Press Release

Release No. 1107-09
November 27, 2007

RAYMOND JAMES PUBLISHES GROUND-BREAKING ANALYSIS
OF VARIABLE ANNUITY LIVING BENEFITS FOR ITS ADVISORS

ST. PETERSBURG, Fla. – In what Scott Stolz, president of Raymond James subsidiary Planning Corporation of America (PCA), calls a first for Raymond James and, perhaps, the industry, PCA recently published an exhaustive analysis of the living benefits of each of the 17 variable annuity products offered through the firm for its financial advisors and their clients.

“While it may come in various forms,” explained Stolz, “the number one question we receive from advisors is ‘who offers the best living benefit?’ The confusion reflects the difficulty of keeping up with the vast number of constantly changing alternatives. Despite the complexity, it is clear that the focus on variable annuities has shifted from the investment features of the contract to insurance.”

In order to provide Raymond James’ financial advisors with an analysis of the products and living benefits most appropriate for their clients’ needs, PCA’s published report is similar to other industry research. Each analysis contains three parts:

1. A description of each benefit along with a comparison of the various benefits if the product offers more than one,
2. A general summary of PCA’s view of the benefit design – both pros and cons – and,
3. A recommendation as to when the benefit should and should not be used.

PCA also published a report that discusses when the three types of living benefits – Guaranteed Minimum Withdrawal Benefit (GMWB), Guaranteed Minimum Income Benefit (GMIB) or Guaranteed Minimum Account Benefit (GMAB) – are most appropriate. The firm suggests advisors review this report prior to reading the individual product analyses in order to aid in the understanding of the basis of the opinions presented.

“No variable annuity should be purchased solely for the living benefit,” emphasized Stolz. “In our view the purpose of either a GMWB or a GMIB is to protect a current or future income stream on an asset that is invested in stocks and bonds against a significant and sustained decline in the market.

“Once we concluded that these benefits were really ‘income insurance,’ it became quite easy to set criteria for what we thought were the best of breed features of each benefit.”

In addition to publishing the white paper, the firm has also established a feedback page for advisors on the company’s intranet and invited them to post questions and comments.

“Our analysis has been six months in the making,” said Stolz, “with each insurance company having the opportunity to review or refute our findings. I don’t believe there is another more comprehensive or useful resource available for our advisors in this area. I am very proud of our team for their work and am gratified to have heard already from several advisors how tremendously helpful this guide will be in allowing them to serve their clients better. Frankly, this is just one more demonstration of the advisor-focused approach that drives our work here at Raymond James.”

Raymond James Financial (NYSE-RJF) is a Florida-based diversified holding company providing financial services to individuals, corporations and municipalities through its subsidiary companies. Its three wholly owned broker/dealers (Raymond James & Associates, Raymond James Financial Services and Raymond James Ltd.) and Raymond James Investment Services Limited, a majority-owned independent contractor subsidiary in the United Kingdom, have a total of more than 4,750 financial advisors serving approximately 1.6 million accounts in 2,200 locations throughout the United States, Canada and overseas. In addition, total client assets are currently near $215 billion, of which approximately $37.1 billion are managed by the firm’s asset management subsidiaries.

PCA is a wholly owned subsidiary of Raymond James & Associates, providing insurance and annuity products and services to financial advisors of Raymond James, and select correspondent firms.

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For more information, contact Anthea Penrose at 727-567-2824

Please visit the Raymond James Press Center at raymondjames.com/media.