Prudential Financial’s domestic annuity business, Prudential Annuities, has just introduced a new line of variable annuity products. According to the Wall Street Journal press release, “Prudential Annuities Launches Prudential Premier Investment,” this new line of variable annuities focuses on tax deferral and the flexibility of its investments. More than three-quarters of Americans paid more taxes in 2013 than they did in 2012. Since investments are putting more tax pressure on investors, Prudential Annuities sought to ease that tax pressure with their newest variable annuities. Your asset growth is tax-deferred and there are no taxes when making transfers in your annuity portfolio. Prudential Premier Investment can help you increase your wealth and manage your taxes in a more efficient manner.
There are also some important features with these variable annuities that help with future savings, protect beneficiaries, and help to manage changing market cycles. Investments are flexible and let you choose between managed, guided, or customized plans. The investments are exclusive and include the top brand names and managers. A Return of Purchase Payments Death Benefits is an optional rider that will help protect your heirs. These variable annuities cost less and are less complex than traditional variable annuities with living benefit riders. Their new fee structure is “pro growth” and is an innovation in the annuity industry. There is also increased flexibility because the Prudential Premier Investment variable annuities offer B share and C share classes.
I’ve blogged before about how innovation is key when it comes to the latest annuity products. Prudential Annuities strives to meet the consumer demand for guaranteed retirement income with their newest line of variable annuities. You can customize your own portfolio with the Prudential Premier Investment annuity. There is a wide range of diversification options. Three of Prudential’s main goals are offering the best “choice, flexibility and oversight”. As with any variable annuity, make sure that you know the fees, surrender charges, and product limitations up front. Variable annuities are meant to be long term investments to protect your retirement future. There is the chance that you will not increase your income if markets decline. Speak with an annuity expert to weigh the pros and cons of using a variable annuity in your retirement portfolio.
Written by Rachel Summit