AboutBruce Julien Expertise I can answer questions on and raise issues clients overlook in the areas of Estate Planning as far as taxes and distribution flow problems, Asset Management as far as appropriateness of assets and allocations for a desired goal and the value a consumer gets for their costs, Tax Planning related to Income and Estates, and Insurance/Annuity questions particularly in light of suitability to the consumer.
Experience I became a CPA in 1991 and began offering financial advice in 1992. I am a Registered Investment Advisor which means I sign off on putting clients' interests first in a fiduciary role.
Education/Credentials BA in Accounting, University of Maryland 1990
ten years ago my wife purchased a GuaranteedAnnuityy. she was told that the quarantee
was 6% of her investment. recently she decided to cash it in and found to he amazement that she had less than her initial investment. How can this be?
ANSWER: You have to take that up with the insurance company. Bet you were "told" this all by the agent but lo and behold, you were really sold something you didn't fully understand. Happens a lot. Agent fudges things so you buy, insurance company has toexplain the details to you later on the phone.
Good luck, sorry
Bruce
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QUESTION: 6% growth is guaranteed in contract. Annuity also offers retirement income monthly checks. Now... I see the way it is fixed you can never get the full balance in account. from their monthly payments. I have not taken any payments. Before closing acct., I spoke with 2 reps at the company and they both assured me because of the length of time I have had the contract I was free to withdraw the full balance of my account with no penalties. Have letter confirming no penalties. I closed account . Rolled over the account into a new IRA elsewhere. I recd the balance in the account (now less than initial investment), but no 6% growth in the initial investment sum which was gtd.. I called asking for the 6% due on the original investment, but was told because I did not take the monthly payments I lost the gtd. 6%. I asked the person to tell me where it says this in my original contract. Was told it would take 2 days to get a copy and then the rep would call me. Rep gave their word they would call today. No one called. Does not say this in contract. Was not advised this when I spoke with their 2 reps. before closing acct. Who has government control over insurance companies in California? Telepone nbr? If I need an attorney, what should their specialty be?
Who should I contact for an attorney? Any suggestions on how I should pursue this? Thanks!
Answer You will lose this argument though a consumer should have more guidance from the agent/company. They offer all these guaranteed growth riders that say you will have a phantom account generating 6% minimum. However you can't access the pile of cash, you can use that calculated value as a base to generate income in some predetermined format. It will appear as a rider in your contract when you get it. It will be convolutedly written. Your agent originally probably whitewashed the issue and let you believe or even flat out told you "you'll make 6% guaranteed period"
There never was a 6% compounded number for you to access in a lump like you thought. That was a phantom number to be used as a base for income stream. You did not incur a penalty. You got the account value which by your emails was obviously less than 6% compounded. Nobody explained the difference at the company which might be your own best case argument
State handles insurance issues but I doubt you'll get far. Really sorry for you Chuck but I do see a lot of people with a similar story.
