Variable annuities can be a great investment, but that doesn’t mean they are suitable for everyone. In fact, variable annuities can be quite complex and carry many risks. If you suffer losses on variable annuities, your broker could be held responsible.
Continue reading to find out more about variable annuities, the risks, and whether you have grounds for a complaint with the Financial Industry Regulatory Authority (FINRA).
What Are Variable Annuities?
A standard annuity contract is an agreement between you and an insurance company. You purchase an annuity in either one lump sum or make regularly scheduled payments. Then, once the annuity matures, you receive payments at regularly scheduled intervals for a set period of time.
It’s usually a good option for individuals who want to guarantee a steady stream of income in the future. Variable annuities are a certain type of annuity value that can vary significantly based on the value and performance of an underlying mutual funds portfolio.
Risks of Variable Annuities
Simply investing in a variable annuity and suffering losses isn’t enough to have your case heard before a panel of FINRA arbitrators. You must be able to prove that your financial advisor is responsible for your losses in some way. In variable annuities, this is usually because a financial advisor failed to disclose the risks. For example, variable annuities are often incredibly complex.
They aren’t fixed, so investors run the risk of losing value in the annuity if the mutual fund’s portfolio does not perform well. Furthermore, there are high fees associated with variable annuities. If you hoped to make a withdrawal but you are currently in a surrender period, you may have to pay a large fee in order to do so.
Reach Out to an Investment Loss Lawyer
If you believe that you have been wronged by your financial advisor after investing in variable annuities, and are unsure of where to turn, get help from a qualified investment loss lawyer at Wolper Law Firm. Give us a call at 800.931.8452 or complete the convenient contact form included below to schedule your free, no-obligation consultation.