Phoenix PIA annuity

[lynxville]

Looking at an annuity, 100K, with a 45k bonus bump on income base, wait 2.1 years and receive $6300 per year for me or my wife, cannot go down in price, can pull the remainder of the money after 10 years, anything left before the 100k is used up, goes to children.

Does this sound like a good idea, stocks not doing good, cd's terrible, whats your thoughts?

 

[FinanceDude]

Its a fancy name for an equity indexed annuity. While it looks like they are giving you 45% return to wait three years, that's an income base you can't walk away from. It has a 10-year surrender charge. $6300 amounts to about a 4.5% withdrawal rate. It is very doubtful that your contract value would go up because of the high fees and it uses a bevy of "participation rates" that cap your return. All you would get is the 4.5% withdrawal, and unlikely to have that go up........

If it were me, I would wait until you need the income and buy a SPIA. When rates go back up in a couple years, you should be able to find an attractive one.....

 

[brewer12345]

And go look at the financial strength rating of that insurer...

 

[braumeister]

PIA annuity?
Yes, evaluating one of those things is definitely a P In the A.

Sounds like you might be reading the "features" section of the marketing material, rather than the (very) fine print. Make sure you completely understand all aspects of the instrument you're being sold before seriously considering a purchase.

 

[73ss454]

Yeah, and if you can actually figure out what the fine print says I'm sure you won't buy it.

 

[chinaco]

Is this the company; Phoenix Wealth Management?

https://www.phoenixwm.phl.com/public/about/financialstrength/ratings/index.jsp


What are your goals? Do you want guaranteed income for life or asset growth....

 

[lynxville]

Thanks for the unput

 

[REWahoo]

Thanks for the unput

You axed...

 

[pb4uski]

And go look at the financial strength rating of that insurer...

+1