Purchasing MYGAs (multi year guaranteed annuities) - mega thread

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

Post by Hebell »

You are correct I cannot assess the commissions, embedded within the rates, but what I can do is look to see if there's any small difference in rates or any pattern thereof. If I don't see any distinctive pattern between the providers, then I have to assume the internal cost structure is similar. That will at the very least give me peace of mind and tell me that, I can choose my provider based on customer service and their choice of selections in mygas. Which will give me peace of mind :P
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by formerlybroke »

Hebell wrote: Fri Jan 01, 2021 6:11 pm You are correct I cannot assess the commissions, embedded within the rates, but what I can do is look to see if there's any small difference in rates or any pattern thereof. If I don't see any distinctive pattern between the providers, then I have to assume the internal cost structure is similar. That will at the very least give me peace of mind and tell me that, I can choose my provider based on customer service and their choice of selections in mygas. Which will give me peace of mind :P
Piece of mind is of paramount importance, and if your research leads you there that’s awesome.

On a basic product like MYGA, every insurers product is going to have the same basic moving parts as there not a whole lot to navigate around. Surrender charges, free withdrawal options, rate guarantee period, account minimums, etc.

Commissions paid to MGAs, which I’d classify all the providers mentioned above as, will vary based on a host of factors.

I’d spend my time looking at insurer’s ratings (state guarantees not withstanding), then selecting rates versus terms versus surrender charges that meet your needs and expectations commensurate with the company’s ratings.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by Hebell »

I agree. Comdex score, and the factors you mentioned certainly will prevail on picking the myga. My question is, who do I buy it from?

I am envisioning a long 3-year myga ladder. For very long time, for part of my portfolio, that ladder will complement anything else I have laddered, such as bullet shares, 10-year TIPs, EE and I bonds. it's almost like getting married, I'm going to be talking a lot to my annuity broker - I better like him/her.

If I see absolutely no difference, then I guess I'll rely on the preferences of the fellow boglehead readers ;-)
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by Stinky »

formerlybroke wrote: Fri Jan 01, 2021 6:44 pm
I’d spend my time looking at insurer’s ratings (state guarantees not withstanding), then selecting rates versus terms versus surrender charges that meet your needs and expectations commensurate with the company’s ratings.
This is a great summary of things to look at when buying a MYGA.
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Woot!
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by Woot! »

For those considering annuities from Gainsbridge or Canvas, here are AM Best's average historical impairment rates from 1977-2018 for B++ rated insurance companies, which are the ratings for the insurance companies Gainsbridge and Canvas have partnered with:

3-Year - 2.26% of B++ insurance companies became impaired
5-Year - 4.3% of B++ insurance companies became impaired
7-Year - 6.32% of B++ insurance companies became impaired

Everyone must find their own comfort level, but for myself, coming from the Larry Swedroe school, I look for safety on the fixed income side of the ledger even when it means sacrificing some return. Sure, my state's guarantee association coverage provides some comfort, but it's not the same as FDIC/NCUA should there be a black swan that affects multiple insurers.

I'm inclined to follow what a couple of other Bogleheads mentioned in other MYGA threads:

A- or better AM Best rating on a 3-Year MYGA (1.22% historical impairment rate)

A or better AM Best rating on a 5- MYGA (1.45% historical impairment rate)

Plenty of those safer options available at Blueprint Income, Annuity Advantage, and Stan the Annuity Man.
Last edited by Woot! on Fri Jan 01, 2021 8:16 pm, edited 1 time in total.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by Woot! »

Also, for insurance companies that have financial ratings from multiple agencies, thought I'd link this website with information on the rating agencies and their rating systems.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by EvelynTroy »

nalor511 wrote: Thu Dec 31, 2020 7:42 pm Where do you guys rate myga on ease of purchase, and rollover (1035), as compared to direct (not brokered) CDs? Thanks for all the Q&A!
I've recently purchased four MYGAs - 3 from BlueprintIncome and 1 from CanvasAnnuity. I've purchased many direct CDs from CU's and banks. I can't speak about rollovers(1035).

Remembering back when I first purchased CD's from banks/CUs all across the country I was a little anxious, i.e. am I doing this right, don't want to mess up, do I understand the EWP, etc. Or long wait times on the phone to ask questions especially when there was a popular promotion that big numbers of people wanted to get in on. Or some frustration if the website wasn't quite up to speed. Delays in funds actually purchasing the CD.

The same with the MYGAs some little glitches and irritations here and there, nothing game changing. Example, Americo doesn't have an online portal to check balances. It took forever to purchase the 5 yr. 3.20% Americo CD - about two months in total.
On the positive side, even though I didn't have policy in hand I was earning interest from the day my application was approved.

My additional MYGAs were much easier to purchase, and a lot of that was because I was more comfortable with the process as well as more confident in my understanding of the product.

Bottom line for me - MYGAs are now just as easy to purchase for me as a traditional direct CD. Both BluePrint Income and Canvas had very good customer service via the phone, no long hold times, and reps not in a big hurry to move on to the next caller. I also liked at BluePrint there was always more than one person looking over the documents - these companies have a stake in good service, they want to earn their commission over and over with each purchase and renewal you make.

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

Post by capjak »

Based on the years that I researched MYGAs before purchasing all the sites Blueprint/Stan the Annuity Man/Immediate Annuities, Annuity Advantage etc.... have access to the same carriers and the interest rates are the same.

While some internet sites are easier and more detailed than others, when purchasing from stan the annuity man if I did not see a product I wanted I just emailed him or called him and he was always able to get the product at the exact same interest rate.

I think they are basically commodities and the rates to consumer are the same, however the larger sales firm like stan the annuity man (one of the largest) may get a higher commission from some insurance companies than some of the smaller firms.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by CWRadio »

Can someone please explain why when I check rates (3 years at Stantheannuityman) for MYGA for the State of New York all MYGA companies are rated A or greater as compared to the state of Michigan where MYGA companies rating start at B+?. Why does New York state only list MYGA that are rated A or greater?
Thanks Paul
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by Stinky »

CWRadio wrote: Sat Jan 02, 2021 9:45 am Can someone please explain why when I check rates (3 years at Stantheannuityman) for MYGA for the State of New York all MYGA companies are rated A or greater as compared to the state of Michigan where MYGA companies rating start at B+?. Why does New York state only list MYGA that are rated A or greater?
Thanks Paul
As I said upthread, New York State has historically had more conservative insurance regulation than any other state. This “tighter” regulation discouraged many companies from writing business in New York.

Consequently, the vast majority of companies that write in New York are larger and have better ratings. That applies to the MYGA marketplace, as well as others.

The practical effect of this more conservative regulation is that NY consumers have fewer choices for products written by life insurers than consumers in other states.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by Bearcat78 »

First Post,

After establishing a MYGA ladder do you renew the maturing MYGA to your longest term 7 or 10 years to keep you ladder balanced?
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by Stinky »

Bearcat78 wrote: Sun Jan 03, 2021 12:07 pm First Post,

After establishing a MYGA ladder do you renew the maturing MYGA to your longest term 7 or 10 years to keep you ladder balanced?
Welcome to the Forum! Glad that you posted your question.

I won’t get to my first MYGA maturity until just under two years from now. At that time, I plan to look at MYGA interest rates vs CDs and bond funds, and make a decision about how to proceed.

There’s currently a wide gap between MYGA credited rates and the rates available on alternative assets. I don’t know if that gap will be over time. But I’ll be watching!
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by indexfundfan »

Stinky, I wanted to check with you on the Canvas product. When you apply with non-qualified funds (suppose you apply on day T+0), do you know when do they take the money out from your bank account, and what is the policy issue date?

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

Post by Zosima »

indexfundfan wrote: Sun Jan 03, 2021 2:57 pm Stinky, I wanted to check with you on the Canvas product. When you apply with non-qualified funds (suppose you apply on day T+0), do you know when do they take the money out from your bank account, and what is the policy issue date?

Thank you.
I am not Stinky but when I applied for a Canvas/Puritan MYGA with non-qualified funds, Canvas withdrew the funds fairly quickly (T+3) but it took two weeks (T+14) to issue the policy. It was slower than I had hoped for but still much faster than Americo (which I purchased through Blueprint) which has been over a month (and counting) for policy issuance.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by Stinky »

indexfundfan wrote: Sun Jan 03, 2021 2:57 pm Stinky, I wanted to check with you on the Canvas product. When you apply with non-qualified funds (suppose you apply on day T+0), do you know when do they take the money out from your bank account, and what is the policy issue date?

Thank you.
I'll give you my dates, and tell you an embarrassing story.

I submitted the application for a Canvas non-qualified annuity on Saturday, 12/26. I hit the "fund my policy now" button. Shouldn't have done that.

As I thought about it more, I decided to go the qualified route with Canvas. I called Canvas on Monday morning, 12/28. They told me that since I hit the "fund my policy now" button, there was nothing they could do to stop the system from trying to tap my bank account for the non-qualified annuity. The Canvas system tried to tap my bank account on Tuesday, 12/29, and the attempted draft was rejected. Canvas assured me that they would only attempt to tap my bank account one time, unless I instructed them otherwise.

If I had allowed the Canvas system to tap my bank account on Tuesday 12/29, I assume that the policy issue date would have been Wednesday 12/30 or Thursday 12/31. But, I'll never know because I'm not buying a non-qualified annuity from Canvas.

Of course, YMMV.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by HueyLD »

indexfundfan wrote: Sun Jan 03, 2021 2:57 pm Stinky, I wanted to check with you on the Canvas product. When you apply with non-qualified funds (suppose you apply on day T+0), do you know when do they take the money out from your bank account, and what is the policy issue date?
I am not Mr. Stinky but I did call Canvas very recently about the turnaround time of an application with NQ funds.

Spoke with Nicole and she said that the entire application process can be done online with NQ funds, including ACH withdrawal of the contribution. And the process typically takes up to 10 business days.

OTOH, qualified funds will require manual process and signature notarization and of course over an extended period of time.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by indexfundfan »

Thank you all for sharing your experiences with Canvas.

Gjlynch17, since Canvas issued the policy only like two weeks later, do you know if your money was earning any interest during the interim two weeks?

In my dealings with MYGA funding (Oxford, Oceanview, Americo, Gainbridge), the MYGAs all start earning interest the day the check is cleared or at worst the next day.

I have emailed Canvas with this question and will post back what they say.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by Zosima »

indexfundfan wrote: Sun Jan 03, 2021 4:10 pm Thank you all for sharing your experiences with Canvas.

Gjlynch17, since Canvas issued the policy only like two weeks later, do you know if your money was earning any interest during the interim two weeks?

In my dealings with MYGA funding (Oxford, Oceanview, Americo, Gainbridge), the MYGAs all start earning interest the day the check is cleared or at worst the next day.

I have emailed Canvas with this question and will post back what they say.
Indexfundfan, Canvas did not credit my MYGA from the date the funds were cleared. I should check with them to inquire about that. Please let us know how they respond to your same question. Thank you.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by nalor511 »

Does anyone know what myga rates were like compared to CDs when CD rates were high?
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by HueyLD »

indexfundfan wrote: Sun Jan 03, 2021 4:10 pm Thank you all for sharing your experiences with Canvas.

Gjlynch17, since Canvas issued the policy only like two weeks later, do you know if your money was earning any interest during the interim two weeks?

In my dealings with MYGA funding (Oxford, Oceanview, Americo, Gainbridge), the MYGAs all start earning interest the day the check is cleared or at worst the next day.
Question: Did the insurance company credit your policy with interest even before the contract was issued?
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by Stinky »

HueyLD wrote: Mon Jan 04, 2021 8:18 am
indexfundfan wrote: Sun Jan 03, 2021 4:10 pm Thank you all for sharing your experiences with Canvas.

Gjlynch17, since Canvas issued the policy only like two weeks later, do you know if your money was earning any interest during the interim two weeks?

In my dealings with MYGA funding (Oxford, Oceanview, Americo, Gainbridge), the MYGAs all start earning interest the day the check is cleared or at worst the next day.
Question: Did the insurance company credit your policy with interest even before the contract was issued?
I believe that interest is always credited from the “policy issue date”, which is shown on the “schedule” page on the front of the policy.

A person might receive their actual policy on the policy issue date, if the policy is delivered electronically. Alternatively, the policy might come a week or two later if it is mailed. Practices on policy delivery vary by insurance company.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by indexfundfan »

HueyLD wrote: Mon Jan 04, 2021 8:18 am
indexfundfan wrote: Sun Jan 03, 2021 4:10 pm Thank you all for sharing your experiences with Canvas.

Gjlynch17, since Canvas issued the policy only like two weeks later, do you know if your money was earning any interest during the interim two weeks?

In my dealings with MYGA funding (Oxford, Oceanview, Americo, Gainbridge), the MYGAs all start earning interest the day the check is cleared or at worst the next day.
Question: Did the insurance company credit your policy with interest even before the contract was issued?
No, I did not get interest before the policy was issued.

In my case, the insurers issue the policy within a day of taking my money. So the MYGAs start earning interest the day (or the next) once the check or ACH is cleared.

IMO, the fair thing to do is to take your money only when they are ready to issue the policy; not take your money, then issue the policy 2 weeks later. I am trying to find out what Canvas is doing. They haven't replied to my email yet.
Last edited by indexfundfan on Mon Jan 04, 2021 9:33 am, edited 1 time in total.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by indexfundfan »

I would like to clarify my experience with Americo.

Like many who have shared their experiences, I also encountered a delay with the Americo MYGA issuance. I sent in the premium by check, but they did not cash the check until they were about to issue the policy. From my notes, the policy issue date turns out to be the same day that my check cleared the bank.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by indexfundfan »

I have received a response from Canvas. Here's my understanding of the timeline, as explained in the email:

1) Money leaves bank account (immediate to 5 days)
2) "Another few days" wait for the funds to be applied
3) Money is received by Canvas/Puritan

Canvas/Puritan will start crediting the policy when they receive the money (Step 3). They are estimating 10 business days for the policy to be issued upon application.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by nalor511 »

Seems like myga would be something cool to have access to in brokerage accounts, rather than a mishmash of private brokers. Then you could just buy it right in your IRA
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by Zosima »

nalor511 wrote: Mon Jan 04, 2021 7:08 pm Seems like myga would be something cool to have access to in brokerage accounts, rather than a mishmash of private brokers. Then you could just buy it right in your IRA
Fidelity offers MYGAs but the options are limited. Fidelity only offers from six carriers (all A+ or A++ rated) so credit quality is exceptional but rates are lower than agents who offer a broader selection of insurance companies such as Blueprint, Stan the Annuity Man or Immediate Annuities.

https://www.fidelity.com/annuities/defe ... s/overview

https://www.fidelity.com/annuities/defe ... es/compare
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by Bearcat78 »

The MYGA rates at fidelity are about as bad as CD rates. I understand they are better rated by A.M. Best but doesn't look like worth the extra risk for .1%. I guess I'm willing to take a little more risk with Canvas for quite a bit higher rate. Iowa has a $250,000 insurance coverage. (I hope!)
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by nalor511 »

Bearcat78 wrote: Mon Jan 04, 2021 8:22 pm The MYGA rates at fidelity are about as bad as CD rates. I understand they are better rated by A.M. Best but doesn't look like worth the extra risk for .1%. I guess I'm willing to take a little more risk with Canvas for quite a bit higher rate. Iowa has a $250,000 insurance coverage. (I hope!)
Lucky, CA only covers 80% value up to 250k
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by anonsdca »

Awesome thread Stinky (and others), thanks for all this good information. I think I found my answers here but want to confirm:

1 - I have a MM account now (non-tax deferred) HYSA @1%.

2- I am 56 now.

3 -If I used that taxable account to fund a 4-year MYGA--I could then (at 60 yrs old):
A-Just withdraw the money and put back in my taxable account
B- With zero tax penalties, or tax issues?
C -I get tax deferment on the interest until the end of the MYGA
D- and when I take it out, I just pay tax on the interest and can do what I want with the principle tax or tax deferred account--my choice?

Thank you so much!
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by Stinky »

anonsdca wrote: Mon Jan 04, 2021 10:24 pm Awesome thread Stinky (and others), thanks for all this good information. I think I found my answers here but want to confirm:

1 - I have a MM account now (non-tax deferred) HYSA @1%.

2- I am 56 now.

3 -If I used that taxable account to fund a 4-year MYGA--I could then (at 60 yrs old):
A-Just withdraw the money and put back in my taxable account
B- With zero tax penalties, or tax issues?
C -I get tax deferment on the interest until the end of the MYGA
D- and when I take it out, I just pay tax on the interest and can do what I want with the principle tax or tax deferred account--my choice?

Thank you so much!
Thank you for your kind words.

In response to your question,
--- Point 3A is correct. You can withdraw the principal plus interest and put it back in your taxable account.
--- Point 3B is correct. Since you will be over age 59.5, you will have no tax penalty upon receipt of the MYGA funds.
--- Point 3C is correct. Interest income is reported only to IRS when funds are withdrawn. So your tax reporting will be for four years of interest, all at one time.
--- Point 3D is at least partially, and maybe fully, correct. Presuming it's purchased in a taxable account, your tax reporting when the MYGA matures will be just for interest earned, and you can do what you want with the principal. However, if the MYGA was purchased in a tax-deferred account, there would be no taxable income if the matured MYGA proceeds stayed in the tax-deferred account - and, just like any other tax-deferred account, there would be taxable income for any funds withdrawn from the tax-deferred account, whether they arose from principal or interest on the MYGA.

Post back if you have questions.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by Stinky »

I just finished purchasing a MYGA through Canvas Annuity, and wanted to share the timeline. The annuity was funded with IRA money.

—- Monday, 12/28 - Initial call with Canvas to assess “suitability”
—- Tuesday, 12/29 - Received application and several other documents via email. Completed the documents by hand, scanned them, and emailed back to Canvas
—- Wednesday, 12/30 - Notified that my application was approved, and that Canvas would reach out to Vanguard, my IRA custodian, to transfer funds
—- Monday, 1/4 - Vanguard put a check in the mail to Canvas
—- Friday, 1/8 - Check received by Canvas. Policy issued as of this date.
—- Thursday, 1/14 - Policy information available on Canvas website

So the process from initial telephone contact to policy issue date was 11 days, including the New Year holiday. That’s slower than a Canvas MYGA funded with taxable funds, due to the additional step of getting funds from Vanguard. But it’s faster than any IRA MYGA that I bought through Blueprint Income, because Canvas and Puritan Life are much tighter linked than Blueprint is to the insurers it sells for.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by HueyLD »

11 days for a qualified fund account opening is amazingly fast. Thank you for the update.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by indexfundfan »

I am getting around to submit an application to Canvas, with payment by check. However, I cannot reconcile the check payment address with the published insurer address.

I was asked to mail the check to, either

PO Box 81853 Lincoln, NE 68501 or 777 Research Drive Lincoln, NE 68521

To make sure I'm sending the check to a legitimate place, I looked up the address information from my state insurance website. It lists the address of Puritan Life as

7272 East Indian School Rd, Suite 100, Scottsdale, AZ 85251.
Website: puritanlife.com

Nowhere can I find the Nebraska address on Puritanlife.com.

Did anyone reconcile the addresses? I think I am probably being overly cautious and must have overlooked something.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by Stinky »

indexfundfan wrote: Tue Jan 19, 2021 8:38 pm I am getting around to submit an application to Canvas, with payment by check. However, I cannot reconcile the check payment address with the published insurer address.

I was asked to mail the check to, either

PO Box 81853 Lincoln, NE 68501 or 777 Research Drive Lincoln, NE 68521

To make sure I'm sending the check to a legitimate place, I looked up the address information from my state insurance website. It lists the address of Puritan Life as

7272 East Indian School Rd, Suite 100, Scottsdale, AZ 85251.
Website: puritanlife.com

Nowhere can I find the Nebraska address on Puritanlife.com.

Did anyone reconcile the addresses? I think I am probably being overly cautious and must have overlooked something.
My Puritan Life policy shows the Lincoln, NE post office box as the "administrative office", and shows the Phoenix street address as the "home office".

In my experience, it's not uncommon for administrative offices for life insurance companies to be at different locations than the statutory home office. I could go into more detail, but that situation was present in the group of life insurance companies that I worked for.

I don't believe that there's anything amiss with your instructions.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by jes58 »

Can these products be purchased with Roth money ? If so what happens at maturity with interest income ?
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by Stinky »

jes58 wrote: Wed Jan 20, 2021 5:14 am Can these products be purchased with Roth money ? If so what happens at maturity with interest income ?
Yes, a MYGA can be purchased within a Roth.

At maturity, the interest and principal will stay within the Roth wrapper - either by being transferred back to Vanguard/Fidelity/Schwab/etc., or by being rolled into a new MYGA or other annuity. No taxes will be due, consistent with Roth general rules.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by Zosima »

Stinky wrote: Tue Jan 19, 2021 9:17 pm
indexfundfan wrote: Tue Jan 19, 2021 8:38 pm I am getting around to submit an application to Canvas, with payment by check. However, I cannot reconcile the check payment address with the published insurer address.

I was asked to mail the check to, either

PO Box 81853 Lincoln, NE 68501 or 777 Research Drive Lincoln, NE 68521

To make sure I'm sending the check to a legitimate place, I looked up the address information from my state insurance website. It lists the address of Puritan Life as

7272 East Indian School Rd, Suite 100, Scottsdale, AZ 85251.
Website: puritanlife.com

Nowhere can I find the Nebraska address on Puritanlife.com.

Did anyone reconcile the addresses? I think I am probably being overly cautious and must have overlooked something.
My Puritan Life policy shows the Lincoln, NE post office box as the "administrative office", and shows the Phoenix street address as the "home office".

I don't believe that there's anything amiss with your instructions.
+1. The mailing address for my Puritan LIfe on my online account is the same Lincoln, NE address as that provided by Indexfundfan
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by HueyLD »

One reason many life insurance companies have their admin offices in Iowa is because of the lower cost of doing back office operation there.

Very similar to Vanguard’s moving their back office processing to El Paso and other lower cost locations.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by indexfundfan »

gjlynch17 wrote: Wed Jan 20, 2021 6:25 am
Stinky wrote: Tue Jan 19, 2021 9:17 pm
indexfundfan wrote: Tue Jan 19, 2021 8:38 pm I am getting around to submit an application to Canvas, with payment by check. However, I cannot reconcile the check payment address with the published insurer address.

I was asked to mail the check to, either

PO Box 81853 Lincoln, NE 68501 or 777 Research Drive Lincoln, NE 68521

To make sure I'm sending the check to a legitimate place, I looked up the address information from my state insurance website. It lists the address of Puritan Life as

7272 East Indian School Rd, Suite 100, Scottsdale, AZ 85251.
Website: puritanlife.com

Nowhere can I find the Nebraska address on Puritanlife.com.

Did anyone reconcile the addresses? I think I am probably being overly cautious and must have overlooked something.
My Puritan Life policy shows the Lincoln, NE post office box as the "administrative office", and shows the Phoenix street address as the "home office".

I don't believe that there's anything amiss with your instructions.
+1. The mailing address for my Puritan LIfe on my online account is the same Lincoln, NE address as that provided by Indexfundfan
Thank you all.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by stepaway »

Assuming I do a 1035 exchange and the principal is from taxable account, does this mean I could exclude the MYGA's interest from the calculation of AGI for ACA / CoveredCA purposes?

If not, would you know whether the ACA AGI need to be adjusted by the annual interest earned or only at maturity?

Thanks for posting detailed MYGAs information.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by Stinky »

mauwong wrote: Wed Jan 20, 2021 8:24 am Assuming I do a 1035 exchange and the principal is from taxable account, does this mean I could exclude the MYGA's interest from the calculation of AGI for ACA / CoveredCA purposes?
I’m definitely not an ACA expert.

But what I know is that there should be no reporting of taxable income from a taxable annuity, including MYGAs, until funds are withdrawn from the contract. Taxable income isn’t reported on MYGAs on an annual basis while the contract is compounding. Nor is it reported at the time of a 1035 exchange to another annuity.

Not only am I not an ACA expert, I am not an accountant. But that’s my interpretation of what I see through google searches on ACA MAGI, plus my knowledge of annuity taxation.

It’s possible that some of the more broadly based annuity marketing organizations (Blueprint Income, Stan the annuity Man, immediateannuities.com) could give you more definitive advice.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by indexfundfan »

It's also my understanding that the accrued earnings in the MYGA are not reported yearly (unlike compared to CDs which must be reported yearly). So these earnings are not added to your income and will not affect your ACA subsidy qualification.

Of course when the MYGA matures, the earnings over the entire term become taxable (plus 10% penalty if below age 59.5), unless you elect to rollover into another MYGA.

The above discussion is for the case where non-qualified funds (taxable account) are used to purchase the MYGA.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by stepaway »

Thanks, Stinky and indexfundfan.

Definitely perking up my interest. :beer

If MYGA's interest can be deferred for ACA purposes, it would be great as it allows me to do more Roth conversion at lower tax rate and manage the ACA Subsidy cliff.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by indexfundfan »

I have completed my purchase of a Canvas/Puritan MYGA using non-qualified (taxable) funds. I thought I would post the timeline here for those interested in purchasing by check payment. I elected to pay by check instead of ACH because I don't like them taking the money from my bank account many days before they are ready to issue the policy.

T+0 : Application submitted online.
T+1 : Put check in the mail.
T+4 : Policy issued. Online status changed from "Application Processing" to "Application pending issue".
T+5 : Check cleared bank account. Online portal showed policy issued, dated T+4.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by HueyLD »

Indexfundfan,

Which online access did you sign in? Was it Canvas website or Puritan website?
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by indexfundfan »

HueyLD wrote: Sun Jan 31, 2021 9:51 am Indexfundfan,

Which online access did you sign in? Was it Canvas website or Puritan website?
https://mycanvasannuity.com/

You can register an account with your policy number. You can also download the policy issue packet without waiting for it in the mail.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by indexfundfan »

Upthread, gjlynch17 reported that for a Canvas policy with payment made by ACH, the ACH withdrawal happened on T+3 but the policy was only issued on T+14. I believe Canvas is using a third party ACH vendor which held up the funds for several days before forwarding the funds to Canvas/Puritan. Paying by check gets around this issue (at the slight risk of the check being lost in the mail).
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by Stinky »

It looks like Gainbridge has just increased the interest rate being paid on new MYGAs. I’ve been watching the rate on the 8 year (the one that I bought). It was 3.40% in October
2020, fell to 3.20% in November and 3.00% in January, but now has bounced back to 3.15%.

I’m not tracking interest rates on other Gainbridge buckets, but I expect that those rates have also risen today.

I’ve been watching MYGA rates pretty closely for the past six months. The general trend has been to reduce rates on new policies, but I’ve seen a few companies starting to increase rates in recent weeks.

Canvas still has the highest rates out there. They pay 3.50% on a seven year MYGA and 3.25% on the five year product.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by indexfundfan »

Stinky wrote: Mon Feb 01, 2021 9:17 am It looks like Gainbridge has just increased the interest rate being paid on new MYGAs. I’ve been watching the rate on the 8 year (the one that I bought). It was 3.40% in October
2020, fell to 3.20% in November and 3.00% in January, but now has bounced back to 3.15%.

I’m not tracking interest rates on other Gainbridge buckets, but I expect that those rates have also risen today.

I’ve been watching MYGA rates pretty closely for the past six months. The general trend has been to reduce rates on new policies, but I’ve seen a few companies starting to increase rates in recent weeks.

Canvas still has the highest rates out there. They pay 3.50% on a seven year MYGA and 3.25% on the five year product.
Thanks for the update. I had tracked the 3,4,5-years at Gainbridge before buying the 3-yr at Canvas. The yields at Gainbridge have increased by 5,10,20 basis points, respectively.

The 10-yr treasury yield has gone up more than the shorter term treasuries recently, so it made sense that the long term MYGA yields at Gainbridge have increased more.
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Re: Purchasing MYGAs - Blueprint Income vs. Gainbridge vs. Canvas

Post by stepaway »

I went ahead and applied for a MYGA with Blueprint Income ("BPI") and would like to share my experience.

After contacting BPI to clarify certain details, I started the application process online through BPI portal last week and signed the SBLI application / Suitability Questionaire (in which info I provided was transferred) 6 days later. The process is relatively smooth barring the following issues / concerns:

1. Note that you may only track one online application at a time. The moment you start a 2nd application, it would supersede the prior completed application and you will lose the ability to track the 1st application. BPI, however, can send you a separate status link to track the process.

2. The annuity application doesn't have the guaranteed rate listed anywhere in the application. BPI assured me that this is standard and re-confirmed the rate separately on an e-mail.

3. BPI sent me a prepaid FedEx label to send my check. I asked whether I need a reference note/number included on the check. I was told none is needed but if I prefer I could wait for the policy number (to be issued around 1-3 business days) to be noted on the check.

4. I noticed certain errors in the SBLI application and went back and forth twice with BPI to correct them. One thing that really bothered me is that I was told that I could go ahead and sign the e-doc after the 1st revision although I noted a subsequent error. I was told that the correction will be done after e-signing and this is a usual practice with insurance application process. I pushed back and insisted that BPI makes the correction before signing. I'm glad I did since as soon as I signed the application, it was soon countersigned by BPI.

The first 3 issues are immaterial as BPI was able alleviate them, but I'm still surprised that subsequent revisions can be made after signing though understandably this is just the application, not the actual document. Is this really standard with the annuity process? I'm new at this so I'm probably being overly cautious.
Last edited by stepaway on Tue Feb 02, 2021 1:48 am, edited 3 times in total.
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