Bob Kargenian Quoted in InvestmentNews
Bob Kargenian was quoted in a Letter to the Editor in InvestmentNews, a leading source for news, analysis and information essential to the financial advisory community.
In his editorial, entitled “Complicated products mar profession,” Bob Kargenian said, “I read with interest the guest blog by Mark Fitzgerald on fixed-index annuities [in the Nov. 12 issue]. I had to laugh at his comment that ‘clients also should understand the FIA’s crediting strategies, and that while their annuity’s value will grow with the market, the upside may be limited by an applied rate.’ Hell, most advisers don’t even understand these products let alone clients.
“I’ve been practicing for 36 years, and when I have to call an insurance company to understand the language in their contract on crediting strategies, and it takes reading the fine print that the surrender charges last for 14 to 16 years, there is something seriously wrong with our industry. These products, along with the vast majority of nontraded REITS, are simply trash.
“Our overall industry will never be a true profession as long as this crap continues to be peddled, and it is mostly sold by insurance companies and independent broker-dealers. The highest and most powerful people in our industry and in Washington don’t care about the fiduciary rule, and continue to protect the firms rather than clients. They have a powerful lobby indeed, and it’s quite sad.”