The Power of Annuity Audit

Brendon Kelly   |   October 2022   |   1-minute read
Annuity Audit 1200x400

The Story

John and Jane Cash purchased a variable annuity on Jan. 1, 2010, with the goal of using the annuity to create an income in retirement.

The Problem

John would like to retire in five to seven years and needs the funds from the annuity to generate an income to live off at that time. He is concerned that fees from the annuity are reducing the returns and is looking for alternatives.

Client Profile

  • Husband John, age 65
  • Wife Jane, age 63
  • Arizona residents

How Annuity Audit Works

John’s advisor worked with Ash’s Annuity Audit team to determine if there are other solutions available for the client. The advisor provided basic policy information and the team used it to develop a comprehensive review of the existing annuity, explaining what the client owns and how it works.

In this case, because it’s a variable annuity, the audit report discussed additional options, explaining the best uses for each, and allowing the client and advisor to determine which is the best fit for current goals—including the option of holding on to the existing variable annuity.

The Result

Based on the Annuity Audit, the advisor was able to present four options:

  • Keep their current variable annuity
  • Move to a fixed index annuity
  • Consider a MYGA (multi-year guaranteed annuity)
  • Move to a RILA

The advisor was able to explain the pros and cons to John and Jane, focusing on their risk tolerance. They decided jointly, because they were getting close to retirement, that they were comfortable with giving up some possible appreciation for protection from loss.

They moved the funds to a fixed index annuity, which gives them upside potential and downside protection from any sort of loss.

Get the details of how it all works — download the sample output report from this annuity audit.

About the Author

Retirement is one of the most important financial events in a person’s life. As SVP, Retirement, Brendon Kelley facilitates our team to make planning for retirement as straightforward as possible. From having the initial conversation to handling licensing and submitting applications, Brendon’s committed to keeping the annuity process running smoothly.