Is the MasterDex Annuity from Allianz Insurance Company a good retirement investment to buy?

Question

Is the MasterDex Annuity from Allianz Insurance company of NY a good retirement investment to buy ?

My wife is 62 years old and has just inherited a modest amount of money. We are ' comfortable ' financially and our Financial Planner has suggested that she buy a MasterDex Annuity from Allianz Life Insurance Company of NY. He explained that it is a fixed-index annuity adding that they are a Geman company. He further advised that it pays an additional 3% the first year if you invest a minumum of 100K adding that you can annutize within 6-7 years without anyshort surrender penalty fee.

I have read some negative reviews re the MasterDex Annuity from Alliaz ( including that it pays one of the highest sales commissions ). I don't mind buyingan Annuity that pays a high sales commision as long as I get a good rate too.

I have also read that ' secondary market ' annuities are a bette retirement investment paying as much as 7-7.5% interest ?

Is the MasterDex Annuity a good annuity to buy or are there beter annuities such as ' secondary market ' annuities that are a better investment ?
If so, which annuities are better ?

What are the 'pros' and 'cons' of buyinga MasterDex Annuity from Allianz ?

Our Financial Planner has also sugested building a CD ldder ' in additinto this annuity ?

Answer 1

Sounds like you need a new financial planner.



While I understand your sentiment, why would you want to pay a commission when you don't have to? You are paying something for nothing and the fact your advisor is recommending this garbage suggests he is not looking out for your interests.



At least check out Vanguard:



https://personal.vanguard.com/us/whatweoffer/retirementincome/guaranteed-annuities



And do some more research online for



Fixed immediate annuities with/without a guarantee and with/without an inflation index.







You can do a CD ladder yourself -- also on the cheap with complete security from Vanguard. The ladder part just means the CD's mature at different times and pay income every month or quarter. Nothing complex or worth paying someone to do or manage for you.



It is more important that you and your wife sit down with each other and figure out (1) exactly how much you spending per year now and (2) how much you expect to spend per year over the next five years.

Answer 2

An annuity, oftentimes, can't grant you a "return on your investment". You get that share, particular, yet you purchase it, with the money you pay in. i'm not an annuity fan. Annuities are often in basic terms a stable sources attention, in case you a million. have maxed out all your different retirement strategies and a pair of. attempt to "shield" sources - by way of fact in case you pay 100K to purchase into the annuity, to get in spite of the certain return is (probable 3 - 4%), you have misplaced your 100K. If some thing occurs, and you may desire to faucet that 100K, you're procuring it returned, at yet another fee, and giving up that 4% for existence. CD Ladders are going to get you crap returns at the instant, nicely below the projected inflation costs. All in all, that's certainly an investment question, not coverage - yet i'm going to assist you to recognize good off the bat, i'm not keen on annuities. once you're finding, you ought to earnings what the certain returns are. those are the only ones that count variety.

Answer 3

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