They don’t need pie-in-the-sky; they need reliable information, to base their decision on.
November 14, 2023 by Sheryl J. Moore
I am not sure I agree with Ken Nuss.
“Back-testing based on historical index performance gives an idea of how a particular indexed annuity sub-account might perform in the future. While past performance is not a guarantee of future performance, it’s a good starting point.”
Considering that there are indexed annuities illustrating linear returns of 17%+, I would say that the back-testing of indexed annuities should be entirely disregarded in the evaluation of an annuity purchase.
We need to set reasonable expectations with consumers, on what they can expect to earn from indexed annuities. They don’t need pie-in-the-sky; they need reliable information, to base their decision on. -sjm