6/1/09; DAUGHTER AND POA OF CLIENT CLAIMS SHE WAS INFORMED AT THE TIME OF PURCHASE THE MONEY WOULD BE TIED UP FOR 10 YEARS EARNING INTEREST AND THAT THE BENEFICIARY WOULD CONTINUE TO RECEIVE THE $2,200.00 PER MONTH UNTIL THE 10 YEARS HAD ENDED. SHE CLAIMS FA ALSO INFORMED HER THAT AFTER THE 10 YEARS THE BENEFICIARY WOULD THEN RECEIVE FUNDS FROM THE ANNUITY. POA CLAIMS SHE HAS SINCE LEARNED THAT IS NOT CORRECT AND THAT CHANGES TO THE INVESTMENT CAN NOT BE MADE. CLIENT WANTS THE INVESTMENT TO BE CANCELLED AND THE FUNDS INVESTED RETURNED. CLAIM COULD EXCEED $5,000

$5,000.00

THE METLIFE FIXED IMMEDIATE ANNUITY WAS ISSUED ON 6/1/09 & THE FIRST PAYMENT OCCURRED ON SAME DATE. THERE HAD BEEN SEVERAL MEETINGS WITH POA & VARIOUS OPTIONS WERE DISCUSSED. SPECIFICALLY, THE NEED TO HAVE CLIENT PLACED IN A HEALTH CARE FACILITY WAS DISCUSSED & FA WAS INFORMED OF WHAT THE COSTS OF HER CARE WOULD BE. BASED ON OUR REVIEW, THE NEED TO MAXIMIZE INCOME TO MAINTAIN CLIENT'S CARE WAS MOST IMPORTANT. THE DETAILS OF IMMEDIATE ANNUITY WERE DISCUSSED TO INCLUDE AMOUNT TO INVEST, RISKS, AS WELL AS PAYOUT OPTION OF LIFETIME INCOME WITH A 10 YEAR PERIOD CERTAIN. PAYOUT OPTION DOES ALLOW FOR MONTHLY PAYMENT OF $2,200.00 A MONTH FOR LIFETIME OF CLIENT OR FOR A PERIOD OF L0 YEARS (WHICHEVER IS LONGER). FA SUGGESTED KEEPING A PORTION OF THE FUNDS IN CASH POSITION; HOWEVER, POA DIRECTED HIM TO INVEST ENTIRE AMOUNT AVAILABLE TO MAXIMIZE MONTHLY PMT. POA WAS FULLY AWARE ELECTIONS MADE WITH IMMEDIATE ANNUITY WERE LOCKED IN & COULD NOT BE ALTERED AT A LATER TIME. CLIENT EXECUTED IMMEDIATE FIXED ANNUITY TIME PURCHASE LTR, SWITCH: FUND TO ANNUITY & SWITCH: REPOSITION OF ASSETS ACKNOWLEDGEMENT LTRS. YOU WOULD HAVE RECEIVED THE CONTRACT AT THE TIME OF PURCHASE WHICH DOES PROVIDE A RIGHT TO CANCEL OPTION WITHIN10 DAYS FROM TIME OF PURCHASE. OUR RECORDS INDICATE POA DID NOT ELECT TO EXERCISE THIS OPTION. BASED ON REVIEW, IT APPEARS IMMEDIATE ANNUITY WAS PURCHASED BASED ON DISCUSSIONS WITH POA AND WITH HER AUTHORIZATION AS POA. THE IMMEDIATE ANNUITY WAS SELECTED AS BEST OPTION TO MAXIMIZE INCOME TO MEET NEEDS OF CLIENT. THE FUNDS INVESTED WITHIN THE IMMEDIATE ANNUITY WERE NOT IRA FUNDS; HOWEVER, THE IMMEDIATE ANNUITY IS A TAX DEFERRED INVESTMENT ALLOWING FUNDS REMAINING WITHIN THE IMMEDIATE ANNUITY TO NOT BE TAXED UNTIL PAID OUT TO CLIENT. WE RECOMMEND SPEAKING WITH TAX PROFESSIONAL AS TO MANNER WOULD BE TAXED ON DISTRIBUTIONS. CLAIM DENIED.