Allianz Vision Variable Annuity offered by Allianz

Allianz is an easy target.

The company is one of the major players in the annuity market and they are active in the much maligned indexed annuity market.

The Vision variable annuity product is actually a pretty interesting and flexible product.

There is what is referred to as a cumulative withdrawal benefit that I think is available with some of the optional living benefits.

The cumulative withdrawal benefit sort of allows owners to save income for a rainy day.

If for any reason the contract owner decides to take less current income (maybe they don't need as much early in their retirement or while they still have some emplyment income), they can stash the difference between what they take and what they would have received into the cumulative withdrawal value.  

The accumulated funds can then be used at a future date when income needs may be higher.

This is a pretty expensive variable annuity product.

Total fees and expenses can get up and around the 3.5 percent range.

How can a financial advisor justify 3.5 percent in fees year in and year out when interest rates and investment returns are so low?

That is such a high hurdle.  You may as well be investing in a hedge fund that charges 2 and 20.

Maybe Allianz is too accustomed to the indexed market where sales commissions are high and the products are not as transparent.

It seems that much of the variable annuity market is headed in the direction of lower fees.

Would be great of the Allianz VAs head in the same direction.