Transamerica Annuity Review

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Types of Annuities Offered by Transamerica

Transamerica Annuity

Absence of Fixed Index Annuities

  • Transamerica does not offer Fixed Index Annuities (FIAs). FIAs provide a balance between risk and return, offering better protection against market downturns compared to RILA and variable annuities.
Transamerica Fixed Annuity Rates

Risk and Fees Comparison

  • Risk: Both RILA and variable annuities expose the investor to market risk, meaning there’s a possibility of losing money if the linked markets or investment choices underperform.
  • Fees: These annuities generally have higher fees than FIAs. The fees can include management fees, mortality and expense risk charges, and administrative fees, making them more expensive.

Example of Fee Impact:

  • Suppose you invest $100,000 in a variable annuity with a 2% annual fee. Over 20 years, without considering any returns or losses, this fee alone can amount to a significant reduction in your investment value due to the compounding effect of fees.
Transamerica Annuities

Comparison of Annuity Types

Annuity TypeMarket RiskFeesSuitability
RILA AnnuitiesHighHighInvestors willing to accept risk
Variable AnnuitiesHighHighInvestors seeking higher returns
Fixed Index AnnuitiesModerateLowerInvestors seeking balance
Transamerica Annuity

Conclusion

Transamerica’s offering of RILA and variable annuities caters to investors who are willing to take on more market risk for potentially higher returns. However, the absence of FIAs and the higher fees associated with these products might make them less appealing to those seeking a more balanced annuity option. It’s essential to weigh the risks and costs against your financial goals and risk tolerance.

For more detailed information or to discuss which annuity product might be the best fit for your financial goals, contact us today for a free quote.

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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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