What Will We Cover in this Annuity Review?In this annuity review, we will be going over the following information about the Transamerica Vanguard 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.For those who have been considering the purchase of an annuity because they 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 Transamerica Vanguard Variable Annuity could be a potential option. However, before going out and making a commitment on this – or any – annuity, it is recommended that you first have a good understanding of just exactly how this product works so that you know what to anticipate. Annuities are 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 TrustIf you have never been to our website before, please allow us first welcome you here to AnnuityGator.com. We encompass a team of experienced and knowledgeable financial professionals who focus on providing highly informative and unbiased annuity reviews. While you may have noticed other similar websites on your quest for annuity information, 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 Transamerica Vanguard Variable Annuity. Or, you may have recently attended an annuity seminar where, in return for a free lunch or dinner, you listened to a presentation about this or a similar annuity. But, 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 their annuities, such as:
- Highest income payouts
- Low Fees
- Top-rated annuity carriers
Transamerica I-Share Variable Annuity at a Glance
|Type of Product||Variable Annuity|
|S&P Rating||S&P Global rating of A- (as of
|Phone Number||(800) 797-2643|
Opening Thoughts on the Transamerica Vanguard Variable AnnuityTransamerica has been in the business of helping its clients to grow and protect wealth since 1904. Founded in San Francisco, the company grew and expanded quickly – even in the early years of financial turmoil in the United States. “In 1999, Transamerica was acquired by the Aegon Group, one of the world’s leading providers of life insurance, pensions, and asset management. Today, roughly 25,000 employees support more than 29 million customers around the globe.” “Aegon’s roots actually go back 175 years, and it now does business in 20 countries. In 2012, the company created the Aegon Retirement Readiness Index, which provides a quantitative benchmark of how well-prepared workers are for retirement across a number of countries in Europe, the Americas, Asia, and Australia. It also studies which behaviors are helping to drive retirement readiness.” While variable annuities have taken somewhat of a back seat to other, safer, alternatives like fixed and fixed indexed annuities over the past decade, there is a definite niche for these products – particularly with those who are seeking the opportunity for a higher rate of return, as well as the tax-deferred growth of assets.
Before we get into the gritty details, there are some required legal disclosures here…This is an independent annuity product review. It is not a recommendation to purchase or to sell an annuity. Transamerica 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.
How the Transamerica Vanguard Variable Annuity is DescribedThe Transamerica Vanguard Variable Annuity is described as an annuity that can help you to save more for retirement. With this product, investors can obtain the following advantages:
- Low Fees
- Control Over Investments
- Flexibility to Draw Income
How a Financial Advisor Might “Pitch” this AnnuityGiven its diverse array of investment options, it is likely that a financial advisor would “pitch” the Vanguard 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? Annuities can be confusing products – and 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 the Fees Associated with the Transamerica Vanguard Variable Annuity?When considering any type of insurance or financial product, you would be hard-pressed to find one that doesn’t have at least some charges or fees. In fact, variable annuities are oftentimes riddled with fees, which can have a negative impact on your overall return. Therefore, there are, of course, a variety of fees that are involved with the Vanguard Variable Annuity from Transamerica. The total fund operating expenses can range from a minimum of 0.11% to a maximum of 0.40%. These expenses are deducted from fund assets, including management fees, distribution and/or service 912b-1) fees, and other expenses. There are also fees added if you opt to add any of the optional riders. For instance, you could add an(n):
- Return of Premium Death Benefit – 0.20%
- Guaranteed Lifetime Withdrawal Benefit – cost is between 1.20% and 2.00%
The Annuity Gator’s End Take on the Transamerica Vanguard Variable AnnuityWhere 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
- For those who have a low-risk tolerance
- For those who do not intend on using the lifetime income feature