Apologies if this has already been posted, but I just saw it and thought about those who occasionally ask for concrete reasons why variable annuities have such a poor reputation here. This shows a good example of the kind of potential problem that can be buried in the pages of fine print.
New Pressure on Annuity Holders
New Pressure on Annuity Holders
Hartford's new move may be the first that could result in owners inadvertently losing their long-held guarantees. The company is exercising what it says is a contractual right to impose new investing restrictions in order for owners to maintain guarantees, according to a letter dispatched last month by Hartford to annuity holders. It is requiring at least 40% of clients' money to be in fixed-income funds. If clients don't allocate their holdings accordingly by Oct. 4, the guarantee "WILL BE REVOKED," the letter declared in bold type.