It never ceases to amaze me how securities firms spend so much time designing products to try and mimic the lifetime income benefits of fixed indexed annuities and lifetime income benefit riders. So much wasted energy is spent designing investment strategies when the solution is right in front of their faces. You have to wonder if these guys ever climb out of their box to find out what we already know.
Why do they do this? Heard of the saying, “Don’t step over a dollar to pick up a dime”? In this case, they are definitely not stepping over a dollar. Fees are always the motivation when the securities industry tries to mimic a guaranteed product with a risk product.