Purchasing MYGAs (multi year guaranteed annuities) - mega thread

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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by Stinky »

SpaceCowboy wrote: Mon May 10, 2021 1:45 pm Stan the Annuity Man posts Comdex ratings for insurance companies.
Thank you for the additional information. I’ll edit my post above.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by tj »

Stinky wrote: Mon May 10, 2021 1:03 pm There are several other annuity agents mentioned in posts upthread, including Annuity Advantage and Stan The Annuity Man . I've looked at the websites for each, and wanted to compare them to Blueprint Income.

Both firms carry products from a wide range of insurance companies. However, not all insurance companies that are shown on one of the websites are shown on all three.

Annuity Advantage (www.annuityadvantage.com)
--- The website shows a summary of all products available through this agent in your state. It allows you to click through to the specific product that you're looking at.
--- After clicking through to a certain product, there is summary information on each product's policy provisions. The information is less detailed than the policy provision information available through Blueprint.
--- The site shows ratings from all rating agencies, rather than just AM Best as shown on the Blueprint site.
--- The website does not allow you to apply on-line, a feature that is available on Blueprint.

Stan The Annuity Man (www.stantheannuityman.com)
--- The website is somewhat rudimentary. In particular, Stan's website does not display the length of the guarantee period if you choose to display "all" products available through this agent in your state.
--- There is no product-level information available in either a summary or detail form, another short-coming compared to the other sites. In other words, you can't "click through" to a specific product.
--- AM Best and Comdex ratings only.
--- No ability to apply on-line.

My Summary
If you're a person who feels comfortable with researching MYGAs online, the agent to start with is Blueprint Income. In my opinion, their website is the most complete, and allows on-line applications. The Annuity Advantage website is second, and Stan The Annuity Man's website is a weak third.

After you've looked at Blueprint, check the other websites to see if there are attractive products offered there that don't show up on Blueprint. I've found that the interest rates for a certain company/product are the same on all of the websites, but the selection of companies shown on the websites does vary somewhat by agency.

If you choose to work with an annuity seller on the phone, I don't have an opinion to offer. All three of these companies have received positive comments on their customer service upthread. I believe that only Blueprint enables you to interact totally online and through email (I've done it).
What about immediateannuities.com?
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by Stinky »

tj wrote: Mon May 10, 2021 4:55 pm What about immediateannuities.com?
I didn’t recall that site being mentioned until today in this thread. But I could be wrong. :oops:

I’ve looked at www.immediateannuities.com. They sell a variety of annuity products, including MYGAs. Similar to the other three annuity agent websites, they sell MYGAs from a number of companies. I would rate their website as better than Stan’s and a little less helpful than Annuity Advantage. They do not offer online applications.

As of the current time, I believe that Blueprint Income offers the best, most functional website for exploring and purchasing MYGAs.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by SlowPoke »

I've been mulling over putting some fixed income into MYGAs. At first I was attracted to the Canvas 3 yr rate, it was 2.75, I dilly dallied and now its 2.6.
However, as the topic is maturing a bit, I see maybe the new B++ company isn't the safest way to go. I flipped the other way, Mass Mutual at 1.7% is A++/ comdex 98. Finally, I find myself looking towards the middle and find Oceanview at 2.25 with an A- rating.
I see some on this thread have bought Oceanview, some Canvas. Any more thoughts after the purchase of either of these?
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by EvelynTroy »

SlowPoke wrote: Wed May 19, 2021 4:09 pm I've been mulling over putting some fixed income into MYGAs. At first I was attracted to the Canvas 3 yr rate, it was 2.75, I dilly dallied and now its 2.6.
However, as the topic is maturing a bit, I see maybe the new B++ company isn't the safest way to go. I flipped the other way, Mass Mutual at 1.7% is A++/ comdex 98. Finally, I find myself looking towards the middle and find Oceanview at 2.25 with an A- rating.
I see some on this thread have bought Oceanview, some Canvas. Any more thoughts after the purchase of either of these?
SlowPoke, I'm no expert, but I did purchase four MYGA's in the last several months.
3 using BluePrint Income - definitely agree with Stinky the website is the best I've run across in regard to organization, seeing what you need to see on one page, and being able, at least for me to figure out the sweet-spot for the month's offerings.
1 from Canvas.
Both firms the process was smooth, questions answered promptly, and no concerns with purchasing again from either firm.

For May it seems to me the Oceanview 2.25%, A- rating for 3 years is the sweet-spot for 3 year offerings. Question you have to decide do you want the extra safety of an A- rating, and forego a small amount of interest as compared to Canvas' 2.6% Each of us is different in their priorities. Also if you may be purchasing additional MYGAs over time you can ladder the choices combining rating and duration of the MYGA.

Evelyn
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by SlowPoke »

EvelynTroy wrote: Wed May 19, 2021 4:40 pm For May it seems to me the Oceanview 2.25%, A- rating for 3 years is the sweet-spot for 3 year offerings.
Evelyn
Thanks for that Evelyn, I read through your MYGA posts earlier and learned a lot from them. So far, I am seeing that as the middle of the road sweet spot too... and I am speaking with Blueprint as well.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by EvelynTroy »

SlowPoke wrote: Wed May 19, 2021 4:48 pm
EvelynTroy wrote: Wed May 19, 2021 4:40 pm For May it seems to me the Oceanview 2.25%, A- rating for 3 years is the sweet-spot for 3 year offerings.
Evelyn
Thanks for that Evelyn, I read through your MYGA posts earlier and learned a lot from them. So far, I am seeing that as the middle of the road sweet spot too... and I am speaking with Blueprint as well.
You're welcome SlowPoke. I know what you mean about "mulling" - I was exactly this way with the MYGAS.
I liked FDIC insured bank/credit union CD's that I could often find nice interest rate ones on a promotion for a large portion of my fixed income allocation. Some of these were maturing when rates had fallen so drastically. I finally came to the conclusion for me that I wasn't chasing yield, but rather staying true to my allocation of fixed income by using another kind of safe instrument (the ratings and the state guarantee), and was comfortable giving up the FDIC insurance. After considerable reading and the discussions here I felt like I understood what I was buying.

Evelyn
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by bulbs »

I love this blog! My wife and I own fixed annuity contracts with 38 different insurance companies, and am constantly searching for more. I discovered Gainbridge and Puritan Canvas this year, and see that they have reviews on this site. Does anyone else know of other decent interest paying direct-sell annuity offerings? :beer
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by Stinky »

SlowPoke wrote: Wed May 19, 2021 4:09 pm I've been mulling over putting some fixed income into MYGAs. At first I was attracted to the Canvas 3 yr rate, it was 2.75, I dilly dallied and now its 2.6.
However, as the topic is maturing a bit, I see maybe the new B++ company isn't the safest way to go. I flipped the other way, Mass Mutual at 1.7% is A++/ comdex 98. Finally, I find myself looking towards the middle and find Oceanview at 2.25 with an A- rating.
I see some on this thread have bought Oceanview, some Canvas. Any more thoughts after the purchase of either of these?
I’ve purchased from both Oceanview and Puritan (the insurance company behind Canvas). Personally, I’d feel good with a 3 year MYGA from either company, since the term is so short. Of course, I’d keep the amount below your state guaranty fund limit.

You could purchase from Mass Mutual, which has extremely strong ratings. I’d be looking for very strong ratings if I was purchasing a SPIA which has a tail of 20 years or more. However, I don’t feel the need for such strong ratings in a 3 year MYGA.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by SlowPoke »

Stinky wrote: Wed May 19, 2021 7:58 pm I’ve purchased from both Oceanview and Puritan (the insurance company behind Canvas). Personally, I’d feel good with a 3 year MYGA from either company, since the term is so short. Of course, I’d keep the amount below your state guaranty fund limit.
Thanks Stinky, I learned a lot from your earlier info on this thread, a big help getting up to speed.
So, I just have to make the final decision between these 2 risk/reward propositions - So, I'm almost done! I am sold on these as CD replacements.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by EvelynTroy »

bulbs wrote: Wed May 19, 2021 7:19 pm I love this blog! My wife and I own fixed annuity contracts with 38 different insurance companies, and am constantly searching for more. I discovered Gainbridge and Puritan Canvas this year, and see that they have reviews on this site. Does anyone else know of other decent interest paying direct-sell annuity offerings? :beer
I love this forum too Bulbs for a lot of reasons.
I am fairly recent owner of MYGA's. I don't know much about direct-selling offerings from the insurance companies themselves.

You could if for some reason you don't want to deal with with one of the broker-type/agent annuity providers - like
https://www.blueprintincome.com/fixed-annuities
Use this reference to input your criteria and the state your reside in, you will have a whole list of companies - sort them by any of the criteria in the top row - then read the "DETAILS" blue button. You see one or more that suits you - you could then contact that provider directly.

That said, it doesn't cost you anything to purchase the MYGA directly from blueprint income, or any other agent. The commission blueprint earns is already baked into the rates. I did check blueprint income once, a couple of offerings with the insurance company directly - rates and details the same. I saw no advantage to dealing directly with the insurance company. If I'm wrong on this I would appreciate being corrected. Thanks.

Evelyn
PS - Bulbs, I used Blueprint Income as an example because I believe it is easiest to navigate, and provides more information in easy to understand presentation that other firms I've looked at. Also please review the first post of this discussion, where Stinky provides a wonderful comparison of the agents.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by Stinky »

EvelynTroy wrote: Thu May 20, 2021 9:13 am I did check blueprint income once, a couple of offerings with the insurance company directly - rates and details the same. I saw no advantage to dealing directly with the insurance company. If I'm wrong on this I would appreciate being corrected.
There is just one exception I’ve found to the statement that “the credited rates from a company are the same no matter where you look”.

Guggenheim Life is the insurance company behind Gainbridge. Guggenheim also has products available on Stan the Annuity Man’s site. I’ve found that the credited rates for Guggenheim are higher if you buy direct through Gainbridge rather than through Stan. (Note that products from Guggenheim are not available on Blueprint Income.)

Otherwise, I haven’t seen a situation where credited rates are different depending on where you buy.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by EvelynTroy »

Stinky wrote: Thu May 20, 2021 9:33 am
EvelynTroy wrote: Thu May 20, 2021 9:13 am I did check blueprint income once, a couple of offerings with the insurance company directly - rates and details the same. I saw no advantage to dealing directly with the insurance company. If I'm wrong on this I would appreciate being corrected.
There is just one exception I’ve found to the statement that “the credited rates from a company are the same no matter where you look”.

Guggenheim Life is the insurance company behind Gainbridge. Guggenheim also has products available on Stan the Annuity Man’s site. I’ve found that the credited rates for Guggenheim are higher if you buy direct through Gainbridge rather than through Stan. (Note that products from Guggenheim are not available on Blueprint Income.)

Otherwise, I haven’t seen a situation where credited rates are different depending on where you buy.
Thanks, appreciate the correction and the noted exception.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by rich126 »

bulbs wrote: Wed May 19, 2021 7:19 pm I love this blog! My wife and I own fixed annuity contracts with 38 different insurance companies, and am constantly searching for more. I discovered Gainbridge and Puritan Canvas this year, and see that they have reviews on this site. Does anyone else know of other decent interest paying direct-sell annuity offerings? :beer
38 different insurance companies?

I have no idea how I would be able to track all of that. Seems like a huge headache.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

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38 different companies?

Good gosh! How big a file cabinet do you have?

Hopefully you stay within state insurance association’s guarantee limit.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by bulbs »

A spreadsheet does a good job of tracking everything. In 2019, we purchased a 15yr Upstream Annuity which paid 7% first year and 4.75% for years 2-15, simple interest, with free interest withdrawals. When the interest accumulation gets to $5000, we 1035 the interest to Sentinel, which has only a $2500 minimum. This way, the interest is effectively compounded, and the tax is deferred. Obviously, it would be financially prudent if we did the transfers at $2500, but it would be a lot of work for a small commission for our producer.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

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bulbs wrote: Thu May 20, 2021 11:16 am A spreadsheet does a good job of tracking everything. In 2019, we purchased a 15yr Upstream Annuity which paid 7% first year and 4.75% for years 2-15, simple interest, with free interest withdrawals. When the interest accumulation gets to $5000, we 1035 the interest to Sentinel, which has only a $2500 minimum. This way, the interest is effectively compounded, and the tax is deferred. Obviously, it would be financially prudent if we did the transfers at $2500, but it would be a lot of work for a small commission for our producer.
That sounds like a really smart way of handling your situation.

I’ll bet that you’re loving making 4.75%, guaranteed until 2034. That’s a REALLY attractive rate!

And welcome to the Forum! Glad that you posted.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by JSparks »

I recently got in touch with one particular company to set up a MYGA through Sagicore. Having gone through a fair amount of the process with them (answered the suitability questions and got the forms), I started getting uncomfortable with the quality of their responses to my questions. I'd rather get the same Sagicore MYGA through a different company now. Here is my question...

Will this even be allowed since I've started the process already with a different Sagicore MYGA broker?
Perhaps I'll just have to sign a broker of record change letter. Any thoughts?
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

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JSparks wrote: Mon May 24, 2021 6:45 pm I recently got in touch with one particular company to set up a MYGA through Sagicore. Having gone through a fair amount of the process with them (answered the suitability questions and got the forms), I started getting uncomfortable with the quality of their responses to my questions. I'd rather get the same Sagicore MYGA through a different company now. Here is my question...

Will this even be allowed since I've started the process already with a different Sagicore MYGA broker?
Perhaps I'll just have to sign a broker of record change letter. Any thoughts?
Have you sent in a check or completed a transfer form? If you have, then the MYGA is likely in process of being issued.

Presuming that you haven’t funded it yet, I would think that you could restart the process with another agent. I’d probably mention to the new agent that you had started the process with another agent, in case questions arise. But I wouldn’t expect that to be a problem.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

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Thanks. No check or transfer. We'll find out if there is any problem today when I call the other broker.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

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JSparks wrote: Tue May 25, 2021 8:18 am Thanks. No check or transfer. We'll find out if there is any problem today when I call the other broker.
Please let us know what you find out when you call the other broker.

If you didn't submit any money, I'm thinking that the first broker hadn't sent any paperwork off to the insurance company. That's why I don't think that there will be any problem, because nobody except the first broker knows that you started the application process.

When you report back, we'll be able to see if my supposition is correct.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

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Stinky wrote: Tue May 25, 2021 8:52 am
JSparks wrote: Tue May 25, 2021 8:18 am Thanks. No check or transfer. We'll find out if there is any problem today when I call the other broker.
Please let us know what you find out when you call the other broker.

If you didn't submit any money, I'm thinking that the first broker hadn't sent any paperwork off to the insurance company. That's why I don't think that there will be any problem, because nobody except the first broker knows that you started the application process.

When you report back, we'll be able to see if my supposition is correct.
Reporting back...
It does not appear there will be any issue going with the alternate broker since I've not sent any signed documents to the first broker. Though I was really surprised that the alternate broker had never heard of Bogleheads. I never asked the original broker if he/she had heard of the BH forum, but it's irrelevant anyhow.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

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JSparks wrote: Wed May 26, 2021 11:13 am
Reporting back...
It does not appear there will be any issue going with the alternate broker since I've not sent any signed documents to the first broker. Though I was really surprised that the broker had never heard of Bogleheads.
It looks like Sagicore just bumped up their rates on 3 and 5 year contracts.

Their 5 year rate is now 3.00%. That’s pretty strong for an A- company.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

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Stinky wrote: Wed May 26, 2021 11:20 am It looks like Sagicore just bumped up their rates on 3 and 5 year contracts.
Their 5 year rate is now 3.00%. That’s pretty strong for an A- company.
Where can I find that revised rate?
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by Escapevelocity »

JSparks wrote: Wed May 26, 2021 11:27 am
Stinky wrote: Wed May 26, 2021 11:20 am It looks like Sagicore just bumped up their rates on 3 and 5 year contracts.
Their 5 year rate is now 3.00%. That’s pretty strong for an A- company.
Where can I find that revised rate?
https://www.annuityadvantage.com/annuit ... s-summary/
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

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JSparks wrote: Wed May 26, 2021 11:27 am
Stinky wrote: Wed May 26, 2021 11:20 am It looks like Sagicore just bumped up their rates on 3 and 5 year contracts.
Their 5 year rate is now 3.00%. That’s pretty strong for an A- company.
Where can I find that revised rate?
My go-to site is blueprintincome.com
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

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Upstream Life, which is a company whose MYGA products are available in a limited number of states, has had its AM Best rating downgraded from B++ to B+, a one notch downgrade. Additionally, its ratings were put on “negative watch”. The press release follows:

https://www.businesswire.com/news/home/ ... plications

The language in the press release sounds to me like Upstream had a fairly major failure in its enterprise risk management function, which led to a significant decrease in its capital adequacy ratios.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Stinky »

I’ve edited the title of this thread to better reflect its content, which is an overall discussion of MYGAs.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by bulbs »

Elco Mutual, a B rated company that I have never seen advertised on the popular websites, offers fixed annuities in denominations of 1 to 10 years. Five years ago, I purchased a 1-year annuity. When the year was up, I split my investment into two 5-year and 10-year Elco annuities, deferring the interest. Elco allows for 15% free withdrawals annually, which I 1035ed the withdrawals to other higher paying annuities, deferring the interest. This week, I will 1035 my 5-year to another annuity, again deferring the interest. I hope this helps other annuity investors, as 1 and 2-year annuities are very rare. :sharebeer
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by rich126 »

Like many here I ended up buying a couple of 3 yr MYGA that will mature when I am 60 and 61. While my plan is still fluid, the initial idea is to have that "safe" money as a bridge from when I retire (maybe 60 or 61 or 62) until I collect social security (65-70 depending on health, needs, economy, etc.). They were both from A- companies I believe and in the upper 2% rates and within state insurance limits).

Not exactly a big return but I think it was a solid decision and with that money and my pension at 60, I could probably survive on those funds until 65 w/o withdrawing anything from my core investment account. Depending on how taxes work, I will adjust the withdrawals so that it makes sense tax wise but it is nice to know I have a pretty decent plan not to worry about things until social security kicks in. My only concern now is waiting for real estate to start leveling off since I refuse to bid on properties.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

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bulbs wrote: Mon May 31, 2021 10:56 am Elco Mutual, a B rated company that I have never seen advertised on the popular websites, offers fixed annuities in denominations of 1 to 10 years. Five years ago, I purchased a 1-year annuity. When the year was up, I split my investment into two 5-year and 10-year Elco annuities, deferring the interest. Elco allows for 15% free withdrawals annually, which I 1035ed the withdrawals to other higher paying annuities, deferring the interest. This week, I will 1035 my 5-year to another annuity, again deferring the interest. I hope this helps other annuity investors, as 1 and 2-year annuities are very rare. :sharebeer
Very interesting. Thanks for sharing. I don’t think that the sites mentioned above have carriers rated as low as B by AM Best, so I hadn’t heard of this company before. The same guaranty fund protection would apply to this company as to any other company.

I went to the company’s website. They are offering a one year MYGA at 1.25% and a 2 year at 1.75%. I don’t recall seeing a 1 year product anywhere else.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Wrench »

Stinky wrote: Mon May 31, 2021 2:20 pm
bulbs wrote: Mon May 31, 2021 10:56 am Elco Mutual, a B rated company that I have never seen advertised on the popular websites, offers fixed annuities in denominations of 1 to 10 years. Five years ago, I purchased a 1-year annuity. When the year was up, I split my investment into two 5-year and 10-year Elco annuities, deferring the interest. Elco allows for 15% free withdrawals annually, which I 1035ed the withdrawals to other higher paying annuities, deferring the interest. This week, I will 1035 my 5-year to another annuity, again deferring the interest. I hope this helps other annuity investors, as 1 and 2-year annuities are very rare. :sharebeer
Very interesting. Thanks for sharing. I don’t think that the sites mentioned above have carriers rated as low as B by AM Best, so I hadn’t heard of this company before. The same guaranty fund protection would apply to this company as to any other company.

I went to the company’s website. They are offering a one year MYGA at 1.25% and a 2 year at 1.75%. I don’t recall seeing a 1 year product anywhere else.
I note in the 1 year MYGA at Elco that it is only available to age 90. Is this typical of MYGAs? I ask because my FIL is 91 and MIL is 88. Their son may soon take over their investments (he has POA) and I have suggested he consider MYGAs. But if age 90 is limit on most (all?) MYGAs, probably will not work, at least not for long...

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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by HueyLD »

Wrench wrote: Mon May 31, 2021 3:03 pmI note in the 1 year MYGA at Elco that it is only available to age 90. Is this typical of MYGAs? I ask because my FIL is 91 and MIL is 88. Their son may soon take over their investments (he has POA) and I have suggested he consider MYGAs. But if age 90 is limit on most (all?) MYGAs, probably will not work, at least not for long...

Wrench
The maximum age for purchase varies by company. The companies I reviewed show maximum ages between 85 and 90.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Stinky »

HueyLD wrote: Mon May 31, 2021 3:53 pm
Wrench wrote: Mon May 31, 2021 3:03 pmI note in the 1 year MYGA at Elco that it is only available to age 90. Is this typical of MYGAs? I ask because my FIL is 91 and MIL is 88. Their son may soon take over their investments (he has POA) and I have suggested he consider MYGAs. But if age 90 is limit on most (all?) MYGAs, probably will not work, at least not for long...

Wrench
The maximum age for purchase varies by company. The companies I reviewed show maximum ages between 85 and 90.
Looking at Blueprint Income, none of the 2 year MYGAs available in my state can be issued to a 91 year old.

Looking at 3 year products, I found that The Standard will issue to age 93, and Guaranty Income will go to age 100. Most other companies only go to 85 or 90, and some are as low as 75.

The Blueprint site has maximum issue ages for all products. I don’t know if other sites show that information.
Retired life insurance company financial executive who sincerely believes that ”It’s a GREAT day to be alive!”
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by bulbs »

To Wrench: We recently had the same issues with my in-laws as they are 86 and 90. We designated the owner to be the younger one, and the older the beneficiary.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Hebell »

I've used Stan for two A+ rated 3-year jumbo Florida MYGAs bought about a half year apart. The turnaround from my request to getting the paperwork into this insurer has been one day both times. And then the money is pulled directly from my credit union checking account two to three days later. The policy then follows by UPS today mail. For convenience, the information on my first purchase carried into my second purchase, which made it easier.

I almost always go with websites where I do everything online myself, but the speed has been so fast with Stan and his staff that I have no reason to change. In fact he's the only vendor I think I do business with, that has this degree of personal service, in this day and age!

Emails I send in the evening get answered by the next morning. And there's an online appointment schedule for phone calls. So thus far, I'm very satisfied
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Clammypollack »

I want to buy some MYGAs. Looking at Immediate Annuities. What are some things to look for/ask about before pulling the trigger?
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by tj »

Clammypollack wrote: Mon May 31, 2021 9:46 pm I want to buy some MYGAs. Looking at Immediate Annuities. What are some things to look for/ask about before pulling the trigger?
Did you read the past 4 pages that discussed all of this?
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Stinky »

Clammypollack wrote: Mon May 31, 2021 9:46 pm I want to buy some MYGAs. Looking at Immediate Annuities. What are some things to look for/ask about before pulling the trigger?
Here’s some excellent educational material for you to read:
https://www.blueprintincome.com/resourc ... annuities/

Once you’ve looked at that, look at some specific products on the Blueprint Income site. Just picking at random, why don’t you look at a five year MYGA from New York Life:
https://www.blueprintincome.com/fixed-a ... term-mva-5

Then, ask some more specific questions.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Clammypollack »

tj wrote: Mon May 31, 2021 10:20 pm
Clammypollack wrote: Mon May 31, 2021 9:46 pm I want to buy some MYGAs. Looking at Immediate Annuities. What are some things to look for/ask about before pulling the trigger?
Did you read the past 4 pages that discussed all of this?
Yes, I did.
The last four pages were very informative and educational regarding MYGA’s. I am grateful to those who shared this info. Has it occurred to you that there’s a big difference between reading a significant amount of information on a subject and asking what specific questions a veteran in this area would suggest that a novice ask a seller of the product?
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Stinky »

Clammypollack wrote: Thu Jun 03, 2021 2:34 pm
The last four pages were very informative and educational regarding MYGA’s. I am grateful to those who shared this info. Has it occurred to you that there’s a big difference between reading a significant amount of information on a subject and asking what specific questions a veteran in this area would suggest that a novice ask a seller of the product?
Let me suggest some questions for you.

1. Are you confident that you will be able to leave the funds deposited for the entire term of the MYGA? If you make withdrawals from the contract in excess of those permitted (if any), you will be subject to punishing surrender charges.

2. Do you understand guaranty funds, and know what the guaranty fund limits are for your state? You can go to https://www.nolhga.com/ for general guaranty fund info, and then click through on your state website. Make sure you read the FAQs for your state.

3. Do you understand the withdrawal provisions and death benefit provisions of the products that you're looking at? Some contracts allow a 10% annual withdrawal without surrender charges, and pay out the full account value at death while the contract is in force. Others do not allow any withdrawals until the contract is over without surrender charge, and pay out only the surrender value at death.

4. If you're buying in a taxable account, do you plan to make no withdrawals prior to age 59.5? If you do withdraw prior to that age, you'll be assessed a 10% tax penalty on the interest withdrawn, plus incurring regular taxable income.

5. Have you looked at the rating of the insurance company you're considering? In general, higher-rated companies pay a lower rate of interest than those with lower ratings.

Others can chime in with their questions.
Retired life insurance company financial executive who sincerely believes that ”It’s a GREAT day to be alive!”
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by EvelynTroy »

Stinky, Your reply to the poster was brilliant - I loved the turning the "question" into questions. Not to mention a very nice reference for future MYGA purchases - a sort of check-list to ask yourself so you are confident you know what you are buying.
Thank you Stinky for sharing your expertise so freely. It is much appreciated.
Evelyn
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by bulbs »

We cannot always trust the Blueprint website. It states the death benefit for Sentinel and Atlantic Coast fixed annuities, "Should you pass away before the end of your contract, your beneficiary has the option to receive the cash surrender value as a lump sum or the full account value in annual payments over a 5 year period." This is not true, according to my contracts with Sentinel and their account rep. Unless you additionally purchase a Death Benefit Rider, even if your beneficiary chooses the five year payout, you are stuck with the surrender value less the market value adjustment. The beneficiary is in no way entitled to the full account value. Of course, if the beneficiary is your spouse, he or she may receive the full account value if he continues the contract to the end of the guarantee period. :sharebeer
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Clammypollack »

Stinky wrote: Thu Jun 03, 2021 4:11 pm
Clammypollack wrote: Thu Jun 03, 2021 2:34 pm
The last four pages were very informative and educational regarding MYGA’s. I am grateful to those who shared this info. Has it occurred to you that there’s a big difference between reading a significant amount of information on a subject and asking what specific questions a veteran in this area would suggest that a novice ask a seller of the product?
Let me suggest some questions for you.

1. Are you confident that you will be able to leave the funds deposited for the entire term of the MYGA? If you make withdrawals from the contract in excess of those permitted (if any), you will be subject to punishing surrender charges.

2. Do you understand guaranty funds, and know what the guaranty fund limits are for your state? You can go to https://www.nolhga.com/ for general guaranty fund info, and then click through on your state website. Make sure you read the FAQs for your state.

3. Do you understand the withdrawal provisions and death benefit provisions of the products that you're looking at? Some contracts allow a 10% annual withdrawal without surrender charges, and pay out the full account value at death while the contract is in force. Others do not allow any withdrawals until the contract is over without surrender charge, and pay out only the surrender value at death.

4. If you're buying in a taxable account, do you plan to make no withdrawals prior to age 59.5? If you do withdraw prior to that age, you'll be assessed a 10% tax penalty on the interest withdrawn, plus incurring regular taxable income.

5. Have you looked at the rating of the insurance company you're considering? In general, higher-rated companies pay a lower rate of interest than those with lower ratings.

Others can chime in with their questions.
Thank you! This is much appreciated.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by HueyLD »

bulbs wrote: Thu Jun 03, 2021 9:01 pm We cannot always trust the Blueprint website. It states the death benefit for Sentinel and Atlantic Coast fixed annuities, "Should you pass away before the end of your contract, your beneficiary has the option to receive the cash surrender value as a lump sum or the full account value in annual payments over a 5 year period." This is not true, according to my contracts with Sentinel and their account rep. Unless you additionally purchase a Death Benefit Rider, even if your beneficiary chooses the five year payout, you are stuck with the surrender value less the market value adjustment. The beneficiary is in no way entitled to the full account value. Of course, if the beneficiary is your spouse, he or she may receive the full account value if he continues the contract to the end of the guarantee period.
I found the following verbiage instead:

“Death Benefit Provisions:

Should you pass away before the end of your contract, the surrender value of the annuity, including interest, will be passed to your beneficiary. If the beneficiary is your spouse, he/she can take the accumulated value without surrender charges at the time of death. If the beneficiary is someone other than your spouse, he/she will be able to hold the contract to maturity and then take the accumulated value without surrender charges. An optional Death Benefit rider can be added to allow any beneficiary to take the accumulated value at the time of death without surrender charges.”

https://www.blueprintincome.com/fixed-a ... AZ&terms=5
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by bulbs »

I love Blueprintincome's website. It provides the most thorough and up to date MYGA annuity information on the web. Yesterday I posted on this blog, an incorrect Death Benefit quote that I had copied and pasted from their website. Within a couple hours, their website was corrected. Blueprint is not perfect, but they do thrive to put out the most complete information in regard to every detail that an average investor would need to know. The fact that they are monitoring this blog is a very good thing.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by HueyLD »

It is nice to know that blueprintincome.com monitors and corrects their mistakes.

I think a little bird told them about the BH site. :-)
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by bulbs »

HueyLD, I think that Blueprint's Sentinel correction is still not accurate. BPIs statement: "If the beneficiary is someone other than your spouse, he/she will be able to hold the contract to maturity and then take the accumulated value without surrender charges." I do not see anything in my contract with Sentinel that would allow someone other than my spouse to take the accumulated value without Surrender Charge. Too, Sentinel's account representative confirmed to me that no one other than my spouse is entitled to hold my contract to maturity and then take the accumulated value without surrender charges.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by HueyLD »

Bulbs,

Would you post what the actual contract says about non-spouse beneficiary inheriting the contract?

I am seriously curious.

Thanks.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by bulbs »

Here is Sentinel's Death Benefit section of my "Personal Choice Annuity" contract in it's entirety:

DEATH PAY-OUT PROVISIONS

Annuitant's Death-- The Death Proceeds payable equal the Cash Surrender Value on the Annuitant's date of death. If the Annuitant and Owner are the same We pay out the entire Death Proceeds in a lump sum unless:
1) It is payable to the Beneficiary over a 5 year period. Entire Death Proceeds must be paid within 5 years;
2) The designated Beneficiary is the Owner's spouse and he or she continues the Contract in his or her name as the new Owner.

Owner's Death-- The Death Proceeds payable equal the Cash Surrender Value on the Owner's date of death. If the Owner, who is not the Annuitant, dies before maturity date, We pay Death Proceeds to the Owner's Beneficiary.
We pay out the entire Death Proceeds in a lump sum unless:
1) It is payable to the beneficiary over a 5 year period. Entire Death Proceeds must be paid within 5 years;
2) The designated Beneficiary is the Owner's spouse and he or she continues the Contract in his or her name as new Owner.

INTEREST ON DEATH BENEFIT
We pay Interest on the Death Proceeds as described in Payment of Proceeds section.

BENEFICIARY
You named the Beneficiary in the Application. While the Annuitant is alive, you may chance the Beneficiary by Notifying Us. A change will take effect on the dated We receive Notice. Any change is subject to payment or other action We take before receiving Notice.
Unless You Notify Us otherwise, these rules apply:
1) If You name more than one Beneficiary, and any one Beneficiary dies before the Annuitant, We pay the Death Proceeds to any surviving Beneficiary(ies).
2) If any Beneficiary dies within 30 days of the Annuitant and We receive Notice of the Death before We pay the Death Proceeds, We pay it as if the Beneficiary died before the Annuitant.
3) If You have not named a Beneficiary when the Annuitant dies, We pay the Death Proceeds to the Annuitant's estate.
4) If no named Beneficiary is alive when the Annuitant dies, We pay the Death Proceeds to the Annuitant's estate.
5) We pay equal amounts when more than one Beneficiary is to share the Death Proceeds, unless specified.
6) When You do not state Beneficiaries by name (such as "children"), We may find who they are from sworn statements and not wait for court records. The word "child" means only a child born to, or adopted by, the Annuitant, it does not mean grandchild or stepchild.
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