Re: Valuing a deferred fixed index annuity

On 07/11/24 6:40 AM, Peter Goergen wrote:
> I am 69 years old, retired for the past year, and one of my IRAs is a 
> Corebridge Financial Power Index 5 single premium deferred fixed index 
> annuity, linked to the S&P 500, MSCI EAFE, and the Russell 500, with an 
> annual 9.5% cap. This 5-year contract just passed its 1-year anniversary.
> 
> I’ve been valuing the account for the past year by applying the daily 
> price history downloaded by Quicken for the S&P 500 and Russell indices. 
> MSCI EAFE doesn’t appear to be downloadable, so I periodically go to the 
> Corebridge website for price updates.
> 
> Since the past year has been a good one for equities, the 9.5% cap was 
> applied to the account, so I’ve been over-valuing it.
> 
> I’d like to adjust the account to better show the value throughout the 
> past year. My initial idea is to delete all the daily prices and 
> substitute (maybe monthly) prices that are 9.5% higher each month.
> 
> Any better ideas?

I know nothing about the characteristics of premium deferred fixed index 
annuities. But based strictly on your problem description, I can think 
of no other basic approach.

But how do you plan to "substitute" the new prices?

Depending on the details of your plan to get new prices into Quicken and 
how many prices (dates) are involved, there MAY be some alternative 
approaches that would require less manual effort.

It sounds like you may only be talking about a year's worth of monthly 
prices, for which there's probably not a better alternative than just 
manually entering the prices into Quicken's price history.