How to properly record an IRA account with a Guaranteed Withdrawal Balance.

streetwolf

Ever since I opened up my retirement IRA account I was manually entering in the current price of my IRA which fluctuated based on the Market. There is no download function which is why I just update my holdings in Quicken manually every so often.

After so many years I discovered that I have a Guaranteed Withdrawal Balance (GWB) which is like $100,000.00 higher than what I was entering in Quicken known as Total Death Benefit (TDB). The TDB fluctuates on Market conditions and obviously has taking a beating in the last few months.

So I have a few questions for the experts.

1. Is the GWB what I will draw from when I retire and not the TDB amount?
2. Am I correct that the TDB is what my beneficiary will receive if I die first? A lump sum perhaps or not?
3. While the TDB has gone done in the past few months why hasn't the GWB gone down proportionally?
4. I've always used the TDB to record my holdings in Quicken thinking that was what I would draw upon when I retire. Have I been wrong all these years? Should I change my holdings in Quicken to the value of the GWB?

Any other info on what these two amounts are will be greatly appreciated.

Frankx

HI @streetwolf,

Are you sure that this is an IRA account?  I ask the question because it sounds more like an annuity.  Can you tell us the company, financial institution, or entity that holds your account?

Also, you said that there was "no download function" and that it fluctuated based on the Market" but how were you determining the "current price" to enter in Quicken?

In general a "Total Death Benefit" is typically something that is associated with life insurance policies and also perhaps in certain annuities - and this is actually the amount that would be paid out upon death.  But you also say "The TDB fluctuates on Market conditions" which doesn't make sense to me.

So to try & answer your questions:
1) Yes - I believe this is probably true.
2) Yes - this is what I have seen for some financial products (as discussed above) but this one "fluctuates" which doesn't jive with my experience.
3) I really don't know this answer (as I've indicated above the TDB's I am familiar don't fluctuate with the market).
4) Based on what I've said above - I think you may have been wrong but am not sure.  You say "Should I change my holdings in Quicken to the value of the GWB?" - my question is - are there underlying securities and/or investments/funds that appear on a statement or online account for this GWB?  If so, I would guess that you have probably been wrong to be tracking the TDB and should be tracking the GWB.

Sorry I can't be more definitive. 

Frankx (but I'm no "expert")

Frankx

HI @streetwolf,

Are you sure that this is an IRA account?  I ask the question because it sounds more like an annuity.  Can you tell us the company, financial institution, or entity that holds your account?

Also, you said that there was "no download function" and that it fluctuated based on the Market" but how were you determining the "current price" to enter in Quicken?

In general a "Total Death Benefit" is typically something that is associated with life insurance policies and also perhaps in certain annuities - and this is actually the amount that would be paid out upon death.  But you also say "The TDB fluctuates on Market conditions" which doesn't make sense to me.

So to try & answer your questions:
1) Yes - I believe this is probably true.
2) Yes - this is what I have seen for some financial products (as discussed above) but this one "fluctuates" which doesn't jive with my experience.
3) I really don't know this answer (as I've indicated above the TDB's I am familiar don't fluctuate with the market).
4) Based on what I've said above - I think you may have been wrong but am not sure.  You say "Should I change my holdings in Quicken to the value of the GWB?" - my question is - are there underlying securities and/or investments/funds that appear on a statement or online account for this GWB?  If so, I would guess that you have probably been wrong to be tracking the TDB and should be tracking the GWB.

Sorry I can't be more definitive. 

Frankx (but I'm no "expert")

streetwolf

It's labeled as Annuity Type: IRA

streetwolf

It appears the GWB is what I should enter in Quicken according to the guy who manages my account. Evidently I picked the right kind of IRA for retirement. I was told the GWB and TDB don't have a relationship. However if the TDB falls under $1.00 I think I'm screwed.

So I deleted the account from Quicken and created a new traditional IRA account with no ticket symbols since they are only for TDB and we all plan to live forever 😷. If the GWB amount changes I will just update it accordingly.

I should have taken some finance course when I was in college many moons ago.

Frankx

Yes - as I mentioned above - I think the GWB is what you should be tracking.

Good luck with that "plan" - I am just hoping I live long enough to be able to golf again!!

Take care & stay safe!

Frankx