There is a new type of variable annuity called a buffer annuity that is beginning to gain popularity among financial advisors who sell these products. It is highly complex and uses structured products — not mutual funds — in the sub account as the underlying investment.
FINRA has started to see complaints about these buffer annuities, according to InvestmentNews.
We are investigating these buffer annuities because they are untested in a financial storm and most investors do not understand them, and do not meaningfully understand the risks they face. These buffer annuities also carry substantial imbedded fees.
If you have suffered a loss from a buffer annuity, or any variable annuity, please contact our firm for an evaluation of your investment.