Exchange Target for Hartford CRC Select

[wes75951]

My Hartford 10-yr.fixed annuity paying 5.65% qualifies for their Increased Surrender Value program. I'm thinking that it might be a good idea to accept the offer and exchange into another 10-yr. fixed annuity. I would plan on taking free interest withdrawal amounts monthly startingin 2021 or 22 at age 68. Would like to hear suggestions for an appropriate target for a potential 1035 exchange.

 

[AnonymousOne]

My Hartford 10-yr.fixed annuity paying 5.65% qualifies for their Increased Surrender Value program. I'm thinking that it might be a good idea to accept the offer and exchange into another 10-yr. fixed annuity. I would plan on taking free interest withdrawal amounts monthly startingin 2021 or 22 at age 68. Would like to hear suggestions for an appropriate target for a potential 1035 exchange.

What would your increased surrender value be?
What rate are you considering for your next 10 yr fixed?
Have your considered shorter duration fixed annuities before jumping into 10 year surrenders?
What goal aside from interest withdrawals do you have for this money? Beneficiaries?

Need a bit more info to help.

 

[wes75951]

What would your increased surrender value be?
What rate are you considering for your next 10 yr fixed?
Have your considered shorter duration fixed annuities before jumping into 10 year surrenders?
What goal aside from interest withdrawals do you have for this money? Beneficiaries?

Need a bit more info to help.

~51k, Delaware Pinnacle MYGA 10-yr. @ 3.65%, yes have & would consider, Goal #1 have greater cash value at the end of 10-yrs. than I would have by leaving w/Hartford, & #2 greater principal left to beneficiary, our only son. Thanks

 

[AnonymousOne]

~51k, Delaware Pinnacle MYGA 10-yr. @ 3.65%, yes have & would consider, Goal #1 have greater cash value at the end of 10-yrs. than I would have by leaving w/Hartford, & #2 greater principal left to beneficiary, our only son. Thanks

What is the increase in percentage they are giving you to surrender?
How many years left in Hartford do you have in the 10 years?

The increase is the important number. Before even seeing it I can be reasonably confident it will not make sense to surrender a 5.65% rate and renew a 10 yr myga in this interest rate environment.
Was this your idea or is an agent encouraging this?

 

[wes75951]

What is the increase in percentage they are giving you to surrender?
How many years left in Hartford do you have in the 10 years?

The increase is the important number. Before even seeing it I can be reasonably confident it will not make sense to surrender a 5.65% rate and renew a 10 yr myga in this interest rate environment.
Was this your idea or is an agent encouraging this?

Agent called to notify of offer. I declined, but I think the enhanced value is pretty attractive.
Contract value- $45.5k, MVA Surrender value - $49.4k, Increased surrender value 51+k (cannot recall exact value)

Hartford end of contract - $57.3k
Exchange to 10-yr. @ 3.65% puts value at original term $58.9k.

 

[AnonymousOne]

Agent called to notify of offer. I declined, but I think the enhanced value is pretty attractive.
Contract value- $45.5k, MVA Surrender value - $49.4k, Increased surrender value 51+k (cannot recall exact value)

Hartford end of contract - $57.3k
Exchange to 10-yr. @ 3.65% puts value at original term $58.9k.

The enhanced value is extremely attractive if you wanted out of the contract to spend the money, but that's not what you want.
It seems you would have about 4+ years left in your Hartford. In four years you have 59k as opposed to 57k, which is a plus, BUT you are then committed to 6 more years at 3.65%. Which is where this deal falls short when considering today's interest rates compared to 2 years down the road.

The enormous deal breaker for a surrender is if your contract has a guaranteed minimum 3% renewal rate. Please call immediately and see what your contract has.

 

[wes75951]

The enhanced value is extremely attractive if you wanted out of the contract to spend the money, but that's not what you want.
It seems you would have about 4+ years left in your Hartford. In four years you have 59k as opposed to 57k, which is a plus, BUT you are then committed to 6 more years at 3.65%. Which is where this deal falls short when considering today's interest rates compared to 2 years down the road.

The enormous deal breaker for a surrender is if your contract has a guaranteed minimum 3% renewal rate. Please call immediately and see what your contract has.

Yes, will renew at min. of 3% guaranteed.

 

[AnonymousOne]

If it were me, I would not be replacing with another 10 year myga.
I would certainly consult an investment advisor and determine which investment would best suite your goals. I understand the simplicity of rolling into mygas but it is rarely an adequate "financial plan"

 

[wes75951]

Anyone else care to comment?