Money in Your Pocket: Putting the clamp down on variable annuity holder choices

SYRACUSE, N.Y. (WSYR-TV) - There are changes in the variable annuity world.  One big change is happening with a major annuity issuer, Hartford Insurance.

Hartford is looking to get rid of about 60 actively managed mutual funds in the variable annuity.

This proposed change effects about 15 billion dollars in client money with Hartford.

It would whittle down the managed fund from 60 to 11.

Why is this a problem?

Choices are taken away from people and investors.

If you’re in the annuity and want to change funds, you’re limited to the 11 new funds.

The good news is that the change hasn’t gone into effect.  Hartford’s filing with the Security Exchange Commission has been challenged by a couple of competing companies.

Financial Advisor Rich Reagan is interested in the final ruling, but he say that if one company is allowed to cut down the number of offered funds, he wouldn’t be surprised to that be a trend in the industry.

 

Financial adviser Rick Reagan appears regularly on NewsChannel 9.

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If you have a question for Rick, you can e-mail anytime at themorningnews@localsyr.com


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