Episode 43: Reviewing Athene Performance Elite and Elite Plus Annuities

Athene Performance Elite and Elite Plus

Have you been recommended the Athene Performance Elite or Performance Elite Plus? These are very popular annuity products that are promoted to the people I speak with on a weekly basis. That’s why I’m doing a review on this suite of annuities.

First, There’s No Bad Annuity Product, Just Bad Recommendations

When it comes to annuities, there really are no “bad” products. The important thing is whether the product fits your specific needs. The Athene Performance Elite and Performance Elite Plus are totally fine products, but you need to know what their purpose is before deciding if they are right for you.

Annuities are designed to serve a specific purpose, like:

• • Growth and protection

• • Income

We’ll dive deeper into what these annuities do in the next sections.

Performance Elite and Performance Elite Plus: A Breakdown

The Athene Performance Elite and Performance Elite Plus come in three options:

• • 7-year term

• • 10-year term

• • 15-year term

Here’s a quick comparison:

Term	Bonus	Fee	Penalty-Free Withdrawal
Elite 7	None	None	10% in Year 1
Elite 10	Yes	None	5% in Year 2
Elite 15	Yes (larger)	None	5% in Year 2

The key difference between these options is how long you’re committed to the annuity and whether you receive a bonus upfront.

Understanding Withdrawal Terms and Bonuses

One important thing to consider is how much you can withdraw without a penalty and when you can do it. For example, with the Performance Elite 7, you can withdraw 10% of your funds in the first year without any fees. However, with the 10-year and 15-year terms, you can only withdraw 5% starting in Year 2.

The reason for this difference is that the 10-year and 15-year options give you a bonus upfront, and the company has to balance that by limiting how much you can take out early on. There are no “deals” in the insurance industry.  Everything is based on math!

Exploring the Performance Elite Plus: Bonuses and Fees

The Performance Elite Plus is similar to the regular Performance Elite, but with a few key differences:

• • Bonus: The Elite Plus comes with a larger bonus.

• • Fee: There is an annual fee of 0.95%.

• • Additional Features:
    • • Enhanced withdrawal: You can take out 20% if you didn’t make a withdrawal the previous year.
    • • Return of premium: After four years, you can walk away with at least the amount you originally put in, minus any withdrawals, fees, MVA, or taxes.

Term	Bonus	Fee	Enhanced Withdrawal	Return of Premium
Elite 7	Yes	0.95%	20% if no withdrawal last year	Yes, after 4 years
Elite 10	Enhanced bonus	0.95%	20% if no withdrawal last year	Yes, after 4 years
Elite 15	Enhanced bonus	0.95%	20% if no withdrawal last year	Yes, after 4 years

Market Value Adjustments and Their Impact

One feature that confuses a lot of people is the Market Value Adjustment (MVA). This adjustment is tied to how interest rates change over time and affects what happens if you take your money out early.

Here’s a simple explanation:

• • If interest rates go up: The bonds backing your annuity are worth less, so you may get less if you withdraw early.

• • If interest rates go down: The bonds are worth more, and you could get more if you withdraw early.

The good news is that this only applies if you decide to completely surrender (or cancel) the entire annuity early. If the annuity is right for you and you hold it for the full term, you don’t have to worry about this adjustment.

Real-World Expectations for Growth and Fees

When it comes to growth annuities like these, you should expect a growth rate of around 4% to 7% over the term. However, that doesn’t mean you’ll get 4% to 7% every single year. In some years, you might see 0% or a small return. In other years, you might see a big return like 14% or more.

If you opt for extra features, like the enhanced crediting strategy, you could see bigger growth but would also pay more in fees. Keep in mind, that if you don’t have any growth in a given year, those fees can actually cause your account value to go backward.

Final Thoughts on Growth Annuities vs. Income Annuities

So, what’s the difference between growth annuities and income annuities? Growth annuities, like the Athene Performance Elite and Elite Plus, are great for protecting your money and earning steady growth over time. But if your goal is to create a guaranteed income for retirement, these aren’t the best options.

For income, you’re better off looking at an annuity with an income rider. This guarantees you a specific amount of money each year for the rest of your life.

Conclusion: What’s the Purpose of Your Money?

When choosing an annuity, the most important question to ask is: What do I want my money to do? Whether you’re looking for steady growth or a source of income, defining the purpose of your money will help you choose the right product.

If you’d like more personalized help with your annuity options, make sure to schedule an appointment on my calendar and we’ll look at your specific situation together.

Podcast Episode 43: Reviewing Athene Performance Elite and Elite Plus Annuities

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