Variable Annuities

Securities Fraud Lawyers Assisting Residents of Texas

For many Americans, variable and fixed annuities are a key part of an investment and retirement plan, even though they probably should not be. Many investors and retirees do not understand the nuances of variable and fixed annuities, creating the perfect opportunity for a stockbroker to take advantage of them and their trust. The knowledgeable securities lawyers at Ajamie LLP have helped many people throughout Texas who have been burned by their brokers. Our lawyers have substantial experience in finance and securities litigation, and know what it takes to hold a negligent broker responsible for his or her negligence or intentional wrongdoing. Variable and fixed annuities are often marketed as a hedge against volatility in uncertain times. They are marketed as ways to protect principal. But, they have limited upside and can come with high commissions and large penalties for early withdrawal. They are marketed aggressively to older people and people near the end of their working careers. Sometimes they are a good fit, but not always. Some older investors need liquidity to cover normal living expenses and annuities do not always offer this. At any given time, there always seems to be a significant percentage of investors who are unhappy with their annuities or who think they were tricked into buying something they really didn’t understand.

Were Annuities Right for You?

In many typical situations a different type of investment would have been a better choice than an annuity. Unless you fit into one of the three categories below, chances are that you would have benefited from an investment other than an annuity.

  • Someone with an unnecessary or high- fee cash-value life insurance policy who would like to get out but faces a large tax liability because the cash value of the policy is higher than the premiums paid. In that case, the investor can take advantage of the 1035 tax-free exchange to roll the cash value of the policy over into a variable annuity, carry over the cost basis and continue tax-deferred growth with the lower-fee investment options (compared to life insurance) that the annuity provides.

  •  An investor who is not comfortable investing in the stock market without some type of guarantee should the market be down when the investor dies.

  • Some complex estate planning strategies that can only be accomplished with a variable annuity.

Unless you fit into one of the categories discussed above, chances are that an annuity was not right for you.

Enlist a Texas law firm to Pursue a Fraudulent Broker

If you have been the victim of stockbroker fraud or similar misconduct, Texas-based Ajamie LLP can help. Experiencing an unexpected and avoidable financial loss as the result of a broker’s wrongdoing can be a stressful and devastating experience. We can make sure that your rights are asserted along every step of the way and that you pursue the compensation you deserve. We serve people throughout Harris, Montgomery, and Fort Bend counties, as well as other areas of Texas and the entire country. Call us at 713-860-1600 or email info@ajamie.com to set up a free consultation.