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Background from my earlier post- my in-laws have always been very private about their finances. They are both 74, MIL has a degenerative disease and is going to need some type of care. This finally prompted my FIL to begin to disclose their financial situation. Initial information was that they had an annuity (sold to them by an “advisor” that they currently trust implicitly)...which terrified me...but we didn’t know anything more. This weekend, he handed over a file where he keeps his statements from 2020 so far.
Here’s what it contained:
1. 25K in Transamerica Funds (Fund: Transamerica Asset Allc-Moderate GTH-A (732))
2. MIL has a Prudential Premier Retirement B Series Annuity (Type: IRA)that my FIL states was opened with 100K in it in 2018. It now has 85K. I believe their RMD’s have been coming from this account, it’s an IRA. $76,000 of it is in a variable investment, the balance is fixed. I’m not sure what this means, but under the variable, it states:
AST T. Rowe Price Asset Allocation: 4,788 units @ 13.74 unit price, values = $65K
AST Investment Grade Bond: 847 units @ 12.28 unit price = 10K
Under fixed it states:
Secure Value account 6/25/20 1.05% = $8,920
Annual Income Amount: $5,573.41
3. FIL has a Prudential Premier Retirement L Series (Type: IRA) that has a beginning account value of $55K. Present value: $46K. It’s all in a variable investment, it states “Special Equity, AST Quantitative Modeling Portfolio”: 3,445 units @ 13.38 unit price = $46K portfolio value.
I do not see an annual income amount listed.
We have an appointment with the advisor this week...it will be the first time ever that we meet with him. We know the money to fund these annuities were taken from their 401K. This is the extent of all their retirement money.
What do we do now? We obviously need a copy of the annuity contract, which we do not yet have. But, is it ever a good idea to remove the money from the annuity once it’s in there?
I know nothing about annuities, but it seems having a variable annuity at their age is even worse than a fixed? Any thoughts or advice before the meeting with the advisor would be appreciated. Thank you.
Here’s what it contained:
1. 25K in Transamerica Funds (Fund: Transamerica Asset Allc-Moderate GTH-A (732))
2. MIL has a Prudential Premier Retirement B Series Annuity (Type: IRA)that my FIL states was opened with 100K in it in 2018. It now has 85K. I believe their RMD’s have been coming from this account, it’s an IRA. $76,000 of it is in a variable investment, the balance is fixed. I’m not sure what this means, but under the variable, it states:
AST T. Rowe Price Asset Allocation: 4,788 units @ 13.74 unit price, values = $65K
AST Investment Grade Bond: 847 units @ 12.28 unit price = 10K
Under fixed it states:
Secure Value account 6/25/20 1.05% = $8,920
Annual Income Amount: $5,573.41
3. FIL has a Prudential Premier Retirement L Series (Type: IRA) that has a beginning account value of $55K. Present value: $46K. It’s all in a variable investment, it states “Special Equity, AST Quantitative Modeling Portfolio”: 3,445 units @ 13.38 unit price = $46K portfolio value.
I do not see an annual income amount listed.
We have an appointment with the advisor this week...it will be the first time ever that we meet with him. We know the money to fund these annuities were taken from their 401K. This is the extent of all their retirement money.
What do we do now? We obviously need a copy of the annuity contract, which we do not yet have. But, is it ever a good idea to remove the money from the annuity once it’s in there?
I know nothing about annuities, but it seems having a variable annuity at their age is even worse than a fixed? Any thoughts or advice before the meeting with the advisor would be appreciated. Thank you.
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