
Athene AccuMax 7 Fixed Indexed Annuity Review: Everything You Need To Know
The Athene AccuMax 7 Fixed Indexed Annuity is a long-term financial product designed to offer growth potential while protecting your savings from market downturns. With its innovative crediting strategies and flexible options, this annuity is aimed at individuals who want to grow their savings with limited risk. Below, we provide an independent review to help you assess whether it aligns with your financial goals.
Key Features of the Athene AccuMax 7
Category | Details |
---|---|
Minimum Premium | $10,000 |
Maximum Premium | $1,000,000 (larger amounts may be accepted with approval) |
Withdrawal Charge Schedule | Contract Year: 1, 2, 3, 4, 5, 6, 7, 8+ |
Free Withdrawal Amount | Greater of 10% of accumulated value or premium annually without penalties |
Indexes Available | - S&P 500® |
Interest Crediting Strategies | - 7-Year Point-to-Point |
Fixed Interest Rate | Low Band: 3.35% |
Participation Rates | 7-Year Point-to-Point: |
Market Value Adjustment (MVA) | Applied to withdrawals exceeding free amounts during the withdrawal charge period (not applicable in CA) |
Waivers | - Confinement Waiver: Available after 1 year; 60 consecutive days of qualified care required |
Tax Treatment | Tax-deferred growth; withdrawals subject to income tax and potential 10% federal penalty if before age 59½ |
The Good
- Competitive Growth Potential:
- High participation rates on index strategies (up to 410% on the Shiller Barclays CAPE® Allocator 6 Index for the 7-Year Point-to-Point strategy) offer meaningful growth opportunities.
- Principal Protection:
- A -10% floor rate protects against major market downturns, ensuring your savings won’t be significantly impacted by negative market performance.
- Guaranteed Rates:
- Rates are locked in for the withdrawal charge period, providing stability and predictability over the term of the annuity.
- Flexible Crediting Options:
- Offers seven different interest crediting strategies, including fixed rates and both short-term and long-term index strategies.
- Death Benefit Enhancements:
- Guarantees beneficiaries receive the greater of the accumulated value or the minimum guaranteed contract value.
- Access to Funds When Needed:
- Includes penalty-free withdrawal options for up to 10% annually and waivers for terminal illness or confinement in a care facility.
The Bad
- Capped Growth Potential:
- While participation rates are competitive, excess return indices include fees and costs that reduce overall performance.
- Liquidity Limitations:
- Withdrawals beyond the free withdrawal amount during the first seven years are subject to withdrawal charges and potential Market Value Adjustments (MVA).
- Complexity:
- The variety of strategies, terms, and embedded fees can be difficult to understand without professional guidance.
- State-Specific Restrictions:
- Some waivers and benefits, such as the Terminal Illness Waiver, are not available in all states (e.g., California).
- Not Ideal for Short-Term Needs:
- This annuity is designed for long-term growth and is not suitable for those who require frequent or immediate access to their funds.
What to Consider Before Deciding
The Athene AccuMax 7 is a sophisticated product with features that may appeal to certain types of investors. Here are some factors to evaluate when deciding if it’s right for you:
- Your Financial Goals: Are you looking for long-term growth with principal protection, or do you prefer higher-risk investments with the potential for higher returns?
- Your Liquidity Needs: Will the free withdrawal amount and waivers be sufficient to cover your potential financial needs during the withdrawal charge period?
- Your Understanding of the Product: Are you comfortable with the complexity of crediting strategies, participation rates, and embedded costs, or would you benefit from professional advice?
- Your Tax Situation: Would the tax-deferred growth provide meaningful benefits in your specific financial scenario?
Why You Might Want to Speak to a Financial Advisor
This product’s complexity makes it essential to consult with a financial advisor before making a decision. An advisor can:
- Explain the product’s features, fees, and potential benefits.
- Help you compare it to other retirement tools.
- Ensure that it aligns with your overall financial plan and risk tolerance.
Conclusion
The Athene AccuMax 7 Fixed Indexed Annuity offers a blend of growth potential and principal protection, making it a compelling option for long-term retirement planning. With its competitive participation rates, guaranteed stability, and innovative crediting options, it caters to individuals seeking a balance between growth and safety. However, its complexity, liquidity limitations, and capped growth potential mean it may not be the right fit for everyone.
Use the information provided here to evaluate how this annuity aligns with your financial goals and consult a professional to make an informed decision. Feel free to contact us here for a review of your financial situation.
Thank you,
Derek Notman & Drew Faloon