Annuity maven

[scagnt83]

Annuity is 4 years old
"Why does the statement show a contract value for $82,812.71 - a difference of $4,070.21?"
That's the point.
Calling customer service and getting somebody in India is not helping.
I will give the agent another week and hopefully get an answer.

Are you able to post more of the statement?

You have my email, feel free to email it to me if you want me to take a look.

India? I think I know which carrier. Starts with a C? Used to start with an A?

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At 4 years, MVAs and Surrender Charges could possibly be the issue here. Hopefully that is the case.

 

[Lloyds of Lubbock]

I am assuming that is the case.
Looking at this I am going to have a flat year.
I will have zero return plus an expense charge.
It may pay to eat the surrender and roll it into a MYGA 5 and 7 year rates are pretty good.
I will give the agent till Friday.
Until then, everything is conjecture

 

[scagnt83]

I am assuming that is the case.
Looking at this I am going to have a flat year.
I will have zero return plus an expense charge.
It may pay to eat the surrender and roll it into a MYGA 5 and 7 year rates are pretty good.
I will give the agent till Friday.
Until then, everything is conjecture

If its 4 years out of 10, I doubt it would make much sense.

If it is indeed MVAs and Surrender charges, that is not the actual Account Value. Its the Surrender Value.

Based on those values, you made 10%+. You were charged 2%. For a Net of 8%.

Thats a strong return for a product that provides a 0% floor.

The expense of 2% is pretty steep. Maybe they did not drop the Rider after all?

It could also be an expense charge related to an Index Option chosen. So that could potentially be reduced if that is the case.

If you are 4 out of 10, your probably looking at an 8% surrender charge. At 5%, that puts you positive 2% after 2 years. 1% annualized for the first 2 years. Not a great trade off imo.

 

[Lloyds of Lubbock]

If you use their numbers with the unknown charge The year started at 79.8 and ended at 82.8 ROR =3.75 after expenses
If you take out the unknown charge start at 79.8 end at 88.5 a bit more than 10%. if this was the case this thread would not be here.
Actually if it was 6% I would be happy.
The rider charge was not dropped.
It will bring down the $1600 charge to about $1200
My surrender charge is 5%
If that charge cannot be explained to my satisfaction, I am more than happy to take the hit to have better control of my money.

 

[Lloyds of Lubbock]

For all your help ....thank you.
The company is Allianz.
As this was explained via email from the carrier:
The top number listed were the gains previously earned in the contract.
Fees and charges have eroded over 50% of my gains.
Working through the math, I can come pretty close.
While I posed a number of questions, they chose to answer only one.
I will say the response was timely.
I will just put it in hold for now and wait for a market bounce back (hopefully).

 

[Allen Trent]

For all your help ....thank you.
The company is Allianz.
As this was explained via email from the carrier:
The top number listed were the gains previously earned in the contract.
Fees and charges have eroded over 50% of my gains.
Working through the math, I can come pretty close.
While I posed a number of questions, they chose to answer only one.
I will say the response was timely.
I will just put it in hold for now and wait for a market bounce back (hopefully).

Did they say if this is the account value listed or the surrender value?

how can the top number be gains previously in the contract, isn't most of that what you originally deposited yourself? If 4 years ago, I am guessing you put in $65k to 75k depending on if that statement is showing account value or surrender value.

Reminds me of the garbage Allianz statements when they were a leader in the 2 tiered Index Annuities that rightly got them and a few other carriers sued in class action lawsuits & action taken by several Attorneys Generals.

If you have your policy contract, read the definitions. The words on the statement have to be defined in the contract. "Contract Value" will be defined in the policy to tell you of that is the surrender value along with MVA charge.

If that is the case, your policy made almost 8-9% last year in the account value that earns index credits on the account value not the surrender value. I believe

 

[Lloyds of Lubbock]

Alan
I deposited about 71K.
The first year the agent called me about locking in which I did and I got a great return around 20%.
This netted me about 10 % as my options are split and I have some downside protection.
Last year was a great year in the market and we did the same thing and I got an ok return about 7%. which netted a total return or almost 4%
3 things are clear
1.From the inception of this contract I am earning about 3.7% net of expenses.
2.I clearly do not understand this contract.
3.Based on what I told the agent I wanted this product was not a great choice. ( A bit of hindsight, no slight on the agent)
Getting answers from Allianz is like pulling teeth.
You submit 3 questions 1 gets answered.
As the market is getting hammered, making any changes would probably not be in my best interest, so I am going to put this on the back burner and stop getting aggravated over it

 

[Lloyds of Lubbock]

If that is the case, your policy made almost 8-9% last year in the account value that earns index credits on the account value not the surrender value. I believe.
Start of the year 79,819
Year end 82,812
ROR roughly 3.7 net of expenses
The account that earns the credits did 7%
I think this sums up my feelings about this product


That's all folks!

 

[Allen Trent]

Alan
I deposited about 71K.
The first year the agent called me about locking in which I did and I got a great return around 20%.
This netted me about 10 % as my options are split and I have some downside protection.
Last year was a great year in the market and we did the same thing and I got an ok return about 7%. which netted a total return or almost 4%
3 things are clear
1.From the inception of this contract I am earning about 3.7% net of expenses.
2.I clearly do not understand this contract.
3.Based on what I told the agent I wanted this product was not a great choice. ( A bit of hindsight, no slight on the agent)
Getting answers from Allianz is like pulling teeth.
You submit 3 questions 1 gets answered.
As the market is getting hammered, making any changes would probably not be in my best interest, so I am going to put this on the back burner and stop getting aggravated over it

Is this a RILA ( variable Annuity- Registered Index Linked Annuity) or a FIA (Fixed Index Annuity)? sounds more like a Variable RILA if you have downside buffer or floor compared to a fixed index that would normally have 0% floor. You can take losses on a RILA but shouldnt have any losses on an FIA (other than rider costs & surrender fees)

RILA requires the rep to be securities licensed because it is invested in the market, FIA doesnt require securities licensing as none of the money of a FIA is actually in the market at all.

IF it is a RILA, you may have something like a 10% buffer, meaning you take no losses if the index is down 0-10%. But you take all losses over & above 10% between the starting & ending date of the strategy you chose (IE: 1- 5 -7-10 year). Or it could have a -10% floor, meaning you take all losses from 0% to -10%, but none of the losses over -10%.

 

[Lloyds of Lubbock]

It is a RILA I think.
Allianz Index Advantage IncomeSM
Variable Annuity
I am confused as to why my values have gone down since Trump shi##ed the market if I have a 20% buffer.
I have wasted enough time and negative energy on this.
I made a small gain, I didn't lose money and when an opportune time presents itself I will replace it.