Gaming the System in Annuity Illustrations
February 5, 2024 by David Blanchett
To say that using historical returns in annuity illustrations for index-linked strategies is ripe for potential misrepresentation would be an understatement.
The index-linked annuity industry, which is currently primarily for fixed indexed annuities, continues to evolve, offering crediting strategies that are anything but vanilla. Recently, though, a strategy caught my eye on the S&P 500 index that seems too good to be true — which it probably is.