What will we be discussing in this annuity review?In this review of the Symetra Edge Elite Fixed Indexed Annuity, we will be discussing the following information:
- Annuity type
- Charges and fees
- Realistic expectations
- Where the annuity fits best
- Where the annuity may not fit in
Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in. At Annuity Gator, we make the complex, simple.If you’re planning for retirement, but are unsure about how you can give your savings a boost, while at the same time keeping your principal safe from a market “correction,” there are actually some solutions for you. One of those is the fixed indexed annuity. As more Baby Boomers inch closer to retirement (it is estimated that 10,000 people turn age 65 every day in the U.S.), making financial decisions can be a bit overwhelming – particularly in light of the multitude of marketing materials aimed at gaining your attention. As an example, it is possible that you have run across ads stating “I hate annuities” to “Generate a guaranteed income with an annuity” – and these conflicting messages can make you feel like a deer in the headlights. The reality is, though, a successful retirement has a lot more to do with income generation than it does with net worth. And, while there are countless financial advisors out there who would love to sell you on the next hot stock or mutual fund, there are few who know how to successfully convert what you’ve already saved into a lifetime stream of income that you can count on for the rest of your lifetime. That’s where the Annuity Gator comes in.
Annuity and Retirement Income Planning Information that You Can TrustIf you have never been to our website before, please allow us to officially welcome you here to Annuity Gator. Who are we…and why should you care? At Annuity Gator, we are a team of experienced financial and annuity professionals who focus on providing in-depth, and unbiased, annuity reviews on the Internet. We have been at this for quite a while now – far longer than our competitors have – even though there are now a number of “copycat” websites that are popping up all over the Internet. (Imitation is a form of flattery, though, isn’t it?!) Our primary mission is providing in-depth information and reviews about annuities and retirement income strategies to consumers – as well as to financial professionals – so that they know exactly what they may (or may not!) be getting into when considering and/or selling an annuity. While annuities can help you to reach your goal of lifetime income in retirement, they can also be highly complex financial vehicles, so it helps to have someone who is adept in how annuities work, and who can pare down the massive amount of “fine print” into something that is more easily understood. Take, for instance, the newly-offered Symetra Edge Elite fixed indexed annuity. This annuity can provide you with growth, safety, and income – all rolled into one product. But, as enticing as this might sound, it may not necessarily be the right strategy for you. That being said, this review of the Edge Elite annuity from Symetra can help you find the answer regarding whether or not it can help you achieve your short and long-term financial goals. So, if you’re ready to learn more, fasten your seatbelt and let’s go!
The Symetra Edge Elite Fixed Indexed Annuity at a Glance
|Product Name||Edge Elite|
|Type of Product||Fixed Indexed Annuity|
|A.M. Best Rating||A (Excellent)|
|Phone Number||(800) 796-3872|
Opening Thoughts on the Symetra Edge Elite Fixed Indexed AnnuitySymetra is backed by more than $55 billion in assets (as of year-end 2019), and its parent company, Sumitomo Life, is one of the largest life insurance companies in Japan – and together, Sumitomo Life and Symetra have total assets of over $300 billion. Established in 1957, Symetra offers a wide array of wealth protection and retirement products, including fixed and fixed indexed annuities, as well as term, permanent, universal, bank-owned, and corporate-owned life insurance. Due to its financial strength and stability, as well as its positive reputation for paying out policyholders’ claims, Symetra is highly rated by the insurer rating agencies. In addition to earning an A from A.M. Best, these ratings include an A from Standard & Poor’s, and an A1 from Moody’s. Over the past several years, due in large part to the continuous ups and downs of the stock market, the demand for fixed indexed annuities has increased substantially. One reason for this is because, in addition to keeping principal safe (in any market condition,) these financial vehicles can also provide you with the opportunity to earn market-linked growth, as well as a set amount of income that could last you for the remainder of your lifetime. Yet, even though this might sound like a win-win-win situation, the reality is that if something sounds like it may be too good to be true, then it typically is – so you should ideally get as much in-depth detail as possible if you are considering committing to it for the long term.
Before we get into the 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. Symetra 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 is the Edge Elite Fixed Indexed Annuity Described?According to Symetra’s product literature on the Edge Elite, this annuity is described as a single premium fixed indexed product that can provide both growth and principal protection for your retirement. This annuity offers nine different indexed account options, as well as an optional fixed account. If you choose an indexed account option and the market index you choose goes up, the indexed account can be credited interest – up to a certain maximum, or “cap.” However, if the underlying index goes down, it will not incur a loss. As with other annuities, the funds in your Edge Elite annuity account will grow on a tax-deferred basis. This means that there is no tax due on the gain until the time of withdrawal – which in turn, can enhance the upward potential over time. During the initial contract period, you are allowed to withdraw up to 10% of the contract value per year without penalty. There may, however, be some exceptions to this penalty, such as a terminal illness diagnosis, hospitalization, or the need to reside in a nursing home for at least a certain period of time. There is also a death benefit on the Edge Elite annuity from Symetra. Here, upon your death, a named beneficiary (or multiple beneficiaries) will receive the contract value or the cash surrender value – whichever is more. To review all of the “bells and whistles” that are associated with the Symetra Edge Elite fixed indexed annuity, you can check out the product brochure here.
How an Insurance or Financial Professional Might Describe this AnnuityGiven that the Edge Elite from Symetra is a fixed indexed annuity, it offers some nice benefits – of which an insurance or financial advisor will likely key in on, such as the potential for higher credited earnings than that of a regular fixed annuity, and protection from a market downturn, which means that you won’t lose any of your initial investment or your credited earnings due to negative future performance of your chosen index(es). Also, because you can allocate your funds in this annuity to one or more indices, there is some flexibility to design the account to best fit your particular needs and goals. Plus, with the death benefit, there is also some security in knowing that loved ones can receive a benefit in case of the unexpected. However, it is also important to note that, like with most other cap on the earnings that may be credited to the account. So, even if the underlying index (or indexes) that you are tracking has an absolutely stellar performance in a given time period, the amount that your account will be credited is limited to the amount of the “cap.” This could drastically stifle the return – particularly if the underlying index returns a significantly high performance in a given period.
And then there is the potential of incurring fees…Although there are no annual administrative or contract fees associated with the Symetra Edge Elite fixed indexed annuity, if you withdraw assets within the first five or seven years of your contract (depending on which option you choose,) your principal may be reduced by a contingent deferred sales charge (CDSC), which is otherwise known as a withdrawal or surrender charge.
Edge Elite 5-Year Surrender Charge Schedule
The Annuity Gator’s End Take on the Symetra Edge Elite Fixed Indexed AnnuityWhere it works the 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 or seven years of purchasing the annuity
- Do not intend to use the lifetime income feature of the annuity