Annuities

The introduction of the DOL’s fiduciary rule is set to bring significant financial benefits to retirement investors, particularly those rolling their funds into fixed index annuities. Some advisors claim to be fiduciaries and then sale expensive annuity products. Here’s how the rule will help investors:


Substantial Savings

According to Morningstar, retirement investors rolling assets into fixed index annuities will save over $32.5 billion in the first decade and an additional $32.5 billion in the subsequent decade. Some financial advisors exploit the fact that these products aren’t currently covered by the SEC’s Regulation Best Interest.


Reduced Commissions and Improved Returns

While most fixed index annuities lack explicit fees, investors typically incur costs through lower returns, which cover the insurance company’s commissions and distribution expenses. With the new fiduciary rule, insurance producers must adhere to impartial conduct standards, likely resulting in reduced commissions. This reduction translates to lower implicit costs and improved returns for investors.


Lower Surrender Fees

 The fiduciary rule mandates that recommendations to purchase annuities be in the best interest of the investor. This means products will better align with the investor’s circumstances and preferences, leading to fewer instances of liquidating annuities and incurring high surrender fees.

 Overall, the fiduciary rule promises to enhance the financial well-being of investors by reducing costs and ensuring that investment products are better suited to their needs. As a result, retirement investors can look forward to more substantial savings and better returns on their fixed index annuities.

We encourage anyone considering the purchase of a fixed index annuity seek a complimentary second opinion, we'll be glad to analyze the annuity, show you the true cost and explain the fee structure in detail.