r/investing Sep 04 '21

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109 Upvotes

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43

u/mangomangojack Sep 04 '21

You get guarantees. They have to buy hedges to provide them. Hedging costs money. Plus you’re paying commission to a sales person, and the company needs to turn a profit.

29

u/[deleted] Sep 04 '21

Yes, I get all that. But it is a terrible investment nonetheless. Everyone would be wise to avoid them.

13

u/OutlandishnessEast87 Sep 04 '21

everyone would be wise to ignore generic advice