I just read about this. I have 2 fixed ones, one paying 2.3 and the other 1.25, and a fixed index that pays 50% of what the dow does for the year. Should i think about doing this 1035 exchange into one of them? If so, which one? Also, does this mean that I could take out one that paid for example, a 8% first year bonus and then after i get the bonus, do a 1035 exchange into one of my better ones?
The 1035 Exchange Question?
- Thread starter jasonten
- Start date
I'm not sure exactly what you're asking here. Are you trying to combine the three annuities into one? Start a new contract? Are these your annuities? A client's? Give us some more details here. What products and carriers are you using? Are they out of surrender?
No, not right away, at least. The insurance companies aren't going to let you do a "hit and run" to collect their bonus and then take it somewhere else. The bonus will either be vested, meaning you don't have the full amount available for surrender until the end of the surrender period (or longer), or the surrender charges will have recovery of the bonus built in. Either way, not going to work.
If these are your annuities, you should really speak to a good advisor in your area who can help you navigate the different products and options available to you.
- 15,041
Jason, it is great that you are asking questions. At this point for your own personal benefit and gain, I strongly recommend you sit down with an agent or adviser and focus on your personal strategy.
The forum is great and you will get some good advice, you will also get some bad advice. And even if all you get is good advice, it won't be in complete agreement. Right now you run the risk of several hands on the tiller. Even if everyone means well, there will be a fight for control and your financial ship will be adrift. Pick someone you want to work with and limit the hands on the tiller, just you and your adviser and you should work in sync.
Also, something to keep in mind. Unless you are willing to post your policies on the forum, which I wouldn't recommend without redacting personal data, we are all just guessing at what you have, how it has preformed and what options you have with existing policies. The advice you get will be based on assumptions made off incomplete data.
The forum is great and you will get some good advice, you will also get some bad advice. And even if all you get is good advice, it won't be in complete agreement. Right now you run the risk of several hands on the tiller. Even if everyone means well, there will be a fight for control and your financial ship will be adrift. Pick someone you want to work with and limit the hands on the tiller, just you and your adviser and you should work in sync.
Also, something to keep in mind. Unless you are willing to post your policies on the forum, which I wouldn't recommend without redacting personal data, we are all just guessing at what you have, how it has preformed and what options you have with existing policies. The advice you get will be based on assumptions made off incomplete data.
- Thread starter
- #4
oh ok well i didnt know 1035's would be so complicated. but yeah i was just wanting to combine them all into one, hopefully the one with the best return. all of them are just about 2.5 years old out of a 5 year contract, and yes they are all mine. i guess i will ask the original companies. thanks for your help.
Ask an agent, not the companies. Do any of your friends have an agent or an advisor that they can refer you to? The companies are not going to give you much product related advice (especially as it pertains to their competitors), but will provide you with their process. An independent agent can give you direction, recommendations, AND help with the process.
YourFamilyBank
Expert
- 46
Yes you can combine the two. There are fixed Index annuities out there with uncapped indexes which means you can get up to exactly what your index chosen earns.
If you are looking for income, a particular one offers a 4% guarantee roll up each year On the income dollars and it's not a give or take. Means that if the index gets 10, you get the 10 plus the 4. If the index doesn't gain any or less than 4 you get 4. Pretty sweet deal.
They also have a managed index option versus just straight index.
In your situation this would be solid option because the guarantee is more than you get now.
Do you have a surrender charge if you bail now on these 2?
- 10,324
You really seem to be glossing over things here...
Exactly what product is this? What you just described is a point-to-point with no spread, fee, or participation rate. So what is this magical Annuity product?
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This sounds like National Western Life. But they do not have managed index options.
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That is impossible to say with any accuracy whatsoever given the info he has given so far.
First, you have no idea what his current guarantee is.
Second, the "guarantee" you are speaking of is only accessible via lifetime withdrawals. And you have no idea if creating a lifetime income with these funds is a suitable recommendation or not.
But either way, the guarantee you speak of is totally different than the guarantee you are comparing it to.
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He posted that he is 2.5 years into a 5 year contract. So that would be yes. Maybe he has an ING 5 year with the ROP option... but he would be absolutely stupid to do a 1035 at this stage in the contract.
Sorry to pick your post apart... I know your new... but you are giving really incomplete and unfounded advice on this one.
Exactly what product is this? What you just described is a point-to-point with no spread, fee, or participation rate. So what is this magical Annuity product?
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This sounds like National Western Life. But they do not have managed index options.
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That is impossible to say with any accuracy whatsoever given the info he has given so far.
First, you have no idea what his current guarantee is.
Second, the "guarantee" you are speaking of is only accessible via lifetime withdrawals. And you have no idea if creating a lifetime income with these funds is a suitable recommendation or not.
But either way, the guarantee you speak of is totally different than the guarantee you are comparing it to.
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He posted that he is 2.5 years into a 5 year contract. So that would be yes. Maybe he has an ING 5 year with the ROP option... but he would be absolutely stupid to do a 1035 at this stage in the contract.
Sorry to pick your post apart... I know your new... but you are giving really incomplete and unfounded advice on this one.
YourFamilyBank
Expert
- 46
I was as you say glossing things over because I was attempting to speak to him so he or she, not N agent. So many clients get confused with point to point, participation rates, etc, just trying to let him know "options" out there.
I said this could be a solid option, not that this is what he should do. His guarantee was stated on 2 of them and that is what I was speaking to. The more they know what is out there for then the better.
And I'm not new... User name had to be changed. Never posted much but read around here for years keeping up with what's going out there.
Always enjoy your posts and insight btw.
- 10,324
I got you. I didnt notice him mention what the guarantee was.
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Thanks. Who were you before? Are you a byob or IB guy? (just guessing by your user name)
YourFamilyBank
Expert
- 46
After re reading you are right about one of the guarantees, it seems there is a third that is tied to an index and we don't know the guarantee there.
I was something crimsontide, don't remember rest that's why I couldn't recover.
Not really byob or IB directly, I am National Sales Director of Your Family Bank hence the name. Of course use many of the same principles and believe in the concept deeply.
