Does Your Annuity Salesperson Stay In Touch With You

…If Not, It Can Be Costing You A Lot Of Money!

There are so many changes going on these days. Regarding your annuity, there could be a powerful move you can make, which could put money in your pocket – today.

In today’s marketplace, many policies have an MVA (Market Value Adjustment). If yours does have the MVA, this could be a big help. Because interest rates are so low, the bonds that your annuity carrier purchased with your money may be worth more than the original purchase price. Here is where there is potential for a significant cash windfall.

Here’s the general idea:

When you buy a Fixed Indexed Annuity, your annuity company then purchases bonds. The interest received, generally provides options on a selected index, like the S&P. This is how you can make money via market gains without having your money in the market. But when interest rates drop, as they have been doing, the value of those bonds usually increases. If your contract has an MVA as many do, a large portion of that gain may be yours, if you surrender that annuity.

Many times that MVA payout can wash out or even surpass the surrender charge in your existing cont

ract, leaving you with a healthy profit, net of surrender fees. This should be carefully reviewed. Now you can enter, upon approval from a new carrier, into a new annuity. Many carriers have a hefty bonus that can set you ahead. And you may be able to find a better-crediting strategy as well, with higher participation in a given index.

We’ve seen clients make a net 7-9% day-one gain using this planning technique, taking advantage of the MVA on the existing annuity, and a bonus of 5-7% on a new annuity. On a $300,000 annuity that can add up to a $21,000- 27,000 net gain from day one. You can do 1035 or direct transfer to avoid taxes if you prefer.

If your annuity has this powerful MVA provision and your annuity advisor hasn’t called you to discuss this critical topic, it may be costing you a nice tidy sum of money!!


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About the Author:

Jay Winestein is a long time resident of Seattle. His practice has served many individuals to meet and surpass their retirement and estate planning objectives, focused on reducing Federal and State taxes in retirement, while also developing and protecting income streams to last a lifetime. Website:

Office: (206) 681-9411 | OMNI Tax Advisors