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Article: The beauty of VAs shines through--especially today. (Perspective).(variable annuity industry)(Brief Article)
- Article from:
- National Underwriter Life & Health-Financial Services Edition
- Article date:
- October 7, 2002
- Author:
CopyrightCOPYRIGHT 2002 Summit Business Media. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Many in the variable annuity industry have been telling customers this all along: One of the greatest advantages of owning variable annuities is that you can move your investments within your VA between stock, bond, money market and fixed accounts, all with "no current taxation."
Today, industry statistics are proving that point emphatically.
Recent figures show that VA investors moved more than $15 billion out of equity subaccounts in July 2002. What happened to those dollars? Most experts agree that those liquidations were recaptured in bond and money market subaccounts and, increasingly, in fixed accounts. In addition, net exchange activity out of ...