BEWARE: Top Ten Investment Scams Re-Cycled for 2022

Join Our Mailing List

Beware Physicians and all Investors
[By Paladin Research]





Your thoughts and comments on this ME-P are appreciated. Feel free to review our top-left column, and top-right sidebar materials, links, URLs and related websites, too. Then, subscribe to the ME-P. It is fast, free and secure.

Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact:


Comprehensive Financial Planning Strategies for Doctors and Advisors: Best Practices from Leading Consultants and Certified Medical Planners(TM)

2 Responses

  1. The Myth Of “Free” No-Expense Fixed Or Equity Indexed Annuities
    [Interest Rate Spread Is Still A Cost]

    When investors hold investment accounts subject to an ongoing AUM fee, they can clearly see the expense being subtracted from the account on each statement. Similarly, variable annuities have an explicitly disclosed expense ratio that is subtracted from the account balance on an ongoing basis.

    However, in the case of fixed or equity-indexed annuities, investors only see their contributions into the account, and a return on the account, leading many to believe (and many insurance agents to claim) that such annuities are “free” or have no cost (and that any commissions paid to the agent are “paid by the insurance company, not the client”).

    Yet the reality is that fixed annuities do still have an ongoing cost; it’s just that instead of paying the expenses and compensation to the advisor directly out of the end value of the account each year, the costs are subtracted from the annuity company’s gross returns in the form of an interest rate spread before paying the net remaining return to the investor.

    OR, according to colleague Mike Kitces, the interest rate spread is subtracted before the remaining yield is invested into options to provide the investor’s participation rate in the index being tracked.

    Dr. David Edward Marcinko MBA CMP™


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: