What is covered in this annuity review?In this annuity review, we’ll be covering the following information on the Prudential C Series Variable annuity:
- Product Type
- How the Annuity Is Used
- How the Annuity 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.You may find it to be clear as you go over this annuity review that the Prudential C Series variable annuity – as many other annuities – will be able to perform well in certain situations. But, there will be other scenarios where this annuity won’t be the clear cut option. This will be especially the case, depending on what your goals are for the annuity.
Annuity and Retirement Education That Can Be TrustedIt’s possible that you may have found this website and that you aren’t certain what we do – or even why we might be reviewing this annuity. The good news is, however, that if you are seeking information about annuities, then you have landed in the right location. In fact, if you have been doing any type of research on annuities on the Internet, then it is likely that you have come across various sites that have made claims regarding annuities for the sole purpose of collecting your contact details. For instance, these websites may have suggested that the annuity products they recommend provide features such as:
- High Payouts
- Low Fees
- 7-8% Returns
- No Market Risk
Prudential C Series Variable Annuity at a Glance
|Product Name||Prudential C Series Variable Annuity|
|Type of Product||Variable Annuity|
|Standard & Poor's Rating||AA- (Very Strong)|
|Phone Number||(855) 366-5312|
Opening Thoughts on the Prudential C Series Variable AnnuityIn general, a variable annuity is supposed to offer two key benefits to its holder. These include the growth of principal and the production of retirement income. But, the truth is that a variable annuity is not really all that great at producing retirement income. One reason for this is because of the risk that a variable annuity can present to the investor, as well as to the insurance company that offers it. Because the value that is inside of a variable annuity tends to move up and down so much on a regular basis, it is not uncommon for the offering insurer to guarantee a lesser amount of income from a variable annuity. This can often times be the scenario – even though variable annuities offer the ability to earn more growth than will a “safer” alternative such as a fixed annuity product. So, for each dollar that you put into a variable annuity, it very well may promise you a lower amount of income than will a fixed annuity – for the same amount of your deposit. For this reason, if your main objective for purchasing an annuity is future retirement income, then a variable annuity is not likely to be the best alternative for you. In regards to purchasing a variable annuity for growing your principal – here, these vehicles can offer you an opportunity for high return. For instance, with the Prudential C Series variable annuity, you are able to create a customized portfolio with various combinations of the 61 different investment options that are offered through this annuity. There are a variety of different investment alternatives, covering various asset classes. Yet, because the C Series annuity is variable, you will still run the risk of downside market performance. In addition, it can also expose investors to numerous fees, many of which investors may or may not even be aware of. For instance, investors in variable annuities will often times not only be exposed to the fees that are associated with the annuity itself such as a front-end load, administrative charges, and other rider fees, but also to those that are included in the mutual fund investments that are inside of the variable annuity. Given all of the fees to contend with, and then add to that the regular bouncing around of the market, it can become quite challenging to make a high return when funds are invested in a variable annuity.
Prior to moving on to the annuity details, there is some legal information that needs to be disclosed here…This is an independent annuity review. Therefore, there will be no recommendation here for buying or selling an annuity product. Prudential has not endorsed this annuity review. The information that is being presented here is for the purpose of providing an opinion so that readers can view our personal perspective when making a decision regarding whether or not the annuity being discussed will fit in with their specific portfolio. Before you purchase any type of financial product or service, it is always a good idea to pursue your own due diligence and to also consult with a licensed and competent financial advisor. Doing so can help you to better ensure whether or not the product or service being considered may be a fit for your financial goals. All of the names, trademarks, and materials used in this annuity review are the property of their respective owners.
How Prudential Describes the Series C Variable AnnuityThe Series C variable annuity is one of Prudential’s Premier Retirement annuities, and it is described by Prudential as being a potentially good option for the “unpredictable investor who needs asset liquidity for withdrawals.” This annuity offers approximately 60 different professionally managed investment options. These cover a wide range of different classes and styles, so investors can create a portfolio mix to suit their style, as well as their long-term goals. Just like other annuities, the Prudential Series C variable annuity allows for tax-deferred growth inside of the account. That means that there is no tax due on the gain until the time of withdrawal, which can allow for compounding of the growth over time. In addition, this annuity also offers other features that may be beneficial to an investor such as a guaranteed death benefit, which can help in leaving a legacy. The annuity’s living benefits can protect retirement income if the investor should be diagnosed with a terminal illness and/or have to reside in a skilled nursing facility for a certain length of time.
How Financial Advisors Might “Pitch” this AnnuityThe C Series annuity is one of several in the Prudential “Premier Retirement” annuity series. Of these annuities, this particular annuity is one that allows for more liquidity than many other similar annuities – and because of that, it is likely that a financial salesperson would key in on this as one of its primary selling features. Because this annuity has no surrender charges, though, it has higher annual insurance fees – so, if you really sit down and “do the math,” if you hold the annuity for the long term – as most annuity holders should ideally do – then your total payout in fees could be quite substantial over time. This annuity also offers 60 different investment options to choose from so that investors can essentially build and “customize” a portfolio to meet their particular needs. These options encompass many different asset classes. This, too, is likely to be discussed by a financial salesperson when pitching the C Series annuity. If considering this particular annuity, though, it is important to keep in mind that, even with all of the different investment options, because it is a variable annuity, there will still be exposure to market risk. So, be sure to consider just how much risk tolerance you are comfortable with prior to moving forward.
What About the Fees?When it comes to variable annuities, these particular products have been known to be on the more expensive side of the financial product spectrum. One of the reasons for this is because variable annuities have fees in and of themselves, as well as fees that are charged by the investments that are within the annuity. Taking the Prudential C Series annuity, even without a back-end surrender charge, there are still a number of fees to be aware of, including:
- Annual Maintenance Fee of $50 or 2%, whichever is less;
- Annual Mortality & Expense Risk Charge of 1.80% during the first 9 annuity years, and 1.30% after the 9th annuity year;
- Annual Administration Charge of 0.15%;
- Additional Optional Living Benefit Charges;
- Total Annual Portfolio Operating Expenses of Between 0.59 – 2.11%.