Variable annuities are a polarizing topic within the financial industry. DCM can help you better understand your annuity by providing a thorough analysis, including a breakdown of fees, features, and riders.
We can also determine if there are more suitable, less expensive options and provide a side-by-side comparison to your existing annuities. If the analysis indicates a new annuity might make sense, we now have the ability to manage your new annuity at your request.
Historically, as a fee-only fiduciary, we have avoided the conflicts of interest that can arise from the large commissions annuities often offer financial advisors. However, relatively new to the industry are “Advisory” annuities. These “Advisory” annuities offer low-cost, no-load alternatives that strip out many of the fees associated with traditional commission-based annuities.
This allows us the opportunity to manage annuities in the same manner as we manage investment accounts, including an annual advisory fee commensurate with fees charged on other client assets under our management. Additional costs associated with these types of annuities can be as little as a $20 per month administrative fee levied by the issuing company.
If you have an annuity and are interested in conducting this analysis, please contact your DCM advisor to discuss next steps. We are happy to help.
This report was prepared by Donaldson Capital Management, LLC, a federally registered investment adviser under the Investment Advisers Act of 1940. Registration as an investment adviser does not imply a certain level of skill or training. The oral and written communications of an adviser provide you with information about which you determine to hire or retain an adviser. Information in these materials are from sources Donaldson Capital Management, LLC deems reliable, however we do not attest to their accuracy.
An index is a portfolio of specific securities, the performance of which is often used as a benchmark in judging the relative performance to certain asset classes. Indexes are unmanaged portfolios and investors cannot invest directly in an index. An index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the performance shown. Past performance is not a guarantee of future results. The mention of specific securities and sectors illustrates the application of our investment approach only and is not to be considered a recommendation by Donaldson Capital Management, LLC.
S&P 500: Standard & Poor’s (S&P) 500 Index. The S&P 500 Index is an unmanaged, capitalization-weighted index designed to measure the performance of the broad U.S. economy through changes in the aggregate market value of 500 stocks representing all major industries.