Tags: Warren | insurance | annuities | retire

Sen. Warren Starts Attack on Retirement Annuity Brokers

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Monday, 18 May 2015 12:14 PM Current | Bio | Archive

The Baby Boomer generation has begun its retirement phase, producing a soaring need for professional guidance on planning for their future financial needs.

The Social Security system is clearly under water and every other so-called government solution is, like everything the government does, doomed by the very politics that created it.

Only the commercial insurance industry has the ability to provide the way out for the millions of Americans who will need personalized plans to meet their retirement financial challenges.

Instead of supporting the life insurance and annuity companies, Sen. Elizabeth Warren, D-Mass., announced she is launching an investigation of the 15 major annuity providers.

She is the darling of the far left wing of the Democratic Party, who are dedicated to eliminating the private financial industry and put government in total control of everyone's life.

Her claim is that she is concerned about the conflicts of interest for the sellers of annuities and other investment products offered by life insurers and brokerages.

The insurance industry has rules that provide stringent ethical requirements and best business practices. Each state regulatory agency or department enforces prohibitions on errant behavior by those people it licenses.

Ethics and best business practices are unknown concepts by those running the government.

Sarcastically speaking, it's defies credibility that anyone in Congress or in the executive branch would know what a conflict of interest looks like even if they had their nose rubbed in it. (I include in this Republicans as well as Democrats.)

Warren is picking up on new proposed rules by the Department of Labor, which is supposedly concerned that retirees may get steered into less-than-ideal investments. Those investments being, in the government's view, anything other than a government-provided and controlled program.

The problem is that government programs are entirely creatures of political creation. They are administered by the government and the government can change benefit terms and conditions both prospectively as well as retroactively. A promise by the government is no promise at all.

Private industry is entirely, as they said in the movie The Wizard of Oz, a horse of a different color. Commercial annuities issued by companies, like the ones under investigation by Warren, are binding contracts that can be relied upon to be fulfilled. Commercial insurance companies already follow best practices and do not accept misrepresentation, falsification or any of the other perversions that pass for practices acceptable as business as usual by the government.

While government has its programs based on the one-size-fits-all principle subject to the politics of special interest voting blocks and political correctness, commercial insurance companies are in a highly competitive business and provide their customers with a wide diversity of choices, features and benefits.

There is one primary characteristic that differentiates the regulation of the insurance industry from the operations of the government. The primary directive for an insurance company is to be solvent. For the government, solvency is not even on the list.

Anyone retiring or even thinking about retiring one day faces a daunting financial challenge in making sure they will have enough financial reserves to maintain their lifestyle and necessary medical care.

The one chance America's retirees have to guarantee their financial security when they need it most is with life insurance and annuities.

Warren has made another strategic move against the financial industry in the continuing assault by the political left wing.

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The Baby Boomer generation has begun its retirement phase, producing a soaring need for professional guidance on planning for their future financial needs.
Warren, insurance, annuities, retire
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2015-14-18
Monday, 18 May 2015 12:14 PM
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