Vanguard Annuity Transition to Transamerica

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wesgreen
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Re: Vanguard Annuity Transition to Transamerica

Post by wesgreen »

Mel Lindauer wrote: Wed Jan 13, 2021 12:31 pm
Broken Man 1999 wrote: Wed Jan 13, 2021 7:49 am
Mel Lindauer wrote: Tue Jan 12, 2021 10:27 pm
Broken Man 1999 wrote: Tue Jan 12, 2021 2:42 pm FWIW, I received a 12/31/2020 YTD statement for our VA via snail-mail today.

The statement had all the account activities I had done for 2020, which were numerous as I used our VA to do rebalancing last year.

I did spot checks of a few transactions and they were all correct, and the ending 2020 total balance and sub-accounts balances were all accurate.

Hopefully those having issues with the transition have seen them resolved.

Broken Man 1999
That statement was from Vanguard, not TA, wasn't it?
No, it was definitely from Transamerica. Sorry, I should have had that in the first post. The last thing I have received from Vanguard was a statement of my transaction on the Friday before transition. It was mailed, also. Usually I don't get mailed statements except Household Statement at end of year. That made sense, though, as there was nothing left after transition at Vanguard.

Broken Man 1999
Wonder if anyone else received a statement like that from TA? I certainly didn't.
I did; 2 days ago
Robert Birchell 2
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Re: Vanguard Annuity Transition to Transamerica

Post by Robert Birchell 2 »

I rec'd statements from Transamerica via USPS on 1-13-21. Information seems correct but after reading all the post I will re check all details. The statements are well done and easy to follow.
sicemwarriors
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Re: Vanguard Annuity Transition to Transamerica

Post by sicemwarriors »

Interesting. I have received no such statement from Transamerica. Haven't even tried logging in to my account which I created about a month ago.

For those of us who might want to jump ship and do a 1035, are there any other "dependable" options other than Fidelity?
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HueyLD
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Re: Vanguard Annuity Transition to Transamerica

Post by HueyLD »

sicemwarriors wrote: Fri Jan 15, 2021 9:22 am Interesting. I have received no such statement from Transamerica. Haven't even tried logging in to my account which I created about a month ago.

For those of us who might want to jump ship and do a 1035, are there any other "dependable" options other than Fidelity?
Your statement option may have been set to “email” by TA. Mine was and I changed it to “by mail” when I was able to log in for a short time.

For a 1035 exchange, you call Fidelity and they do all the paperwork for you. 1-800-642-6904.
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Cyclesafe
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Re: Vanguard Annuity Transition to Transamerica

Post by Cyclesafe »

Mel Lindauer wrote: Wed Jan 13, 2021 12:31 pm
Wonder if anyone else received a statement like that from TA? I certainly didn't.
Got my statement from TA via USPS on 1/13. Totally reconciles with my numbers.

I also got a quick response to my emailed questions. Not necessary the answers I wanted, but I was happy that somebody was actually home.
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Seasonal
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Re: Vanguard Annuity Transition to Transamerica

Post by Seasonal »

Email from TA:
Transamerica
Aiming to Serve You Better
RESOURCES, INFORMATION TO HELP YOU MANAGE YOUR ACCOUNT
Dear Customer,

We’re writing today to update you about your Vanguard Variable Annuity, now administered by Transamerica.

Since the transition in early December, we’ve heard from customers expressing concern about longer than anticipated call wait times, online account set up (which is optional for those who prefer to manage their account online), and website navigation difficulties. We apologize if you are one of our customers who experienced these challenges. We need to serve you better, and we are diligently working to deliver an improved and exceptional customer service experience for you.

We can assure you that your money is safe, your information is secure, and we have several resolution steps underway, including adding staff to support you during this transition. Each customer concern or question will be addressed and resolved.

If you have questions or have experienced difficulties, the information below may help.
1. ONLINE RESOURCES FOR YOU
If you prefer to view or manage your account online, you can set up online access to your account now, or at any time in the future, at www.transamerica.com. There, you will see our message welcoming policyholders of the “Transamerica VVA,” the Vanguard Variable Annuity now issued and administered by Transamerica. Click on the “LEARN MORE” link, and there you’ll find resources to help you manage your policy, like Create an Account, VVA Performance details and answers to FAQs (Frequently Asked Questions).
2. ACCOUNT LOG IN
Next time you want to access your policy, visit secure.transamerica.com. Bookmark this address. It is a different URL that will provide direct access to logging in to your account.
3. WITHDRAWALS BY PHONE
For withdrawals over the phone, in order to help ensure that your account remains secure and protected, we ask that you complete our Telephone Withdrawal Form . Please fill it out, sign it and send it to us via email or regular mail. We’ll keep it on file so that you can make withdrawals over the phone at any time.
4. FUND EXCHANGES
Fund exchanges are available to you at any time.
• If you manage your account online, you can initiate fund exchanges securely via the web after you log in.
• For those who prefer to use a paper form, our Fund Exchange Form enables you to initiate a transfer between fund portfolios whenever you would like. Each time you want to make an exchange between funds, please complete the form and return it to us by email or U.S. mail at the contact information below.
5. REACH OUT TO US
We are here to help. We are dedicated to providing you with enhanced, personalized service. The best way to reach us is through one of these contacts:
By mail:
Transamerica
PO Box 369
Cedar Rapids, IA 52406–0369
By email:
Annuities.CustomerService@Transamerica.com
(Replies are currently averaging two business days.)
Call us:
800-462-2391, Monday through Friday, from 9 a.m. ET to 5 p.m. ET to reach a representative. (We are working to reduce our wait times.)
We are committed to providing you with best-in-class customer service. For those customers who experienced any problems with this transition, we appreciate your patience, and we will make this right for you.

Best regards,
Matt McCorry Signature

Matt McCorry
Chief Operating Officer, Individual Solution

The telephone withdrawal form requires a Medallion Signature Guarantee
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Stinky
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Re: Vanguard Annuity Transition to Transamerica

Post by Stinky »

Seasonal wrote: Fri Jan 15, 2021 6:36 pm Email from TA:
Transamerica
Aiming to Serve You Better
RESOURCES, INFORMATION TO HELP YOU MANAGE YOUR ACCOUNT
Dear Customer,

We’re writing today to update you about your Vanguard Variable Annuity, now administered by Transamerica.

[snip}

We are committed to providing you with best-in-class customer service. For those customers who experienced any problems with this transition, we appreciate your patience, and we will make this right for you.

Best regards,
Matt McCorry Signature

Matt McCorry
Chief Operating Officer, Individual Solution
The telephone withdrawal form requires a Medallion Signature Guarantee
Glad that Transamerica is sending out a message like this.

Better late than never.
Retired life insurance company financial executive who sincerely believes that ”It’s a GREAT day to be alive!”
Robert Birchell 2
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Re: Vanguard Annuity Transition to Transamerica

Post by Robert Birchell 2 »

Mel Lindauer wrote: Thu Dec 31, 2020 12:55 pm
HueyLD wrote: Thu Dec 31, 2020 12:00 pm It is time to exercise your 1035 exchange right.
Just be careful to make that you're not losing any valuable options by doing the 1035 exchange. That could be especially true if you have a very old annuity with great guarantees.
My annuity was purchased in 1991. If possible would you please list what valuable options and guarantees you are referring to.
Thanks
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Cyclesafe
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Re: Vanguard Annuity Transition to Transamerica

Post by Cyclesafe »

Robert Birchell 2 wrote: Sun Jan 17, 2021 7:58 am
Mel Lindauer wrote: Thu Dec 31, 2020 12:55 pm
HueyLD wrote: Thu Dec 31, 2020 12:00 pm It is time to exercise your 1035 exchange right.
Just be careful to make that you're not losing any valuable options by doing the 1035 exchange. That could be especially true if you have a very old annuity with great guarantees.
My annuity was purchased in 1991. If possible would you please list what valuable options and guarantees you are referring to.
Thanks
Your contract offers better terms than anything you'll likely get from a company that you are 1035'ing to.
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Stinky
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Re: Vanguard Annuity Transition to Transamerica

Post by Stinky »

Robert Birchell 2 wrote: Sun Jan 17, 2021 7:58 am
Mel Lindauer wrote: Thu Dec 31, 2020 12:55 pm
HueyLD wrote: Thu Dec 31, 2020 12:00 pm It is time to exercise your 1035 exchange right.
Just be careful to make that you're not losing any valuable options by doing the 1035 exchange. That could be especially true if you have a very old annuity with great guarantees.
My annuity was purchased in 1991. If possible would you please list what valuable options and guarantees you are referring to.
Thanks
Look at the interest rates that are guaranteed in various parts of the contract. For example, what level of interest rates are embedded in the annuitization options?

Those interest rates are almost certainly more favorable than the interest rates available in a newly issued contract, put in force through a 1035 exchange.

I don't own a Vanguard annuity, so I can't comment directly on what those interest rates are. But others on the Board have posted about them.

If you'll give some additional information about your contract and its interest rates, you'll get some help from the folks here.
Retired life insurance company financial executive who sincerely believes that ”It’s a GREAT day to be alive!”
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Cyclesafe
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Re: Vanguard Annuity Transition to Transamerica

Post by Cyclesafe »

Stinky wrote: Sun Jan 17, 2021 9:11 am
Robert Birchell 2 wrote: Sun Jan 17, 2021 7:58 am
Mel Lindauer wrote: Thu Dec 31, 2020 12:55 pm
HueyLD wrote: Thu Dec 31, 2020 12:00 pm It is time to exercise your 1035 exchange right.
Just be careful to make that you're not losing any valuable options by doing the 1035 exchange. That could be especially true if you have a very old annuity with great guarantees.
My annuity was purchased in 1991. If possible would you please list what valuable options and guarantees you are referring to.
Thanks
Look at the interest rates that are guaranteed in various parts of the contract. For example, what level of interest rates are embedded in the annuitization options?

Those interest rates are almost certainly more favorable than the interest rates available in a newly issued contract, put in force through a 1035 exchange.

I don't own a Vanguard annuity, so I can't comment directly on what those interest rates are. But others on the Board have posted about them.

If you'll give some additional information about your contract and its interest rates, you'll get some help from the folks here.
My 1999 Vanguard variable annuity contract offers term certain annuitization at 4% (not including the prorated return of non-taxed basis).
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HueyLD
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Re: Vanguard Annuity Transition to Transamerica

Post by HueyLD »

You said: “ My 1999 Vanguard variable annuity contract offers term certain annuitization at 4% (not including the prorated return of non-taxed basis).”

Is the term certain for 10 years or 20 years or another duration?

Does it include joint and last survivor benefit?

Will the annuity payments be fixed or variable?
Robert Birchell 2
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Re: Vanguard Annuity Transition to Transamerica

Post by Robert Birchell 2 »

Thanks for all the replies. I do have the 4% interest rate so I'll stand pat for now and see see how Transamerica performs as far as customer service.
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Cyclesafe
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Re: Vanguard Annuity Transition to Transamerica

Post by Cyclesafe »

HueyLD wrote: Sun Jan 17, 2021 10:22 am You said: “ My 1999 Vanguard variable annuity contract offers term certain annuitization at 4% (not including the prorated return of non-taxed basis).”

Is the term certain for 10 years or 20 years or another duration?

Does it include joint and last survivor benefit?

Will the annuity payments be fixed or variable?

My term certain offer is for anywhere between 10 and 30 years.

The return on any life annuity depends on the date of annuitant's death (obviously the second annuitant's death for J&LS). The longer the life, the better the return. The better way to think of this is to compare the payment offered by Transamerica with the existing contract and what would be on offer from another insurance company. Remember to account for Adjusted Annuitant Age in the case of the Transamerica contract and state premium taxes (if any) for all annuitizations from all vendors. See immediateannuities.com

I have only looked at fixed annuity payment options. I am unfamiliar with variable annuity payment options.
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frankly
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Commiseration and two newbie questions

Post by frankly »

New member here. Just weighing in to say I feel your pain with the switch from VA to TA of our variable annuities. I have tried on the phone so many times and for such long periods. I never spoke to a human. Vanguard was so easy to contact in comparison. Thanks for your many perspectives and struggles voiced here. At least I know I am not alone.

Two questions: (1) Re: the 1035 to Fidelity option -- does anyone know clearly whether the overall expenses are comparable? (2) Does anyone know if TA is going to raise the fees or leave them the same?

Thanks co-travelers
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Re: Vanguard Annuity Transition to Transamerica

Post by pascalwager »

I did two online percentage trades from two stock funds to a bond fund the other day and they doubled the trades--twice as much (~$120k) as I requested.
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Cyclesafe
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Re: Vanguard Annuity Transition to Transamerica

Post by Cyclesafe »

Let us know how this is resolved.

Somedays ago I did a 1% transfer that went fine. No email confirmations, but the transaction settled the day after it was placed. I'm going to transfer about 10% next week, hopefully there won't be any problems.
"Plans are useless; planning is indispensable.” (Dwight Eisenhower) | "Man plans, God laughs" (Yiddish proverb)
MrTardigrade
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Re: Vanguard Annuity Transition to Transamerica

Post by MrTardigrade »

Thanks for all posters on this thread. You've been a source of sanity.

I had a Vanguard VA so that I could invest in REITs without getting hit with a big tax bill. I made the judgment that the complications of a VA (thru Vanguard) were worth it for the extra diversity in my portfolio. Now I am less sure.

Couple questions:
  • Can you invest new cash into these TA-Administered VVA funds?
  • What's the best alternative REIT VA. . .Fidelity?
Mostly trying to decide whether to just "freeze" my existing REIT investments in place, keep it up with TA, or find a way to phase it out. . .

Thank you for any info/advice.
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Cyclesafe
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Re: Vanguard Annuity Transition to Transamerica

Post by Cyclesafe »

MrTardigrade wrote: Sat Jan 30, 2021 10:45 am Thanks for all posters on this thread. You've been a source of sanity.

I had a Vanguard VA so that I could invest in REITs without getting hit with a big tax bill. I made the judgment that the complications of a VA (thru Vanguard) were worth it for the extra diversity in my portfolio. Now I am less sure.

Couple questions:
  • Can you invest new cash into these TA-Administered VVA funds?
  • What's the best alternative REIT VA. . .Fidelity?
Mostly trying to decide whether to just "freeze" my existing REIT investments in place, keep it up with TA, or find a way to phase it out. . .

Thank you for any info/advice.
Instead consider allocating to REITS within a t-IRA or Roth and get out of the investment variable annuity altogether if you have no intent to annuitize. Unlike the former, withdrawals from an investment VA (and the taxable portion of annuitizations) are subject to the 3.8% NIIT from the first dollar received. Annuities may, depending on your state, be also subject to a premium tax haircut from the amount to be annuitized.

All questions, including whether you can add more money, can be answered by reading the prospectus:

https://www.transamerica.com/media/vang ... 122218.pdf

Remember though, TA can change these terms if they give the investor notice.

If not annuitizing and the total amount over basis is small, I'd put a priority on withdrawing over many years (after age 59 1/2) to minimize the tax bite. I don't know if there EVER was a good time to invest in a VA, but many of us were so focused on tax-free compounding that we were blind to the pitfalls. We regret at our leisure.
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Oicuryy
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Re: Vanguard Annuity Transition to Transamerica

Post by Oicuryy »

MrTardigrade wrote: Sat Jan 30, 2021 10:45 am Can you invest new cash into these TA-Administered VVA funds
Yes, per the prospectus supplement dated 10/1/20.
Following the Merger, TLIC will not issue new Contracts. Although Contracts will no longer be sold, additional purchase payments will continue to be permitted.
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MrTardigrade
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Re: Vanguard Annuity Transition to Transamerica

Post by MrTardigrade »

Cyclesafe wrote: Sat Jan 30, 2021 11:28 am
Instead consider allocating to REITS within a t-IRA or Roth and get out of the investment variable annuity altogether if you have no intent to annuitize. Unlike the former, withdrawals from an investment VA (and the taxable portion of annuitizations) are subject to the 3.8% NIIT from the first dollar received. Annuities may, depending on your state, be also subject to a premium tax haircut from the amount to be annuitized.

...

If not annuitizing and the total amount over basis is small, I'd put a priority on withdrawing over many years (after age 59 1/2) to minimize the tax bite. I don't know if there EVER was a good time to invest in a VA, but many of us were so focused on tax-free compounding that we were blind to the pitfalls. We regret at our leisure.
Thank you! My dilemma is this: I am fully booked up in my tax-advantaged accounts. There's no space.

So my options are:
  • Get out of REITs and lose diversity benefit
  • Move bonds outside of 401K/IRA into taxable; use that freed-up space for REITs
  • Muddle along with REIT in TA VVA, maybe moving to Fidelity if TA is intolerable
I can't complain, some people are suffering, and this is a good problem to have. I just know don't the right move. I'd even be willing to take a one-time tax/withdrawal penalty hit if I had confidence in the right target state. . .
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Re: Vanguard Annuity Transition to Transamerica

Post by pascalwager »

Cyclesafe wrote: Sat Jan 30, 2021 6:31 am Let us know how this is resolved.

Somedays ago I did a 1% transfer that went fine. No email confirmations, but the transaction settled the day after it was placed. I'm going to transfer about 10% next week, hopefully there won't be any problems.
There's a problem with their transfer software. I realized this just now after examining my transaction histories.

From my experience, for a single transfer from one sub-account to another, there's no problem; but if you transfer from two sub-accounts to a single sub-account at the same time (the software permits this), then the amounts shown arriving in the receiving sub-account are roughly double the sum shown leaving the respective donor sub-accounts.

My advice: Just do single transfers for now.

So, I'll probably proceed to do two separate correction transfers. I may need to do these on separate days. I'll also try to contact them, but they seem to be understaffed.
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pascalwager
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Re: Vanguard Annuity Transition to Transamerica

Post by pascalwager »

pascalwager wrote: Sat Jan 30, 2021 2:37 pm
Cyclesafe wrote: Sat Jan 30, 2021 6:31 am Let us know how this is resolved.

Somedays ago I did a 1% transfer that went fine. No email confirmations, but the transaction settled the day after it was placed. I'm going to transfer about 10% next week, hopefully there won't be any problems.
There's a problem with their transfer software. I realized this just now after examining my transaction histories.

From my experience, for a single transfer from one sub-account to another, there's no problem; but if you transfer from two sub-accounts to a single sub-account at the same time (the software permits this), then the amounts shown arriving in the receiving sub-account are roughly double the sum shown leaving the respective donor sub-accounts.

My advice: Just do single transfers for now.

So, I'll probably proceed to do two separate correction transfers. I may need to do these on separate days. I'll also try to contact them, but they seem to be understaffed.
Here's what it's doing for two-to-one transfers. It adds the initial estimation value to the calculated transfer value and uses the sum for the actual transfer. It checks out to the penny.
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pascalwager
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Re: Vanguard Annuity Transition to Transamerica

Post by pascalwager »

Seasonal wrote: Fri Jan 15, 2021 6:36 pm Email from TA:
Transamerica
Aiming to Serve You Better
RESOURCES, INFORMATION TO HELP YOU MANAGE YOUR ACCOUNT
Dear Customer,

We’re writing today to update you about your Vanguard Variable Annuity, now administered by Transamerica.

Since the transition in early December, we’ve heard from customers expressing concern about longer than anticipated call wait times, online account set up (which is optional for those who prefer to manage their account online), and website navigation difficulties. We apologize if you are one of our customers who experienced these challenges. We need to serve you better, and we are diligently working to deliver an improved and exceptional customer service experience for you.

We can assure you that your money is safe, your information is secure, and we have several resolution steps underway, including adding staff to support you during this transition. Each customer concern or question will be addressed and resolved.

If you have questions or have experienced difficulties, the information below may help.
1. ONLINE RESOURCES FOR YOU
If you prefer to view or manage your account online, you can set up online access to your account now, or at any time in the future, at www.transamerica.com. There, you will see our message welcoming policyholders of the “Transamerica VVA,” the Vanguard Variable Annuity now issued and administered by Transamerica. Click on the “LEARN MORE” link, and there you’ll find resources to help you manage your policy, like Create an Account, VVA Performance details and answers to FAQs (Frequently Asked Questions).
2. ACCOUNT LOG IN
Next time you want to access your policy, visit secure.transamerica.com. Bookmark this address. It is a different URL that will provide direct access to logging in to your account.
3. WITHDRAWALS BY PHONE
For withdrawals over the phone, in order to help ensure that your account remains secure and protected, we ask that you complete our Telephone Withdrawal Form . Please fill it out, sign it and send it to us via email or regular mail. We’ll keep it on file so that you can make withdrawals over the phone at any time.
4. FUND EXCHANGES
Fund exchanges are available to you at any time.
• If you manage your account online, you can initiate fund exchanges securely via the web after you log in.
• For those who prefer to use a paper form, our Fund Exchange Form enables you to initiate a transfer between fund portfolios whenever you would like. Each time you want to make an exchange between funds, please complete the form and return it to us by email or U.S. mail at the contact information below.
5. REACH OUT TO US
We are here to help. We are dedicated to providing you with enhanced, personalized service. The best way to reach us is through one of these contacts:
By mail:
Transamerica
PO Box 369
Cedar Rapids, IA 52406–0369
By email:
Annuities.CustomerService@Transamerica.com
(Replies are currently averaging two business days.)
Call us:
800-462-2391, Monday through Friday, from 9 a.m. ET to 5 p.m. ET to reach a representative. (We are working to reduce our wait times.)
We are committed to providing you with best-in-class customer service. For those customers who experienced any problems with this transition, we appreciate your patience, and we will make this right for you.

Best regards,
Matt McCorry Signature

Matt McCorry
Chief Operating Officer, Individual Solution
The telephone withdrawal form requires a Medallion Signature Guarantee
No, my money is not safe (see bolded above)--not safe from botched, simple, rebalance transfers due to faulty TA software.
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Cyclesafe
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Re: Vanguard Annuity Transition to Transamerica

Post by Cyclesafe »

pascalwager wrote: Sat Jan 30, 2021 2:37 pm
There's a problem with their transfer software. I realized this just now after examining my transaction histories.

From my experience, for a single transfer from one sub-account to another, there's no problem; but if you transfer from two sub-accounts to a single sub-account at the same time (the software permits this), then the amounts shown arriving in the receiving sub-account are roughly double the sum shown leaving the respective donor sub-accounts.

My advice: Just do single transfers for now.

So, I'll probably proceed to do two separate correction transfers. I may need to do these on separate days. I'll also try to contact them, but they seem to be understaffed.
Thanks for the heads up. I'll just transfer from single sub account to single subaccount and verify the completion of the transaction before initiating another transfer. BTW, the detail I had under Transaction History for my test transfer was undecipherable. Lots of share numbers, some unrelated to subaccounts not involved with the transfer and poor formatting.
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pascalwager
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Re: Vanguard Annuity Transition to Transamerica

Post by pascalwager »

Cyclesafe wrote: Sat Jan 30, 2021 9:32 pm
pascalwager wrote: Sat Jan 30, 2021 2:37 pm
There's a problem with their transfer software. I realized this just now after examining my transaction histories.

From my experience, for a single transfer from one sub-account to another, there's no problem; but if you transfer from two sub-accounts to a single sub-account at the same time (the software permits this), then the amounts shown arriving in the receiving sub-account are roughly double the sum shown leaving the respective donor sub-accounts.

My advice: Just do single transfers for now.

So, I'll probably proceed to do two separate correction transfers. I may need to do these on separate days. I'll also try to contact them, but they seem to be understaffed.
Thanks for the heads up. I'll just transfer from single sub account to single subaccount and verify the completion of the transaction before initiating another transfer. BTW, the detail I had under Transaction History for my test transfer was undecipherable. Lots of share numbers, some unrelated to subaccounts not involved with the transfer and poor formatting.
Yes, agreed, about the transaction history.

To generalize a little, Vanguard quit the annuity business because doing a good job wasn't remunerative--and they weren't willing to do a bad job. For TA, it may be remunerative because they are willing to do a bad job by keeping operating costs low.

I had my VA at TA for many years in the past and they did a good job. To rebalance you just gave them your entire desired AA in whole-number percentages and they made it happen.
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WolfgangPauli
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Re: Vanguard Annuity Transition to Transamerica

Post by WolfgangPauli »

My transfer went fine and my account actually was easy to set up on line. Never had to call them.

I just have a question about the account itself though. I was provided this account by an employer a long time ago where they fully funded it as the company failed the highly compensated test so we were locked out of the 401(k) for a year. So, they provided this. The cost basis is like $35K and it is now worth about $98K. It was all company contributions. I put a little in but not much.

What should I do with it? I fully max out my 401K, IRAs etc. etc. Should I contribute more? It is the Vanguard Balanced fund that I have in the annuity.

Thoughts?
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pascalwager
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Re: Vanguard Annuity Transition to Transamerica

Post by pascalwager »

WolfgangPauli wrote: Sun Jan 31, 2021 9:16 pm My transfer went fine and my account actually was easy to set up on line. Never had to call them.

I just have a question about the account itself though. I was provided this account by an employer a long time ago where they fully funded it as the company failed the highly compensated test so we were locked out of the 401(k) for a year. So, they provided this. The cost basis is like $35K and it is now worth about $98K. It was all company contributions. I put a little in but not much.

What should I do with it? I fully max out my 401K, IRAs etc. etc. Should I contribute more? It is the Vanguard Balanced fund that I have in the annuity.

Thoughts?
Variable annuities are an inferior (expensive) investment in most cases. Also, they come with limited sub-account choices.

An advisor got me into mine 25 years ago when I knew nothing about investing.

I think the default answer to your question is "NO!"
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Stinky
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Re: Vanguard Annuity Transition to Transamerica

Post by Stinky »

WolfgangPauli wrote: Sun Jan 31, 2021 9:16 pm My transfer went fine and my account actually was easy to set up on line. Never had to call them.

I just have a question about the account itself though. I was provided this account by an employer a long time ago where they fully funded it as the company failed the highly compensated test so we were locked out of the 401(k) for a year. So, they provided this. The cost basis is like $35K and it is now worth about $98K. It was all company contributions. I put a little in but not much.

What should I do with it? I fully max out my 401K, IRAs etc. etc. Should I contribute more? It is the Vanguard Balanced fund that I have in the annuity.

Thoughts?
The Vanguard Balanced fund is roughly 60% stocks and 40% bonds. Holding that fund inside a variable annuity is less tax-efficient than holding it in a taxable account. Earnings on your variable annuity will be taxed as "ordinary income" when withdrawn, rather than being afforded the lower tax rates charged on realized capital gains and qualified dividends. Also, the VA will not receive the "step up in basis" upon your death, which a taxable account would.

My general advice would be to surrender the variable annuity, either all in one lump sum or gradually over time to avoid jumping tax brackets, and then reinvesting the proceeds in your taxable accounts. By doing so, you would also avoid the VA policy charges, which are lower on the Vanguard annuity than on most VAs but still reduce your returns. I would not recommend contributing more to the annuity.

The possible exception to the "surrender" recommendation would be if you were to have Vanguard VA that has attractive "guaranteed" interest rates for annuitization or the "fixed" fund, and if you were to use your VA as a core part of your personal fixed income allocation. You might find some guaranteed interest rates in your policy for annuitization in the 4% range, which would be attractive in today's environment.

Please post back if you have questions about this.
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Acamil
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Re: Vanguard Annuity Transition to Transamerica

Post by Acamil »

I have become disillusioned with the service of Tranamerica. I decided to do 1035 to Fidelity. On Dec 22 I called Fidelity to start the 1035. On Dec 29 Transamerica sold me out of the subaccounts. After 14 days Fidelity did not receive check. I called TA waited 1 hour 20 minutes rep said check mailed and to wait a few more days. It took a few more phone calls and ultimately said they will have to send another check. The check finally arrived at Fidelity on Feb 09. 50 days after they closed my account. Terrible service TERRIBLE company. 50 days of not being able to use my money.
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Re: Vanguard Annuity Transition to Transamerica

Post by informal guide »

HueyLD wrote: Sun Jan 17, 2021 10:22 am You said: “ My 1999 Vanguard variable annuity contract offers term certain annuitization at 4% (not including the prorated return of non-taxed basis).”

Is the term certain for 10 years or 20 years or another duration?

Does it include joint and last survivor benefit?

Will the annuity payments be fixed or variable?
A term certain annuitization means that payments are not dependent on the owner or annuitant living or dying. In essence, the insurance company is guaranteeing you (and if you pass during the period, then your beneficiaries) the stated return and payments over the period chosen, through equal monthly payments.

Knowledgeable US investors today cannot find a low risk investment that guarantees a 4% annual return (by comparison, the Vanguard Total Bond Market Index Fund has an annual yield today of 1.16%). The risks are limited to the the claim paying ability of the insurance company and the lack of immediate liquidity if one needs the funds before the stated period. The interesting element is that current owners can make significant additional purchases into this annuity before dong a term certain annuitization (assuming it is a nonqualified annuity - i.e., an annuity funded with after tax dollars, rather than an IRA).
pascalwager
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Re: Vanguard Annuity Transition to Transamerica

Post by pascalwager »

TA eDelivery still doesn't work for me. I keep getting paper statements--which I don't like. Does it work for anyone else?
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Cyclesafe
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Re: Vanguard Annuity Transition to Transamerica

Post by Cyclesafe »

I'm still getting paper statements. Got one yesterday, in fact, for a transaction.

They seem to have fixed everything else though.
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Re: Vanguard Annuity Transition to Transamerica

Post by billyo44 »

:confused I too received my latest quarterly statement dated March 31st and am enrolled in e-delivery...tried to send a message to Customer Service...received an error message...called the 800 number...finally answered...the Rep said they would send the info to Technical Support...I reminded her this is a systemic problem with many others having the same issue...somehow I get the feeling this is a whole lot of talk and not much action...we'll see. I love the standard signoff message..."is there anything else I can help you with today?" While polite...please just fix the issue!
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Seasonal
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Re: Vanguard Annuity Transition to Transamerica

Post by Seasonal »

billyo44 wrote: Tue Apr 13, 2021 12:09 pmI love the standard signoff message..."is there anything else I can help you with today?"
I just had an online chat with another company. At the end I wrote, "Thanks. I don't have any other questions or issues. Be well. Bye". The response was the same, "is there anything else I can help you with today?"
pascalwager
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Re: Vanguard Annuity Transition to Transamerica

Post by pascalwager »

billyo44 wrote: Tue Apr 13, 2021 12:09 pm :confused I too received my latest quarterly statement dated March 31st and am enrolled in e-delivery...tried to send a message to Customer Service...received an error message...called the 800 number...finally answered...the Rep said they would send the info to Technical Support...I reminded her this is a systemic problem with many others having the same issue...somehow I get the feeling this is a whole lot of talk and not much action...we'll see. I love the standard signoff message..."is there anything else I can help you with today?" While polite...please just fix the issue!
Are you sure you're actually enrolled in eDelivery? I've made an attempt to enroll several times, but the Submit Button never loads. If you go to your eDelivery screen, you may see that one of the eDelivery check boxes is checked but also highlighted and not really "finished". Anyway, that's what I see. I think mine was trying to load for two months before I finally checked back when I continued to receive paper statements.

I do have the TA Secure Email now which at least allows easy communication with TA.
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Re: Vanguard Annuity Transition to Transamerica

Post by WolfgangPauli »

I am not a big fan of "e-delivery". If I were to have an untimely death it makes it real complicated for my heirs to figure things out. By keeping everything by mail, at the worse case, within 1 quarter they will know everything because paper statements will come and that will trigger them to investigate. If for some reason they cannot figure out how to get my email etc., they may have nothing to remind them or alert them of something.

Thank goodness my father thought of this. He had a stroke and while he was very organized his affairs were also fairly complicated. But, the mail kept coming and after a while I learned of everything he had - including a few insurance policies.
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billyo44
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Re: Vanguard Annuity Transition to Transamerica

Post by billyo44 »

When I go into the 'Policy Details' there is a line that reads "This policy is enrolled in eDelivery". I just 'edited' the eDelivery settings toggling between 'email' and 'paper' and then selecting 'email' on each choice, hit the 'submit' button...after a few seconds the screen refreshed. First time hitting the submit button seems to work...we'll see...fingers crossed.

The primary reason I'm not into paper statements via the USPS is that it's not an exception here when mail here is delivered into the wrong slots in the postal neighborhood cluster mailboxes. My neighbor just recently received some of my mail in their box. The idea of strangers opening my financial statements doesn't appeal to me. I've had many tracked deliveries shown 'delivered' but I never received them. Our local Postmaster confided in me that these exceptions are more common now given the new employees that have been hired in this area...good help is hard to get.
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pascalwager
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Re: Vanguard Annuity Transition to Transamerica

Post by pascalwager »

WolfgangPauli wrote: Tue Apr 13, 2021 8:11 pm I am not a big fan of "e-delivery". If I were to have an untimely death it makes it real complicated for my heirs to figure things out. By keeping everything by mail, at the worse case, within 1 quarter they will know everything because paper statements will come and that will trigger them to investigate. If for some reason they cannot figure out how to get my email etc., they may have nothing to remind them or alert them of something.

Thank goodness my father thought of this. He had a stroke and while he was very organized his affairs were also fairly complicated. But, the mail kept coming and after a while I learned of everything he had - including a few insurance policies.
I keep an updated list of my investment and banking accounts and send the list to my heir as necessary.

But given the apparent dysfunction at TA, I'm considering keeping the paper quarterly statements now. I did this from 1995 to 2018 when TA
didn't offer online accounts.
pascalwager
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Re: Vanguard Annuity Transition to Transamerica

Post by pascalwager »

billyo44 wrote: Wed Apr 14, 2021 8:46 am When I go into the 'Policy Details' there is a line that reads "This policy is enrolled in eDelivery". I just 'edited' the eDelivery settings toggling between 'email' and 'paper' and then selecting 'email' on each choice, hit the 'submit' button...after a few seconds the screen refreshed. First time hitting the submit button seems to work...we'll see...fingers crossed.

The primary reason I'm not into paper statements via the USPS is that it's not an exception here when mail here is delivered into the wrong slots in the postal neighborhood cluster mailboxes. My neighbor just recently received some of my mail in their box. The idea of strangers opening my financial statements doesn't appeal to me. I've had many tracked deliveries shown 'delivered' but I never received them. Our local Postmaster confided in me that these exceptions are more common now given the new employees that have been hired in this area...good help is hard to get.
I just now tried this as you described, but my screen never refreshes after I hit the Submit Button. And I do see "This policy is enrolled in eDelivery".
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Re: Vanguard Annuity Transition to Transamerica

Post by pascalwager »

I was told the following by TA last week or so:

"We are aware of an issue with the paper statements instead of providing electronic statements. Our development team is currently looking into this issue and hope to have a resolution shortly to correct this matter."
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Re: Vanguard Annuity Transition to Transamerica

Post by Stinky »

It looks like the Iowa insurance regulator is getting involved with Transamerica, due to complaints over its service on the Vanguard business. See the linked article.

I believe that Iowa is the domestic regulator for Transamerica, and thereby has significant influence over the company, especially when things are going badly.

https://insurancenewsnet.com/oarticle/i ... complaints
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HueyLD
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Re: Vanguard Annuity Transition to Transamerica

Post by HueyLD »

I certainly hope that the Iowa AG’s office performs a thorough investigation of TA’s inability to service its customers, especially former Vanguard VA customers.

What a disgrace. It is the worst company in America and Vanguard deserves some blame for throwing us the VA customers under the incompetent TA bus.
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Oicuryy
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Re: Vanguard Annuity Transition to Transamerica

Post by Oicuryy »

This morning I filed a complaint with my state's insurance commission. I annuitized in April. The payout is about 13% less than I think it should be based on the tables in the contract.

Ron
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Cyclesafe
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Re: Vanguard Annuity Transition to Transamerica

Post by Cyclesafe »

Oicuryy wrote: Tue May 25, 2021 2:47 pm This morning I filed a complaint with my state's insurance commission. I annuitized in April. The payout is about 13% less than I think it should be based on the tables in the contract.

Ron
Did you take into the account the prospectus changes for Adjusted Annuitant Age? See page 9 of the linked prospectus below:

https://www.sec.gov/Archives/edgar/data ... 620dn4.htm

More discussion here:

viewtopic.php?t=75482
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Re: Vanguard Annuity Transition to Transamerica

Post by Rex66 »

Oicuryy wrote: Tue May 25, 2021 2:47 pm This morning I filed a complaint with my state's insurance commission. I annuitized in April. The payout is about 13% less than I think it should be based on the tables in the contract.

Ron
Did you call the company first?

Years ago I had an issue where an insurance company tried to keep several k extra. They didn’t respond in writing but on phone tried to deny it. Strangely though after complaining I got a check for the exact amount which said bc I over paid. That didn’t make any sense as a reason but I guess to them saved them face.
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Oicuryy
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Re: Vanguard Annuity Transition to Transamerica

Post by Oicuryy »

Cyclesafe,

I considered that. Like you, I don't believe age adjustments apply to my contract. Scroll all the way down past all the financial stuff to page B-2 in the statement of additional information in your link to the prospectus. There are lines there showing age adjustments apply to the VVAP U 1001 contract but do not show them applying to the NA100A contract.

Rex66,

I emailed them. I knew from this thread they were not answering the phone. After a few email exchanges they told me to submit a detailed description of the problem in writing. I showed them the numbers and formulas I used and my sources in the contract and prospects. I got their reply Saturday. The gist of it is, "Please be assured that no errors were found in the handling of your policy or in the information you have been provided by Customer Service." That's all; no facts, no figures, no explanations. I am not assured.

Ron
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Stinky
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Re: Vanguard Annuity Transition to Transamerica

Post by Stinky »

Oicuryy wrote: Tue May 25, 2021 4:04 pm Rex66,

I emailed them. I knew from this thread they were not answering the phone. After a few email exchanges they told me to submit a detailed description of the problem in writing. I showed them the numbers and formulas I used and my sources in the contract and prospects. I got their reply Saturday. The gist of it is, "Please be assured that no errors were found in the handling of your policy or in the information you have been provided by Customer Service." That's all; no facts, no figures, no explanations. I am not assured.

Ron
You’ve done the right thing in complaining to your home state insurance department.

You could also make a complaint to the Iowa insurance department, as the domestic state and primary regulator of Transamerica. Won’t hurt, might help.
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Rex66
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Re: Vanguard Annuity Transition to Transamerica

Post by Rex66 »

Oicuryy wrote: Tue May 25, 2021 4:04 pm Cyclesafe,

I considered that. Like you, I don't believe age adjustments apply to my contract. Scroll all the way down past all the financial stuff to page B-2 in the statement of additional information in your link to the prospectus. There are lines there showing age adjustments apply to the VVAP U 1001 contract but do not show them applying to the NA100A contract.

Rex66,

I emailed them. I knew from this thread they were not answering the phone. After a few email exchanges they told me to submit a detailed description of the problem in writing. I showed them the numbers and formulas I used and my sources in the contract and prospects. I got their reply Saturday. The gist of it is, "Please be assured that no errors were found in the handling of your policy or in the information you have been provided by Customer Service." That's all; no facts, no figures, no explanations. I am not assured.

Ron
thats similar to my experience. wont suprise me if they try to tell the state that your contract goes with the age adjustments. you will need to be prepared to show how it doesnt (meaning all your original paperwork). I used to think it was unusual when a company didnt have all the details of an original contract but now ive come to the conclusion that they dont retain paperwork they dont want to retain.
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Oicuryy
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Re: Vanguard Annuity Transition to Transamerica

Post by Oicuryy »

Just to make sure I am not misreading the table, would someone please tell me what monthly payment you see for a male, age 74, single life, no period certain. Thanks.
Image
https://i.imgur.com/YbVEHf4.jpg

Ron
Money is fungible | Abbreviations and Acronyms
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