What to look for in Variable Annuity

  1. 50/50 Test: We suggest that you look for a Sponsoring Insurance Company which is at least 50 years old with over 50 billion in total assets and highly rated.
  2. Portfolio Options: The sponsoring plan must have a minimum of 15 or more portfolios and a minimum of 10 separate fund families available.
  3. Low Expense Ratio: VA fees can get abnormally high if you don't look closely. We suggest that you don't pay more than 1% for the annual mortality and expense risks. And by no means should you ever pay an upfront load or extra fees for ongoing advice from your annuity broker.
  4. Unlimited, Free Telephone Transfers: This is a key feature. Some companies limit the number of times you can reallocate your accounts. AVOID these companies. Secondly, make sure you can make these reallocations by phone or Internet access.
  5. Free Asset Rebalancing: Asset Rebalancing assures that you'll maintain an asset mix that's compatible with your stated investment objectives and risk tolerances. FAR systematically reviews your contract and re-directs your assets automatically to fit your mix. FAR will automatically rebalance on a quarterly, semi-annually or annual basis. Lastly, there should be NO charge for this service.
  6. Automatic Payroll or Bank Draft Deduction Services: This is often times a convenient method for investors to make ongoing contributions without manually writing out a check each time a new deposit is to be made. Again, there should be no charge for this option.
  7. Free Annual Withdrawal Allowances: A 10-15% free annual withdrawal allowance should be sufficient for periodic income needs.
  8. Low Surrender Period: Your VA program should not have a surrender period more than 10 years, preferable 5-7 years maximum.
  9. Death Benefit Guarantees and Long Term Care (LTC) Waivers: An often over-looked, yet important all-around feature in VA investing is the guaranteed death benefits (optional or inclusive) which protects the investor's heirs during "down markets." There are several variations of this feature, so be sure to ask your Fielder Financial Annuity Specialist. Secondly, some VA plans offer LTC or terminal illness riders, which allow the contract owner to withdrawal the full amount of their policy with incurring surrender charges. You may have to pay an extra .5-.10% for this feature. Of course, these features are based on the claims-paying ability of the issuer.
  10. Independent, Unbiased Analysis: Because this is an important decision in your financial planning process, we believe investors can be better served working with an Independent Annuity Specialist a distribution company that has no ties or obligation to sell a particular company or product such as a firm like ours.

We match the customer to the annuity -- not the annuity to the customer!

At Fielder Financial, we have specialized in providing our nationwide clientele with independent advice for 30 years. Our motto is "we match the customer to the annuity -- not the annuity to the customer."

Action to Take

If you would like to learn more about Tax Deferred Variable Annuity Investing, please click HERE to request further information.



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Copyright 1998 Fielder Financial Management, LTD.
All Rights Reserved.

Securities offered through Fortune Financial Services, Inc. member FINRA, SIPC.  Fielder Financial Management, Ltd. not affiliated with Fortune Financial Services, Inc.  Mark Fielder, Financial Professional, CA. Insurance Lic. # 0690576.

Disclosure: Variable Annuities are long-term investments designed for retirement purposes and are subject to market fluctuations, investment risks and possible loss of principal. For more complete information about variable annuities, including charges and expenses, obtain a prospectus by calling 1-800-480-7526. Read it carefully before you invest or send money. Withdrawals may be subject to income tax and a 10% IRS imposed penalty may apply on withdrawals made prior to age 59-1/2. Consult your tax advisor.