What’s Covered In This ReviewIn this review, we’ll cover the following information on the Allianz Master Dex 10 Annuity:
- Product Type
- Current Rates
- Realistic long-term return expectations
- How it is used
- How it is most poorly used
Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in. We make the complex, simple.
If you are thinking about the purchase of a financial vehicle that can provide you with index-linked growth and protection of principal, along with a lifetime income in retirement, then a fixed indexed annuity (FIA) could be a viable option for you. But, before you rush into purchasing any annuity, it is highly recommended that you have a good understanding of how the product works – and how it may or may not fit into your overall financial picture. Over the past ten years or so, annuities have become much more popular, as they can provide a guaranteed income stream in retirement. Because of this increased popularity, the number of insurance and financial professionals who are offering them has also increased exponentially. However, this may not necessarily be a good thing. Why? One reason is that, even though most financial advisors work hard to do what is right for their customers, they may not always be able to provide you with the in-depth information that is needed for making a well-informed annuity purchase. But knowing both the benefits and the drawbacks can be key in determining whether or not an annuity is right for you. Also, due in large part to the growing popularity of annuity products, the list of different benefits that can be offered to them has expanded, which can actually make these offerings much more difficult to understand – even for well-educated consumers. With that in mind, it is important that you take the additional steps that are necessary in order to fully understand what it is that you’re buying. This is especially true because the purchase of an annuity could comprise a large chunk of your retirement savings.
Annuity and Retirement Income Planning Information That You Can TrustIf this is your very first visit here to our website, we would personally like to welcome you to AnnuityGator.com. We are a team of experienced financial professionals who are dedicated to offering in-depth, and unbiased, annuity reviews. We’ve been doing this for many years – much longer than our competitors – so we have become a trusted source of annuity information. If you have been shopping for an annuity and you have been seeking more details about them online, then it is likely that you have run across some conflicting details about these financial vehicles. This, however, isn’t all that surprising because there are many annuities out there, as well as a long list of opinions about them. It is possible that you may also have attended a seminar where you were offered a free lunch or dinner by the presenter in return for him or her discussing a particular annuity. In fact, because of attending that event, you may even have inadvertently landed here on our website in search of more in-depth details. While there are many good websites online that are devoted to marketing their annuity offerings, some of these sites can have a way of luring visitors in so that you will provide them with your contact information. In fact, some of these annuity-related sites may even tout some pretty steep claims about their annuities like:
- Lowest fees
- Highest income payouts
- Top Rated Companies
- Quick Quotes
- Guaranteed Lifetime Income
Allianz Master Dex 10 Annuity
|Allianz Master Dex 10 Annuity
|Type of Product
|Fixed Indexed Annuity
|Standard & Poor's Rating
|AA (Very Strong)
Opening Thoughts About the Allianz Master Dex 10 Fixed Indexed AnnuityFor nearly 125 years, Allianz has been helping Americans prepare for their financial future. The company is a leading provider of retirement solutions – including annuities – which can provide an income stream for life. The company is a subsidiary of Allianz SE, a global financial services group that is based in Munich, Germany. The consistently high ratings earned by Allianz reflects the company’s financial stability and strong balance sheet. These include a(n):
- A+ (Superior) from A.M. Best
- A1 from Moody’s Investor Services
- AA (Very strong) from Standard & Poor’s
Before getting into the nitty-gritty details, here are some necessary legal disclosures…..This is an independent annuity product review. It is not a recommendation to purchase or to sell an annuity. Allianz Life Insurance Company has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This annuity review is meant solely to be an independent review at the request of our readers so that they may see our perspective when breaking down the positives and the negatives of this particular annuity. Prior to committing to the purchase of any type of insurance and/or investment vehicle, it is critical that you do your own due diligence, and that you also talk with a properly licensed professional if you have any questions that relate to your specific situation. All of the names, materials, and marks that have been used in compiling this annuity review are the property of their respective owners. For additional information on how to compare fixed annuities so that you can decide which may be the best one for you, click here in order to obtain our free annuity report.
How Allianz Life Insurance Company Describes the Master Dex 10 AnnuityIn the Master Dex 10 annuity brochure, this product is described as a powerful tool to help you with reaching your financial goals. It can do so through the following benefits:
- A 10 percent bonus on the premium that is received for five years
- Safety of your principal – regardless of what occurs in the market
- Gains that are locked in each year – which in turn, can eliminate market index risk due to losses in the underlying index
How a Financial Advisor Might “Pitch” this AnnuityThe Allianz Master Dex 10 is a fixed indexed annuity product that can help you with building up your retirement savings through the potential market-linked return, as well as protection of principal. As with other types of annuities, this product can also provide you with the tax-deferred growth of the funds in your account, as well as an ongoing lifetime income in retirement – so you can be assured that you’ll have income cash flow for the remainder of your life. This product is a flexible premium, point-to-point equity index annuity that offers a 10% premium bonus, retirement income features, and a choice of fixed interest and/or index earnings tied to changes in the S&P 500 and Nasdaq 100 indices. In fact, just by looking at the points above about the features of this annuity, you may have started to think that it is the ideal product for you. However, the truth is that if it was a commissioned sales person who talked to you about this product, then they are oftentimes much more apt to focus on the positives, but leaving out the annuity’s possible drawbacks. These, however, should also be considered if you are deciding whether or not to keep a product that required you to deposit a large percentage of your retirement savings. Therefore, if you have made a long-term commitment to the Allianz Master Dex 10 annuity, we will touch here on some of this annuity’s “fine print,” so that you know what to expect going forward. In this case, right off the bat, the sales brochure for this product can be quite telling. For example, with regard to the 10 percent premium bonus that can be obtained in the first five years, the “fine print” will provide a list of “what ifs”, such as, “if the policy is annuitized prior to the sixth year, if annuity payments are taken for less than 10 years, or if the policy is surrendered for cash at any time, then the bonus will be forfeited, the index adjustments will be lost, a 12.5% charge will be applied and a rate of interest of 1.5% will be credited from the inception of the policy”. This alone paints a vastly different picture from the rosy bullet points above. Also, as with other fixed indexed annuities, even though you have the opportunity to earn a nice, index-linked return, this return will actually be capped at a certain amount. This means that if the underlying index has a stellar performance in a given year, you will only be able to receive a portion of it – up to the annuity’s stated cap rate. With that information in mind, if you are not completely certain about whether or not you should hang on to this annuity – and you would also like to ask questions and / or compare the Master Dex 10 with other annuities – please feel free to reach out to us right here via our secure contact form. We know that annuities can be somewhat confusing – and particularly those that have a number of added “bells and whistles” like the Master Dex 10 Annuity. This can be the case, even for well-educated consumers – and even for some seasoned financial advisors. However, when you are attempting to decide what you want to do with a substantial sum of your long-term retirement savings, then it is essential that you know just exactly what it is that you’re getting into. If you would like to have any additional information, along with more assurance that you purchased the right annuity, then click here so that you have instant access to our free report on what you need to know prior to purchasing an annuity.
Knowing how your insurance or financial advisor was paid on the sale of this annuity can also help you determine just exactly how much he or she put in their pocket afterward.
In the case of the Allianz Masterdex 10 annuity commission schedule, the numbers can be all over the board. But advisor commissions here can range in Year 1 anywhere between 4.5% and 9% for purchasers who are age 75 and under, and from 2.5% to 7% if you’re between the ages of 76 and 85 when you initially purchase this annuity.
Then there are the “trailing” commissions in year 2 and beyond. These will typically hover around the 1% mark. Although depending on which product option you choose, at your age at the time of purchase, there could be trailing commissions of between 0.50% and 3.50%.
What About the Fees Associated with the Allianz Master Dex 10 Annuity?In addition to having a good understanding of how your money may perform in an annuity, it is essential that you also know where your money may be “leaking out” in terms of various charges and fees. In fact, in many cases, the fees that are assessed to you in an annuity can really add up. This is because fees on a fixed indexed annuity product may be charged to you both during the annuity’s accumulation phase, as well as after you have converted your annuity into an income stream. Because of this, annuity fees can essentially play a big part in how much money you are able to build up, and the amount of income that you will ultimately receive in retirement. While this particular annuity does not charge an upfront sales commission, you could be losing money in other ways. For example, if you wish to withdraw some or all of your funds from the annuity during the first several years that you have it, you are also going to be charged a surrender fee. The surrender charges on the Allianz Master Dex 10 Annuity run for five full contract years.
The Annuity Gator’s End Take on the Allianz Master Dex 10 Fixed Indexed AnnuityWhere it works best: This annuity may work the best if you are looking for:
- Safety of your principal – regardless of what occurs in the market
- The opportunity for index-linked growth
- Guaranteed lifetime income in retirement
- Want penalty-free access to most or all of your money within the first five years of purchasing the annuity
- Do not intend to use the lifetime income feature of the annuity