What Will We Cover in this Annuity Review?
In this annuity review, we will be going over the following information about the Prudential Premier Advisor Variable Annuity:
- Product type
- Current rates
- Realistic long-term 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 recently been considering the purchase of an annuity because you are seeking tax-advantaged growth of savings and the opportunity for market-linked growth, as well as the guarantee of a future income in retirement, then the Prudential Premier Advisor Variable Annuity could be a potential option.
But, before you go out and make a long-term financial commitment on this, or for that matter any, annuity, you really should have an in-depth understanding of how exactly the product works so that you’ll know what you can expect from it.
Annuities can be highly complex products, and the more “bells and whistles” they offer, the more confusing they tend to be. Because of that, many consumers aren’t really sure what they are purchasing – only to find out after they’ve purchased that the product really isn’t all that it was cracked up to be.
Unfortunately, at that point, it is too late to get out of the annuity without having to pay a substantial withdrawal fee. This is definitely not the way to grow and/or protect your hard-earned savings.
Annuity and Retirement Income Planning Information You Can Actually Trust
If this is your very first visit here to our website, then please allow us to welcome you here to AnnuityGator.com. We encompass a team of experienced and knowledgeable financial professionals who focus on providing informative and unbiased annuity reviews.
Although you may have noticed other similar websites on your quest for annuity information on the Internet, we’ve actually been offering annuity product reviews for many years – far longer than most of the other copycat sites. (Although, it has been said that imitation is the highest form of flattery).
It is possible that your present insurance or financial advisor has offered you the Prudential Premier Advisor Variable Annuity (or some other similar financial product that can help you to save for retirement, as well as to attain an ongoing income in the future). You may also have recently attended an annuity seminar where, in return for a free lunch or dinner, you listened to a presentation about this annuity.
Yet, even though you may feel like the presenter left you “well informed,” it is still extremely important that you know more about the entire picture – which includes the good, the bad and the ugly – before you commit what will likely be a large chunk of your retirement savings.
In researching annuities online, you may have come across other annuity websites – many of which tout some pretty bold claims about the annuities they offer, such as:
- Highest income payouts
- Low Fees
- Top-rated annuity carriers
But unfortunately, rather than present you with all of the pertinent details about the annuities that they’re marketing, these websites would rather just highlight the good features, in order to get you to provide your contact information (and in turn, bombard you with endless emails).
Yet, as appealing as some of these annuity-related claims may be, you absolutely, positively need to know both sides of the story when it comes to annuities. This means understanding that, while the Prudential Premier Advisor Variable Annuity definitely has some positive features, there are also some areas where this annuity will have some big disadvantages.
This is where we come in!
Our annuity reviews offer you a wide array of details so that you can measure the pros and the cons, and from there you can make a determination as to whether or not this is the best annuity product for you.
So, if you are ready to get started, let’s dive in!
Prudential Premier Advisor Variable Annuity at a Glance
|Product Name||Premier Advisor|
|Type of Product||Variable Annuity|
|Phone Number||(888) 778-2888|
Opening Thoughts on the Prudential Premier Advisor Variable Annuity
Prudential has been a leader in the insurance industry for more than 100 years. Prudential Financial, Inc. companies include The Prudential Insurance Company of America, which is one of the largest life insurance companies in the United States.
The company is considered to be strong and stable from a financial standpoint, with more than $1.33 trillion in assets under management, and roughly $3.7 trillion of gross life insurance in force worldwide.
Through its subsidiaries, Prudential serves both individual and institutional customers in more than 40 countries. The company is ranked 1st in the “Insurance: Life and Health” category of Fortune magazine’s 2017 list of the World’s Most Admired Companies.
Other rankings for Prudential include:
- 2nd largest life insurer in the United States (based on total admitted assets)
- 3rd largest individual life insurance business in the United States (in terms of statutory net written premiums)
- 9th largest asset manager worldwide
- 4th largest seller of individual life insurance in the U.S. (based on recurring premiums)
Typically, variable annuities are designed to provide two primary benefits to their holders – the growth of principal in the account, and the production of retirement income. However, the reality is that variable annuities are not really all that good at producing retirement income.
One of the reasons for this is because of the risk that these types of annuities can present to their investors – as well as to the underlying insurance carriers that offer them. Also, because the value that is inside a variable annuity fluctuates so much, it is typical for an offering insurer to guarantee a lower amount of retirement income from a variable annuity – sometimes even less than from vehicles that are considered “safer” such as fixed annuities.
So, for every dollar that is invested into a variable annuity, it could very well offer you a lower amount of income than would a fixed annuity, for the very same amount of money deposited. Therefore, for this reason, if your primary reason for purchasing an annuity is future retirement income, then a variable annuity may not be the best option in this case.
If you are considering a variable annuity for growing principal, these financial vehicles can provide you with the opportunity for a high return. Typically, variable annuities will have a number of different investment options to choose from, as does the Prudential Premier Advisor variable annuity. But, because you are still working within the parameters of an equity-related product, you will still be exposed to potential downside market risk.
Also, a variable annuity can eat away at returns due to the substantial amount of fees that these vehicles can be subject to. This is because variable annuities generally charge fees from several different places – including a front and/or back-end load, annual management fees, administrative charges, and additional fees if there are any optional riders attached. For this reason, as well as the fact that variable annuities are exposed to market-related risk, it can be somewhat challenging to obtain high returns with these types of annuities.
Before moving on to the details about the annuity, there are some legal details that need to be disclosed…
This is an independent annuity review, and because of that, there will be no recommendations provided here with regard to either purchasing or selling any type of annuity products. Prudential has not endorsed this annuity review in any way. The information presented in this review is solely for the purpose of providing an opinion so that the reader can see my personal perspective and from that, determine whether this annuity may or may not fit in with their personal financial portfolio.
Prior to purchasing any financial product or service, it is wise to pursue your own due diligence. It is also a good idea to consult with a properly licensed and competent financial professional. This can help you with better determining whether or not the financial product or service could be a good fit for your specific goals and needs. All of the names, trademarks, and materials that were used for this annuity review are the property of their respective owners.
How Prudential Describes the Premier Advisor Variable Annuity
Prudential describes the Premier Advisor variable annuity as a financial vehicle that offers:
- Tax Efficiency – This annuity allows tax-free transfers and rebalancing, as well as the potential for tax deferral on any growth of the investments, until the time of withdrawal.
- Investment Choice and Flexibility – It is possible to create a personalized portfolio with this annuity by selecting from a broad array of investment choices from well-known asset management firms like BlackRock, ProFunds, and T. Rowe Price.
- Guaranteed Retirement Income – The Premier Advisor annuity also provides guaranteed income for life via annuitization or through the addition of optional living benefits.
- Beneficiary Protection – The annuity also offers a built-in standard death benefit. An enhanced death benefit may be added – which offers the opportunity for a higher payout – for an additional fee.
For all of the intricate details about this annuity, you can take a look HERE.
How a Financial Advisor May “Pitch” this Annuity to Clients
Given its diverse array of investment options, it is likely that a financial advisor would “pitch” the Prudential Premier Advisor Variable Annuity as a financial vehicle that offers diversity, along with the ability to obtain market-related returns. These, in turn, could help your money to keep pace with rising inflation over time – which is something that fixed annuity products are not typically able to do. It is also possible that an advisor would tout the lifetime income feature on this annuity.
Yet, while this is all well and good, variable annuities are not necessarily known for being the best alternative for generating lifetime income. While you can obtain a stream of income for life, oftentimes, due to the risk to the insurance company involved, these products end up only generating the same amount of income – or less – than safer options such as fixed annuities.
That being the case, would you really want to endure sleepless nights wondering what the market is going to do, and worrying that your hard-earned principal could be lost before you retire?
Variable annuities can be confusing. Because of that, it is important that you know what you’re getting into, and you know what questions you should ask before moving forward. With that in mind, if you would like some additional tips on what you need to know before buying an annuity, just simply click here so that you can immediately access our free report on how to shop for an annuity.
What About Fees on the Prudential Premier Advisor Variable Annuity?
As with any other type of financial vehicle, it is essential that you consider the fees that may be involved, as these could make a big impact in terms of your investment return, as well as the amount of income in retirement that you may (or may not) end up with.
While the Prudential Premier Advisor variable annuity allows you access to the full account value at any time, with no initial sales charge or contingent deferred sales charge, don’t let that fool you into believing that there are no fees at all, because that’s just simply not the case.
With this annuity, there is an annual insurance charge of 0.55%. This is applied as a percentage of the daily net assets of the variable sub-accounts. But that’s not all. You could also be subject to an annual maintenance fee of either $50 or 2% of the account value – whichever amount is less. (This, however, will be waived if the sum of all your purchase payments is $100,000 or more).
In addition, be careful with variable annuities, because you could also be hit with an annual management fee on each and every one of the investments that you choose for your annuity’s sub-account. All told, the fees on the Premier Advisor annuity could make it necessary for the underlying investments to perform quite well every year in order to just break even, much less earn a sizeable overall amount. And I think we all know that equity-related products aren’t likely to do that!
The Annuity Gator’s End Take on the Premier Advisor Variable Annuity from Prudential
Where this annuity works the best:
- For those who are looking for market-related growth
- For those who are seeking lifetime income
- For those who are seeking a way to diversify their assets
Where this annuity works the worst:
- For those who have a low-risk tolerance
- For those who do not intend on using the lifetime income feature
If you’ve been teetering on the brink of purchasing a variable annuity – or any annuity, for that matter – but you’ve been hesitant to move forward because you just aren’t sure which annuity might be right for you, it is important that you know all of the ins and the outs of a particular product before you sign on the dotted line. This is because an annuity should always be considered as a long-term financial commitment – and if you do end up determining that a particular annuity just isn’t for you after you’ve purchased it, it could be fairly expensive to get out of it.
If you are still leaning towards the Prudential Premier Advisor Variable Annuity, there are some nice benefits that can be had. However, this particular annuity may also fall somewhat short – particular if you are seeking the safety of your principal.
So, if you still have any questions as to whether or not this annuity would fit into your overall financial plans, then please feel free to reach out to us directly via our online contact form here and our annuity team will be happy to assist you.
Need Additional Info? Did You See Any Mistakes?
We realize that this annuity review was a bit lengthy – and for that, we thank you for sticking with us through to the end here. But we would much rather provide too much detail on an annuity than not enough. So, if you felt that this annuity review was helpful, then please feel free to forward it on to anyone else that you think may benefit from it, too.
Also, as humans will often do, we also understand that information about annuities can change quickly. Therefore, if you happened to notice any details in this review that were out of date or that need correction, please let us know that as well, and we will get it fixed quickly.
Are there any other annuities that you would like to also see reviewed?
If you have checked out our list of annuity reviews and there is another annuity (or more than one other annuity) that is not currently in our annuity review database, but that you would like to see reviewed, please let us know the name of the annuity or annuities and our team of annuity “geeks” will get right on it. So, be sure to check back with us soon to see any updates.
The Annuity Gator