Corruption Has Many Faces - Sounding Off

Q. I am a lowly insurance agent and read your recent article on EIAs. RIAs are every bit as ignorant and unethical as life insurance people. I recently spoke with a man in OK (age 74) who wanted the best way to increase his estate using a $150,000 IRA. A $100,000 ife insurance premium would give him an immediate estate of $250,000, tax free. His RIA talked him into a Variable Annuity. Go figure. My wife just came out of 6 years with Variable annuities with her 403b and has lost basis, even with monthly contributions. I used to be securities licensed, but will not go near them because of the corruption in the marketing and sales and now in the underlying companies represented. The securities people are just jealous of a good life product and want to get a cut of it. I hope their hue and cry is seen for what it is--a greedy grab.

A. Just because someone is an RIA doesn't mean that they are fee-based and hence there exists all the conflicts of interest found in traditional brokers. I share your disdain for brokers and the entire commission-based financial services industry. That doesn't mean that I think EIAs are a better alternative.

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