December 22, 2009

Letter to the Editor
Dallas Morning News
508 Young St.
Dallas, TX 75202

To the Editor:

The millions of retirees in the United States have different financial goals, different levels of risk tolerance and different combinations of retirement assets. Sweeping generalizations that don’t acknowledge these individual differences, such as those in the recent article “Why you shouldn’t buy a variable annuity with living benefits,” Dec. 21, 2009, can be misleading and may harm the financial interests of retirees who follow this advice.

Living benefit annuities offer retirees both guaranteed income and complete liquidity. If there is a change in the life circumstances of a retiree with a living benefit annuity, he or she retains the option of removing some or all of the assets invested in the annuity and reallocating them to an area of greater need. This appeals to consumers who are looking for flexibility.

The best financial advice recognizes individual differences and does not dismiss valuable financial products that address specific needs.

Sincerely,

Frank Keating

Frank Keating is President of the American Council of Life Insurers. He is also a former two-term Oklahoma governor.