Annuity Stress Test™

Sample “Annuity Stress Test™” Analysis Output:

The following are sample charts generated by our proprietary software.  A brief description of what the chart illustrates is provided immediately following each of the charts below. 

NOTE: For an in depth disclosure of the hypothetical assumptions used in the analysis which yielded these results below please review the disclosures at the bottom of this page.

 

Hypothetical Projected VA Account Values - Strong Equity Market

This “Hypothetical Projected VA Account Values – Strong Equity Market” chart above illustrates that when assuming a “strong equity market” and a “stable fixed income market” the combined annual income withdrawals plus the contract fees will cause this annuity's contract to “go to zero” somewhere near the annuitant's age 84.  Once this annuity's contract value “goes to zero” the income benefit may continue paying an income to the annuitant, but the death benefit meant for heirs will be forfeited once the income rider is triggered. 

The income amount received from the income benefit rider may or may not be similar to the amount of the prior income withdrawals previously being taken from the contract as these future income payouts will be determined based on the elections made by the annuitant as well as the annuitant's age (at the time of electing to utilize the income benefit rider.) 

This chart also shows that the combined cumulative fees charged against this annuity contract over the next 19 years could total approximately $300,000 which is 75% of its current value, while the cumulative income payout could total approximately $600,000 (or only 150% of the contract's current value) over the same time period.

 

Hypothetical Projected VA Account Values - 33% Equity Market Loss

This “Hypothetical Projected VA Account Values – 33% Equity Market Loss” chart* above illustrates that assuming a “33% equity market loss” and a “stable fixed income market” the combined annual income withdrawal plus the contract fees will cause this contract to “go to zero” somewhere near the annuitant's age 78.  Once this contract value “goes to zero” the income benefit will continue paying an income to the annuitant, but the death benefit meant for heirs will be forfeited once the income rider is triggered.  

The income amount received may or may not be similar to the amount of the prior income withdrawals previously being taken from the contract as these future income payouts will be adjusted based on the elections made by the annuitant as well as the annuitant's age at the time of electing to utilize the income benefit rider. 

 

 
Please click here to begin the process of having your variable annuity “stress tested” by the Annuity Report™ team using our proprietary software.  Your personalized report will include our exclusive Annuity Drain Rate™ Analysis.

 

 

 

* NOTE:  A 33% equity market loss with only 70% allocated to equities results in only a 23.1% loss on the total contract value if we assume there were no losses to the 30% allocated to fixed income.

 

IMPORTANT Disclosures:  The projections or other information generated by this report regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results.  Results will vary with each use and over time.  This is a hypothetical example and is not representative of any specific situation.  Indices are unmanaged and cannot be invested into directly. 

Equity markets are represented by the historical returns of the S&P 500 Index.  The S&P 500 Index is a capitalization weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of stocks representing all major industries.  The S&P 500 Index is an unmanaged index which cannot be invested into directly.  Unmanaged index returns do not reflect fees, expenses or sales charges.  Index performance is not indicative of the performance of any investment.  Past performance is no guarantee of future results.

Fixed income markets are illustrated using an assumed fixed rate of return as disclosed on the actual report output.