We are retired and want to gain some upside as well as protect our money from a large downside. Also, we want to be able to access some funds should we need them without any penalties.
Since your goal is to have some upside while protecting your assets from large decreases, a fixed index annuity might be appropriate in your situation.
As for the exact product, Symetra Edge Plus, there are some pros and cons. There are two different terms, a 5 year and 7 year surrender period, with the longer surrender period giving higher caps. The average rating is an A which is a good indication that they will be able to meet their future obligations. Their cap rates are fair but there are companies that have higher caps and more index crediting options. Some companies also offer unlimited upside as oppose to a cap on earnings like Symetra. There is a liquidity options allowing you to access 10% of your funds if needed which is standard for most insurance companies.
Before making your decision, I would ask for a few things from your advisor.
- Ask them if they are a fiduciary. This will indicate whether your advisor has your best interest in mind.
- Ask them for a COMDEX report. This is a report that compares the rating of multiple insurance companies relative to each other. It will give you an idea of Symetra’s relative safety.
- Ask to see other companies with similar strategies and a reason why they recommended this particular product. There are companies with higher ratings and rates, such as North American and Voya, and it would be in your benefit to know why those products were not selected.
I hope this helps. Feel free to reach out if you have any questions.
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