Investment & Financial Articles
Title: Conservative Investment Management Pays for This Firm
Author: Tony Novak
Article:
It is genrally not a good idea for an independent financial
adviser to endorse specific companies or products by name and
this article is not intentionally written as an endorsement. But
when another industry magazine printed an article sub-titled
"
American Skandia's Stroke of Genius" for viewing by financial
professionals only, it seems apparent that the outstanding
actions of this company deserve further comment in public media.
In short, variable annuities are insured stock accounts where a
private insurance company guarantees that investors will not
lose money. That guarantee can be expensive to insurance
companies, especially when the stock market perfumes poorly as
is has in the past few years.
Some variable annuity companies are facing significant losses
from these guarantees, to the point of threatening the financial
stability of some very popular names in the financial services
industry. But one of the largest issuer's of variable annuities,
American Skandia, has been able to avoid this financial risk
through the use of unique but fundamentally sound investment
management and accounting. In other words, by setting up
automated systems to automatically manage money more
conservatively during periods of declining stock prices,
American Skandia has significantly outmaneuvered the market and
avoided risk for its investors.
American Skandia is one of the few investment companies that
offers a no-load account without investment commissions through
independent investment advisers. It own distribution costs are
minimal because the company does not maintain an internal sales
force, but relies instead on the recommendations of independent
financial advisers.
About the author:
Tony Novak is an independent writer and financial adviser in
Narberth PA who provides OnlineAdviser services through
MedSave.com and FreedomBenefits.org
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