Fees

This discussion topic was originally posted in the form of a comment.

The general topic is how annuities compare to bonds.  It is a natural question since both annuities and bonds provide owners with fixed payments.

We moved the comment here so that it can surface to a larger audience and hopefully generate further discussion and comments.

As noted below, the conceptual basis for this content is based on a great paper written a few years ago by Jason Scott--the Director of Retiree Research at Financial Engines.

The original post is as follows:

A recent report from JPMorgan Chase adds fuel to the fire of Bogle-heads and others who support the case against active management of mutual funds.

In other words, in contrast to "passively managed" investment vehicles such as index funds and ETFs, funds that employ highly paid fund managers to "actively manage" securities selection and portfolio management are creating no value through that active management.

In fact, actively managed funds appear to be destroying value for investors on a relative basis.