Short of seeking restitution, a new advisor can still be helpful. As an advisor to the aggrieved annuity owner, you may develop several different objectives, depending on the circumstances. In the case of older annuities, surrender charges may have declined to the point that it makes sense to suggest a 1035 exchange to a lower-cost deferred annuity where two years of reduced expenses alone will overcome the surrender penalty. Where surrender fees are overwhelming, as in Gloria's case, a better alternative may be to gradually work out of the product by using the annual free withdrawal terms.

When the relationship to the originating advisor is untenable, changing to a "house account" may help free the holder to make changes in the investment selections. In this case, of course, the new advisor will need to become familiar with the list of investment alternatives available to each policy and craft an annuity portfolio that makes sense in the client's overall investment context.

J. Michael Martin, JD, CFP, is president of Financial Advantage in Columbia, Md.

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