My Masterdex X is Puzzling Me? Please help

[BUCKEYE]

Hi,

I am confused and need some advice from you. I have a masterdex 10 annuity from Allianz. it is 11 years old now. I have been reading my annual report and it says that the surrender value is way less than the withdrawl value.

If I start withdrawing my 10% free each year, will I eventually get all the money that is in the account?

If I surrender it, then it says it is 2,000 less than fair market value. It is NOT a roth ira. I only make 200/year on it and might as well had put it in my savings account. I also read that Allianz is not a fdic. If they ever went under, I would not have a dime to my name. Please help me with any advice on this. I am now 67. and don't have a big nest egg, so worried about what to do. Thanks.

 

[MartinJ]

You should see two values. One is surrender value and the other is merely a roll up rate that is used to figure out income payment rate if you choose to annuitize. Generally once you annuitize, you cannot surrender any money from the contract.

Yes, CD's can actually perform better than index annuities. Unfortunately most sales agents paint a picture that you are likely to earn stock market like returns.

Not FDIC insured but protected by your state's guarantee fund up to a certain dollar amount cap. What state are you in?

Would be helpful if you posted a link to the prospectus so that you can get specific answers rather than general answers.

 

[DHK]

Hi,

I am confused and need some advice from you. I have a masterdex 10 annuity from Allianz. it is 11 years old now. I have been reading my annual report and it says that the surrender value is way less than the withdrawl value.

If I start withdrawing my 10% free each year, will I eventually get all the money that is in the account?

If I surrender it, then it says it is 2,000 less than fair market value. It is NOT a roth ira. I only make 200/year on it and might as well had put it in my savings account. I also read that Allianz is not a fdic. If they ever went under, I would not have a dime to my name. Please help me with any advice on this. I am now 67. and don't have a big nest egg, so worried about what to do. Thanks.

https://www.allianzlife.com/annuiti...ties/fixed_indexed_annuities/masterdex_x.aspx

First, there is NO prospectus as a prospectus is only required for Variable Annuities and the MasterDex X annuity is a Fixed Indexed Annuity - not subject to be registered as a security with the SEC.

Second, Allianz is one of the LARGEST annuity companies in the world. No, it is not covered by FDIC. It's better. It is a 100% legal reserve insurance company. State guarantee funds, if needed, would be subject to various limits according to each state.

Allianz is rated A+ with a Stable outlook.

A.M. Best's Consumer Insurance Information Center

A+ is a superior ratings strength. Ratings isn't everything, but it sure gives me peace of mind.

A.M. Best's Consumer Insurance Information Center

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Just to clarify - we are talking about MasterDex X and not MasterDex 10, right? They are two different products.

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Btw, your savings account is probably paying far less than 1% and has for a few years now. I bet that this FIA has paid 3-4x that amount based on the index performance over the past few years.

 

[scagnt83]

Hi,

I am confused and need some advice from you. I have a masterdex 10 annuity from Allianz. it is 11 years old now. I have been reading my annual report and it says that the surrender value is way less than the withdrawl value.

If I start withdrawing my 10% free each year, will I eventually get all the money that is in the account?

If I surrender it, then it says it is 2,000 less than fair market value. It is NOT a roth ira. I only make 200/year on it and might as well had put it in my savings account. I also read that Allianz is not a fdic. If they ever went under, I would not have a dime to my name. Please help me with any advice on this. I am now 67. and don't have a big nest egg, so worried about what to do. Thanks.

The Masterdex X is a 10 year annuity. However, the initial bonus you received on the deposit takes 11 years to fully vest. So you are not able to withdraw the full account value until after year 11. But it should be very close in value, and not a significant difference.


The product didnt return much, because it is not an accumulation focused product. It is designed to have a strong income rider to take a lifetime income with. If all you wanted to do was accumulate funds, it was certainly not the right product for you to be in. Nor will it be going forward.

You are able to take out the 10% per year, but if it is the Masterdex X, you should be able to take out a good bit more than just 10% (without penalty).

If you want accumulation, you need to find an accumulation focused product. Or find an agent that knows what they are doing.

 

[DHK]

One advantage of Allianz that I haven't found anywhere else, is that the 10% free withdrawal is based on INITIAL contract value, and not based on (de)accumulation value each year.

So, if you had $500,000 in an Allianz contract (without a living benefit rider), you can withdraw $50,000 each year for 10 years. Any gains could be withdrawn after the 11th year so you keep your contribution bonus.

Most other annuities, withdrawals would start at $50,000... but the next year would be $45,000 (10% of $450,000) and so on. Each year, the amount would be less and less based on the new contract value for the year.