Hi folks I trusted a financial planner now I will just have to make the best of it for nine more years.Why do you have to stay with this planner for nine more years?
... I was referring to the nine years left on the contract I can find a new financial planer if necessary.. I can take a 10% penalty free withdrawal each year on each contract if I wanted to.
The planner has been doing this for 18 years and I thought all those awards hanging on the wall he would be helping me make money. PBK I have no idea what the expenses are, when we signed up the financial planner told us that his fees would not come out of our money but out of allianz.Start with http://insuranceportals.blogspot.com/2013/12/industry-first-barclays-us-dynamic.html. Regarding your planner's fees, note "Don't forget, as an Allianz Preferred producer, you can earn a bonus commission. Your bonus commission rates are based on the sale of ALL Allianz fixed annuity products in a calendar year."
Can anyone tell me what in Barclays US dynamic balance how much of it is bonds.See this link: http://www.biltd.com/CarrierMaterial/AllianzPreferred/ASI-381.pdf. The short answer to your question is "it changes on a daily basis."
Actual contract results would depend on crediting method chosen, and caps and spreads in place during that time period.The actual formula used by Allianz to calculate the annual interest you will receive is very simple. It may take a little digging on your part to find it - or you could sit down with the planner and ask him to show it to you.
A | Index at year end | 1500 |
B | Index 1 year ago | 1300 |
C | Asset Fee Rate | 0.002 |
D | Participation rate | 0.4 |
E | Spread | 0.02 |
Actual Index increase | =(C1/C2-1) | |
Interest rate you receive, ((A/B -1) - E) * D - C | =((C1-C2)/C2-C5)*C4-C3 |
I have no idea what the expenses are, when we signed up the financial planner told us that his fees would not come out of our money but out of allianz.
Hi Wildcat,
Very curious why you think you did a bad thing?
I read how you compared the annuity to an index fund but they are not the same at all. Apples / oranges. If you wanted an index fund and the potential downside that comes with that then the annuity was the wrong investment. If you wanted a low risk investment with no risk of losing your principle and the benefit of a future income stream that you cannot out live then you picked the right investment.
Very curious on this?
Why do you think you did a bad thing? The idea of putting money in a fixed index annuity is not to match gains from Vanguard index fund, but for safety, so that when 2008 happens again, when everything went down, even Warren Buffet lost money, you in your retirement years don't have to worry that you are losing money and still have to withdraw money for RMD. I remember when the tech bubble burst - watching my asset vanishing in 2001, 2002, going into 2003 - I was freaking out. Thank goodness I was still working then. So it's for your peace of mind with a decent death benefit for your beneficiaries. That's not a bad thing.
I just have 2 questions: why did you buy 4 separate fixed index annuities Allianz 365i, why buy 4 of the same thing? Did you buy these in the same year?
RTW yes the contract is with Allianz not the planner, after a couple of people point out that I should change planners it becomes more obvious. The planner has been doing this for 18 years and I thought all those awards hanging on the wall he would be helping me make money.