Did You Lose Money After Buying a Buffer Annuity?
Regulators are zeroing in on “buffer annuities.” A buffer annuity is a new kind of variable annuities that contain structured products rather than mutual funds. The fact that they contain structured products makes buffer annuities too complicated for the average mom-and-pop investor.
According to the brokers who sell them, buffer annuities use structured products to balance the risk of losing money. Brokers also say that buffer annuities emphasize principal protection and conservative account growth.
Regulators are concerned about buffer annuity safety
However, buffer annuities may not be as safe as they look. The Financial Industry Regulatory Authority has already received a number of complaints about buffer annuities. A representative from FINRA’s region west of Denver said that buffer annuity complaints have been received from every state in the area.
Regulators are now trying to determine if some investors – even those with a lot of experience with variable annuities – can fully understand the risks associated with buffer annuities. This also begs the question of whether the investment firms and stockbrokers selling these buffer annuities actually understand them.
Seek financial compensation for your buffer annuity losses
Have you lost money as a result of a bad buffer annuity? You might be able to file a legal action and try to get your money back. Please feel free to contact the Consumer Investor Resource Center to discuss the details of your case. We are happy to listen to your story and advise you of your legal rights and options.