magsbag, let me clear up some confusion from previous posts:
1) A and C share VAs do not have the long CDSC (contingent deferred sales charge) schedule, surrender period, it is the B share. Bonus products which give you an upfront bonus will have longer surrender periods.
2) The guaranteed growth is great, but it is to the benefit base, not to your account value. They are two different things. DO NOT confuse the two, and understand the difference before proceeding any further. If you withdraw early, you’re getting the account value minus the surrender charge, not the benefit base.
3) I don’t know what your age is, but there is a cap on that guaranteed growth. Take that into consideration and your investment time horizon.
4) Your advisor may also be a CFP. Having the designation is great, but it can also mean squat IMO. There are a lot of regular Joe-6-Pack like Patrick from patrick.net who called the housing bust years ago, and research analysts with CFAs blind to the bubble. Henry Paulson had an awesome title but what did he do for you and your children?
5) Expenses are high, but remember that you have many subaccount options across many mutual fund families. However, also remember that with this rider and guarantee in place, the insurance company to hedge themselves will restrict your options as to not be too aggressive.
6) If you choose to annuitize, becareful. If you choose the lifetime income option, and you can hit by a car the next day and die, your money now belongs to the insurance company, your beneficiaries get squat.
7) Conversely, if you haven’t annuitized, you have a death benefit that’s probably the greater of your account value or the principal invested going to your beneficiaries. Say the market tanks again and you croak, your beneficiaries get your principal, and haven’t lost anything. Show me a mutual fund or stock that will guarantee that.
There are many ups and downs with annuities. It is neither a miracle product or the bane that some posters make them out to be. Like with everything else, CDs, mutual funds, stocks, bonds, how suitable it is depends on your unique situation which I’m unqualified to advise you on. I can only tell you not to make a quick decision and also look at other insurance carriers such as John Hancock, Lincoln, Jackson National, Pacific Life, etc. They may also have VAs that are more suitable to you and may or may not have better features and guarantees. If your advisor isn’t familiar with these companies, get another opinion. You don’t want a saleman only knowing one product. An independent advisor should be able to give you many options, and not hawk one product. If he/she does, beware they may be in one company’s pocket and have too good of a relationship with the local wholeseller.
Do not take what I’ve just wrote as investment advice. 🙂 Talk to your professional, or many professionals and not get pressured to rushing things. Good luck.
