Thomas3857
Dryer sheet aficionado
Hi all. Enjoy reading the posts and am learning every day though I still consider myself to be an unsophisticated investor.
I have approx. $325K sitting in cash earning .50 percent and, like most, looking for alternatives. I'm 55 married with two adult kids and the money is already in a tax deferred account. Total net worth around $2.5m. Financial advisor at mid-size regional bank said look at Pacific Life Choice deferred variable annuity. I read the 30 page prospectus and gleaned the following:
Fees: 0.25 expense and mortality risk; 0.95 investment protection rider; 1.15 admin fee so approx. 2.35% fees overall.
5-year Term: After 5-years, the max loss is 10% and the “rider” drops off. This will also lower the fee to 1.20%. I then have the option to add the rider back on after 5-years.
W/D fees range from 7% in year one to 0% at end of year 5.
The death benefit is a standard benefit that my beneficiary would get back no less than I put in (minus withdrawals), should I pass away when the account is down.
I already have a sufficient term life policy.
So am I basically paying 2.35% to insure the most I will lose is 10% of my investment over 5 years with no cap on the gains?
He seems eager to sell me this so my spider senses are tingling. What am I missing? Thanks!
I have approx. $325K sitting in cash earning .50 percent and, like most, looking for alternatives. I'm 55 married with two adult kids and the money is already in a tax deferred account. Total net worth around $2.5m. Financial advisor at mid-size regional bank said look at Pacific Life Choice deferred variable annuity. I read the 30 page prospectus and gleaned the following:
Fees: 0.25 expense and mortality risk; 0.95 investment protection rider; 1.15 admin fee so approx. 2.35% fees overall.
5-year Term: After 5-years, the max loss is 10% and the “rider” drops off. This will also lower the fee to 1.20%. I then have the option to add the rider back on after 5-years.
W/D fees range from 7% in year one to 0% at end of year 5.
The death benefit is a standard benefit that my beneficiary would get back no less than I put in (minus withdrawals), should I pass away when the account is down.
I already have a sufficient term life policy.
So am I basically paying 2.35% to insure the most I will lose is 10% of my investment over 5 years with no cap on the gains?
He seems eager to sell me this so my spider senses are tingling. What am I missing? Thanks!