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Global Atlantic Income 150 SE Fixed Index Annuity

Today’s review is on the Global Atlantic Income 150 SE Fixed Index Annuity. The purpose of this review is to show you the strengths and weaknesses of this Annuity. To make an informed decision, it is important to consider all available facts.

  • Product type
  • Fees
  • Investment options that are available and their realistic long-term investment return expectations
  • How it can best help your financial plan
  • How it’s most poorly used as part of your financial plan

Global Atlantic Fixed Index Annuity Quick Facts

Product NameIncome 150+ SE
IssuerGlobal Atlantic Financial Group
Type of ProductIndex Annuity
S&P Best RatingA- “Okay”
Phone Number(800) 457-8803
Websitehttps://www.globalatlantic.com//

This review of Global Atlantic Fixed Index Annuity is an independent review at the request of readers. Intended to explain my perspective when breaking down the positives and negatives of this particular model annuity. This is an independent product review, not a recommendation to buy or sell an annuity. Global Atlantic  has not endorsed this review in any way, nor do I receive any compensation for this review. Before purchasing any investment product be sure to do your own due diligence and consult a properly licensed professional, should you have specific questions related to your circumstances. This review is not intended to give specific advice and your adviser may know more about your circumstances to make an appropriate recommendation. All names, marks, and materials used for this review are property of their respective owners.

Before we go into the review, some information on

Global Atlantic Financial Group

Symetra is an American family of companies providing retirement plans, employee benefits, annuities, and life insurance through independent distributors nationwide. The main headquarters of the company is located in Bellevue, Washington.

There are a few ways that Agents might pitch Global Atlantic Income 150 SE Fixed Index Annuity

  • Low fee rider
  • Possibility for growth
  • Principal protection
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Charge10%9%8%7%6%5%4%3%2%1%

Fees for Global Atlantic Income 150 SE 

Free withdrawal: 10% free withdrawal rate starting from year 2.

Income Rider charge: 1.05%

Cap: 2.75%

Global Atlantic Income 150 SE Fixed

With most annuities giving you a 10% free withdrawal rate with more appealing benefits, this annuity goes to the top-bottom when it comes to accessing your own money.

The agent might give you a pitch saying the income rider is only 1.10% however, is that really true? When you purchase the income rider for this annuity your cap increases and your participation decreases depending on what index you chose, this many times makes the income rider fee look much higher than it seems to be. Later in this review, we will show you the rates depending on the available indexes for this annuity.

How does the Global Atlantic Income 150 SE Fixed Index Work?

Global Atlantic Income 150 SE Fixed Index Annuity works similarly to other Fixed index annuities however, you have to pay attention to the “bonuses” that they offer you, the state in the brochure that they will give you 20% income boost based on the purchased amount, and after that, if you don’t get any withdrawals they will boost by 7.5% every year for the next 4 years.

However, you might think that is a lot and is a more than fair amount taking into account the current market conditions, the 1% minimum guarantee and the possibility to make “grow” at 2.75% capped returns for the S&P 500. But before making any assumptions you should understand where those bonuses go and how they are calculated.

The best way to put it is by understanding there are 2 buckets, one, the Contract Value which represents the actual money that you use to purchase the annuity, which only grows with the Index that is tight to, in case you chose that option and the returns are capped at 2.75% minus 1.05% annual fee. The income boosts (bonuses) are calculated in the second bucket which is the Withdrawal Base, imagine this as an imaginary amount of money only use to calculate your income base for the future. They use this bucket to make it seem that they are really giving you those big bonuses but in reality, that is only used to calculate your income.

In the case that you’d like to withdraw your money in the future, you’ll withdraw it from the first bucket, the Contract Value, and its potential to grow is really doubtful since inflation rates right now are above 8% per year and the best-case scenario would be 1.70% return per year (taking into account that you chose the S&P 500 index, which is capped at 2.75 minus 1.05 of the annual fee).

Many people confuse these bonuses with actual money, but as we saw above this is not the case. Below you can see a hypothetical example of how your money could perform if you purchase the Global Atlantic Income 150 SE Fixed Index Annuity.

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Investment Options and Strategies for the Global Atlantic Income 150 SE Fixed Index Annuity:

Global Atlantic Income 150 SE Fixed Index Annuity has 3 Index options available to invest in, and also a fixed income option is illustrated below.

  • S&P 500
  • MSCI EAFE
  • Russell 2000
  • PIMPCO Balanced
  • BlackRock Diversa Volatilty
  • Fixed Interest Option

This Fixed Index Annuity offers different indexes to choose from, the most popular being the S&P 500. However, there are some considerations that you have to be aware of, first, all indexes are capped at 2.75%, which means that your before fee returns will be a max of 2.75% taking into consideration that you will have to add the 1.05% fee to those returns.

Global Atlantic Income 150 SE Fixed

It also offers a 1.5% fixed interest option that will translate to a 0.45% return after fees, which will make the guarantee (1%) amount even greater than the actual return.

When it comes to the investment options, there’s not a major disadvantage from this product compared to other similar products in the industry the only issue is the low cap that it offers. There are some similar products in the industry that offer you a better cap or par rate for investment options.

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How Does the Income 150+ Guaranteed Lifetime Income Benefit Plus Work?

As we explained above this Global Atlantic Income 150+ SE income rider will give you a 20% ‘Income Boost” at the beginning of the contract and 7.5% every year for the next 4 years of the contract. However, as we stated before, people confuse these “income boosts” with real growth of your contract value when in reality is only a boost that will be reflected on the Withdrawal Base account, that is only used to calculate the amount of income that you will receive in the future.

Global Atlantic Income 150 SE Fixed

The only purpose of this income rider is to deplete your money to zero, with the “comfort” that you will get lifetime income, however, when you see the numbers and you calculate inflation, this “guaranteed income” will not add much value to your retirement as they promise in the brochure guide.

To plan for your retirement is important to create a Retirement Income Analysis where the advisor can create different scenarios taking in consideration variables like inflation, social security benefits, economic conditions, etc. By doing this you can create a more objective retirement plan where you can navigate different types of economic conditions without having to worry about running out of money in your retirement.

Where does it work best:

  • For those looking for capital appreciation
  • For those looking to
  • For those to keep up with inflation and not grow their money

Where does it least work:

  • People who need liquidity
  • Growth Potential
  • For people looking to grow their money

Summary of the Global Atlantic Income 150+ SE Fixed Index Annuity

Global Atlantic Income 150 SE Fixed

There saw some good characteristics when reviewing Symetra Stride Fixed Index Annuity, however, when we got to the income rider and how potentially is not designed in your best interest, it makes this annuity not a good choice for someone looking to create capital appreciation. Also, the low withdrawal rate of 7% makes it difficult to choose it over other similar products offering 10% withdrawal rates.

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Global Atlantic Income 150 SE Fixed

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