variable annuity Archives - Runnymede Capital Management

An impartial review of the Allianz Index Advantage Income Variable Annuity

The annuity business has grown in popularity as investors, especially those nearing retirement, look for options that protect them from stock market volatility and provide a decent income stream in retirement. With over $200 billion in annual sales, the annuity industry is big business with lots of salespeople trying to persuade you to make a purchase.

Today, I will dig deep into the Allianz Index Advantage Income Annuity, one of the insurance industry's newest innovations. Registered index-linked annuities, RILAs also known as buffer annuities, appeal to investors who are risk averse but also need growth because they offer some downside protection in exchange for a cap on a stock index's upside performance. If it sounds attractive, you're not alone. Sales of RILAs rose 38% to $4.9 billion in the first quarter of 2020.

An impartial review of the Allianz Index Advantage Variable Annuity – updated August 2021

Editor's Note: This post was originally published in September 2020 and has been updated for freshness, accuracy, and comprehensiveness.

If you are looking for our review of the Allianz Index Advantage Income Variable Annuity, please click here. The Income version has an income rider attached.

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Today, I will dig deep into the Allianz Index Advantage Annuity, one of the insurance industry's newest innovations. Registered index-linked annuities, RILAs also known as buffer annuities, appeal to investors who are risk averse but also need growth because they offer some downside protection in exchange for a cap on a stock index's upside performance. If it sounds attractive, you're not alone. Sales of RILAs rose 38% to $4.9 billion in the first quarter of 2020.

Can index annuities provide stock market returns?

For several years, I have written in-depth annuity reviews because there is little information about these complex products. Many retirees are being enticed by free dinner seminars and promises of huge returns with no risk. I give an A+ to insurance companies for producing a product that they claim to be “no fee” (are you kidding me? Fees are simply hidden so you can't see them), no downside risk (yes true) and still has the potential for stock market returns (too good to be true). Let's take a look at that last piece and the topic of this blog post: can index annuities provide stock market returns?

An impartial review of the Pacific Life Variable Annuity

Warning: this is an in-depth review of the Pacific Choice Variable Annuity. Many annuity critics point to complexity as being a major negative for this asset class and Pacific Life doesn't dispel this criticism. The prospectus totals a voluminous 132 pages. So buckle up and let's dig in.

The annuity business has grown in popularity as investors, especially those nearing retirement, look for options to protect themselves from stock market volatility and give them a decent income stream in retirement. With over $200 billion in annual sales, the annuity industry is big business with lots of salesmen trying to persuade you to make a purchase.

10 Things The SEC Wants You to Know About Variable Annuities

The US Securities and Exchange Commission (“SEC”) provides several resources to help educate investors about the complex product of variable annuities. In fact, the SEC's Office of Investor Education and Advocacy recently published an Investor Bulletin entitled Variable Annuities—An Introduction. If you are thinking about purchasing an annuity, I encourage you to read the bulletin in its entirety as well as thoroughly read Variable Annuities: What You Should Know.

An impartial review of the Transamerica Variable Annuity X-Shares with Retirement Income Max Rider

Warning: this is an in-depth review of the Transamerica Variable Annuities series. Many annuity critics point to complexity as being a major negative for this asset class and Transamerica doesn’t dispel this criticism. The prospectus totals a massive 480 pages which is …