It amazes me what makes its way into my inbox these days.

This time I received an e-mail about an annuity that pays an 11% commission, wow!

Think about that, for every $100,000 you place into this annuity, you (the agent) make $11,000 - that is huge.

Notice how the details to the left are almost non-existent though? Most of the "features" are just throwaway gimmicks, what is missing is what the term, rate and surrender charges are...you know, the important stuff.

How much could this annuity actually pay in interest when the company has to pay 11% out to an agent and then credits the client with a 5% premium bonus, that's fully 16% of the amount deposited. You can be sure the client isn't making much interest.

How these companies can get away selling such junk is beyond me. This is why we need a Conflict of Interest Rule.

Scott Dauenhauer, CFP, MPAS, AIF