What Will We Be Covering in this Annuity Review?In this review, we will be covering the following details on the Pacific Life Core Protect Advantage Variable annuity:
- Product type
- Current rates
- Realistic long term investment 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 have been considering the purchase of a variable annuity because you want to grow your savings tax-deferred, while at the same time have the ability to attain market-related returns, then the Pacific Life Core Protect Advantage variable annuity may be a wise choice. But depending on your current financial situation, even if you purchased this product several years ago, today your situation may have changed, rendering this annuity no longer needed or wanted for what you are hoping to accomplish. What you will likely notice about this annuity is that, just like any other financial or insurance product, there are areas where it may perform quite well, and then there are other areas where it doesn’t perform very well at all. In order to really know whether or not the Pacific Life Core Protect Advantage variable annuity is the right one for you, it may be necessary to read over a myriad of “small print” in the prospectus and/or other written materials. Unfortunately for most people, even though this is important, it can be about as fun as getting a root canal. This is where the Annuity Gator comes in!
Annuity and Retirement Planning Information that You Can TrustIf this is the first time you have visited our AnnuityGator.com website, then we would like to welcome you to our site. We represent a team of knowledgeable annuity pros who are focused on providing our visitors thorough – yet non-biased – annuity review. We have been at this for a number of years now, much longer than our competitors. So, we have become a highly trusted source of annuity information. If you have been in the process of seeking annuity info online, then it’s likely that you have at some point run across conflicting information regarding these financial vehicles. This, however, is not entirely surprising, because there are many, many annuities out there in the marketplace, and there are numerous opinions – both good and bad – about them. If you have recently attended an annuity seminar or workshop, you may have – in return for a complimentary lunch or dinner – already heard some of the details about this, or another, annuity. Attending that even may even be what has brought you here to our site in search of additional details. In your quest for annuity information, you may also have run across some of the other websites out there on the Internet that tout the benefits of their products. In fact, some of these sites make some pretty bold claims, such as:
- Highest annuity rates
- Lowest Fees
- Top rated annuity companies
- Get your quote now!
Pacific Life Core Protect Advantage Variable Annuity at a Glance
Opening Thoughts on the Pacific Life Core Protect Advantage Variable Annuity ProductPacific Life has more than 145 years of experience in helping its clients to grow and protect wealth. The company works with individuals, families, and businesses – and it provides a long list of financial and insurance products. As of year-end 2016, Pacific Life held roughly $143 billion in total assets, and for the year 2016, it paid out $2.3 billion in insurance and annuity benefits to its clients, policyholders, and beneficiaries. The company has received very high ratings from the insurer rating agencies, including a(n):
- A+ (Superior) from A.M. Best Company
- A+ (Strong) from Fitch Ratings
- A1 (Good) from Moody’s Investor Service
- AA- (Very Strong) from Standard & Poor’s
Before we get into the gritty details, here is some necessary legal information that we need to disclose…This is an independent annuity product review and it does not constitute any type of recommendation to purchase or sell an annuity. Pacific Life has not endorsed this review in any way, and I do not receive any compensation for providing this review. This information is meant to be an independent opinion so that readers may see my personal perspective when determining the potential advantages and/or drawbacks of this particular financial vehicle, and how it may or may not fit into their specific financial portfolio. Prior to purchasing any type of investment or investment product, it is important to pursue your own due diligence and to consult with a competent and properly licensed financial professional before moving forward. This way, you can more precisely ensure that the product and/or service fits in with your individual circumstances. All names, trademarks, and materials that were used in this annuity review are the property of their respective owners. Want to know more about what to look for when shopping for a variable annuity? Click here to immediately download our free report on variable annuities.
How Pacific Life Describes the Core Protect Advantage Variable AnnuityPacific Life describes their variable annuities such as the Core Protect Advantage as long-term contracts between you and the insurance company that can help you to grow, protect, and managing retirement savings in a tax-advantaged way. Just some of the benefits of these types of annuities can include the following:
- Grow retirement savings faster through the power of tax-deferral
- Manage your investment strategy by transferring among a diverse selection of investment options free of tax consequences
- Convert your assets to guaranteed, lifetime retirement income
- Leave a financial legacy through a guaranteed death benefit
How a Financial Advisor Might “Pitch” this AnnuityIf you were offered the Pacific Life Core Protect Advantage variable annuity by a commissioned insurance or investment advisor, then it is likely that they will be focusing on the positives of this annuity, while possibly not highlighting the aspects of this annuity that could be considered drawbacks. One such drawback is the risk that the investor takes when purchasing a variable annuity. Today, variable annuities are not nearly as popular as they were several years ago. Rather, index annuities – which offer the opportunity for index-linked return, along with the safety of principal – have become much more sought after. One reason for this is because they can guarantee safety, yet provide a higher return than a regular fixed annuity. With that in mind, it is probable that a financial professional will key in on the ability of a variable annuity to possibly provide a higher return, as well as diversity in investment options. Also, because people are living so much longer today, one primary fear that many retirees have is that of running out of money. The guaranteed lifetime income from an annuity can help to rid that fear. This particular annuity comes from a very strong and stable financial company – and one with nearly a century and a half of experience in the financial industry. So that is definitely a plus. In addition, if your risk tolerance tends to be at the higher end of the spectrum, going with variable products such as the Core Protect Advantage from Pacific Life can offer you the opportunity for a higher rate of return than the fixed, or even the fixed indexed annuity products that are now available. But, if one of your key reasons for purchasing an annuity is for the income benefit, it is highly recommended that you first take into consideration the projected income from this annuity, as there may be other products out there that can offer a higher level of guaranteed income – along with more protection from a downward moving market. Because there is no “perfect” product or investment, it is important to know clearly what your priorities are right from the beginning. This is especially the case before you move forward with signing an annuity contract because once you are in, it can be difficult – and costly – to get out. It can be difficult to know which annuity will be the best one for you and your specific circumstances. But it can be helpful to know some key tips when shopping for this type of product. Click here in order to obtain our free annuity shopper’s guide so that you can feel more confident in your decision going forward.
What About the Fees on the Core Protect Advantage Annuity?Overall, variable annuities tend to be some of the more costly investment vehicles that are available in the market today. For instance, these products typically carry annual maintenance fees, as well as fees for any of the additional riders that you opt to include (such as living benefits and/or the optional death benefit). If you want to take more than 10% of your contract value out of the annuity within the first several years, you will also incur a surrender charge. (For those who are under the age of 59 1/2 and take such withdrawals, you can also count on incurring an additional 10% “early withdrawal” penalty from the IRS). And, you mustn’t forget the fact that each of the individual investments – typically mutual funds – that are included in your variable annuity will also have their own annual management fees. (And yes, this is the case even if your funds lose money in a downward moving market). So you have to ask yourself this – is the tax-deferred nature of the growth in this product really worth all of the risks that you’ll be taking on, plus all of the fees?
The Annuity Gator’s End Take on the Pacific Life Core Protect Advantage Variable AnnuityWhere it works the best: Variable annuities such as the Pacific Life Core Protect Advantage variable annuity will typically work best for those who are looking for the following benefits:
- The opportunity for higher, market- related growth (as versus that of a fixed or fixed indexed annuity)
- Tax-deferred gains (which can be particularly beneficial for people who have already “maxed out” their IRA and/or 401(k) plan and still want to invest additional funds
- Guaranteed lifetime income in retirement
- Have a low tolerance for risk and are seeking principal protection
- Do not plan to use the lifetime income feature