How would you like the peace of mind knowing you'll have guaranteed income after retirement? An annuity can do just that! Within the MRIC 403(b) and 457(b) investment plans, annuities are products that provide a stream of income for its investor based on the return earned and the amount of deposited.
There are two types of annuities: fixed and variable. With a fixed annuity, the investment provider (insurance company) can guarantee a specific monetary disbursement to the investor (accountholder) based on the initial investment. The investor can receive same payment for the life of the contract and this makes fixed annuities popular among those nearing retirement. Fixed annuities have a specific rate of interest for a certain timeframe. On the other hand, when variable annuities are purchased from an investment provider, investments are made into sub accounts of the investors' choosing. The sub-accounts are similar in nature to mutual funds and can be very diverse. The investor could receive higher payments depending on performance of these sub-accounts. Variable annuities offer a greater opportunity for growth, but they also have higher risks. One thing both types of annuities have in common are the additional fees associated with these accounts. Fixed and variable annuities include many different expenses in order to guarantee income for life. When comparing investment providers, be sure to ask for a "break down" of fees included in the contract. Here are some of the most common: insurance charges, the mortality and expense fees (also called M&E fees), administrative fees, distribution fees, management fees, surrender charges and early withdrawal fees. A financial representative assisting you is normally compensated from a portion of the fees paid. There may also be wrap fees, riders, and optional feature fees. We encourage you to obtain an itemized list of expenses. VALIC (Salaried and Commission Representatives)
Portfolio Director (Fixed and Variable TaxDeferred Annuity)
- No annual fee, front sales, or surrender charge for plan distributions.
- 61 Variable Sub Accounts.
- 2 fixed accounts - Offers ability to pay guaranteed income, but does not require annuitization as well offers dozens of annuity payments including; Lifetime, Joint and Survivor, Designated Amount, Designated Period, Systematic Withdrawals, etc.
Add to Compare Go to Summary Fee Descriptions for Products Product Name: Portfolio Director Fixed and Variable Annuity 0.00% - 1.25% Expense Ratio: 0.75% - 1.25% (Separate Acct Fee includes mortality guarantee, amount varies by fund and does not apply to fixed account investments) Other Fees: - Surrender charge of 5% of last 5 years deposits for internal exchanges with other MRIC vendors $16.50 Third Party Administration Fee: $16.50 to $264.94 Annual Fees for a $10,000 Portfolio: PlanMember (Fee-Based and/or Commission-Based Advisor) The Legend Group (Fee-Based and/or Commission-Based) GLP & Associates, Inc. (Fee-Based and/or Commission-Based Advisor) MEA Financial Services/Paradigm Equities, Inc.* (Commission-Based Advisor) Midwest Capital Advisors (Fee-Only Advisor)