Purchasing MYGAs (multi year guaranteed annuities) - mega thread

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

Post by SlowMovingInvestor »

According to Blueprint, NYL is increasing MYGA rates to 2.25% (for all years) from Monday. 2.25% for 3 years for an A++ institution is a very good rate.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Stinky »

SlowMovingInvestor wrote: Fri Feb 11, 2022 7:23 pm According to Blueprint, NYL is increasing MYGA rates to 2.25% (for all years) from Monday. 2.25% for 3 years for an A++ institution is a very good rate.
I agree, that’s a good rate.

You can make the 2.25% rate with a policy of $100k or more. Smaller policies get a lower rate.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by fatcoffeedrinker »

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

Post by bog007 »

they even have a one year myga at blueprint :)
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Zosima »

fatcoffeedrinker wrote: Fri Feb 11, 2022 10:57 pm I need to add another 5-year MYGA to my ladder this year. Because I am in CA, where the state guaranty is not great, for 5-year MYGAs, I always go with "A" or better. I have 5-year MYGAs with Americo and SBLI (and a 3-year with Sagicor), so I wanted to further diversify.

Blueprint is indicating that AIG will raise its 5-year MYGA from 2.65% to 2.80% as of 2/13, matching the good rate from Americo. So FYI if anyone else finds this to be an attractive rate for an "A" rated company (and actually rated A+ by S&P).
As additional FYI for anyone in the MYGA market, in California, another A rated company, American General Insurance Company, also offers a 2.80% rate. This MYGA is available through Stan the Annuity Man's site but not Blueprint. Outside of California, Pacific Guardian Life (another A rated company) offers 5 year MYGAs at 3.0%.

For those with greater risk tolerance and/or stronger State Insurance Guaranty Funds, there are several A- rated companies with 5-year MYGAs at 3.0% (Oceanview, Sagicor) or 3.10% (Gainbridge).

It is nice to see the upward pressure on rates.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Zosima »

MYGA rates are continuing to increase for highly rated insurance companies. Americo (A rated) now offers a 5-year MYGA for 3.05% and New York Life (A++), Western and Southern (A+) and The Standard (A) are also increasing rates.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Stinky »

Stinky wrote: Fri Feb 04, 2022 8:23 am Pacific Guardian Life, rated A by AM Best, is a relatively new player in the MYGA space. Their products are now available in 40+ states.

PGL’s rates are currently just about the highest for a company with their rating. For example, the 5 year rate is currently 3.00%. And they offer a 10% penalty free withdrawal in all policy years (including the first policy year), and an additional one-time 10% free withdrawal during the contract lifetime. And they don’t assess an MVA on surrenders. It’s a very competitive contract.

I’ll likely be in the market for a new MYGA in the next few weeks, and noted that PGL products are not currently listed on the Blueprint Income site. I was in contact with Blueprint yesterday, and they told me that there are some hiccups in the licensing and application process that might preclude PGL products from being offered by Blueprint for an extended time - maybe most of 2022.

So I’m looking at other agencies that carry PGL products, including Annuity Advantage, to potentially make this purchase.

EDIT - I meant to note that PGL offers guarantee periods from 3-10 years. The current rates range from 2.50% at 3 years to 3.10% at 10 years.
For info - I just completed the purchase of a Pacific Guardian MYGA. The process was fast and efficient. 3.00% for 5 years from an A rated company is attractive to me.

Two comments -
—- As mentioned above, Pacific Guardian is not available on the Blueprint site. I bought through Annuity Advantage.
—- Oddly, PG doesn’t currently have customer portal where you can see your policy details online. I questioned the company about this, and they said they plan to have a customer portal later this year.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by tj »

Stinky wrote: Thu Feb 24, 2022 9:52 am
Stinky wrote: Fri Feb 04, 2022 8:23 am Pacific Guardian Life, rated A by AM Best, is a relatively new player in the MYGA space. Their products are now available in 40+ states.

PGL’s rates are currently just about the highest for a company with their rating. For example, the 5 year rate is currently 3.00%. And they offer a 10% penalty free withdrawal in all policy years (including the first policy year), and an additional one-time 10% free withdrawal during the contract lifetime. And they don’t assess an MVA on surrenders. It’s a very competitive contract.

I’ll likely be in the market for a new MYGA in the next few weeks, and noted that PGL products are not currently listed on the Blueprint Income site. I was in contact with Blueprint yesterday, and they told me that there are some hiccups in the licensing and application process that might preclude PGL products from being offered by Blueprint for an extended time - maybe most of 2022.

So I’m looking at other agencies that carry PGL products, including Annuity Advantage, to potentially make this purchase.

EDIT - I meant to note that PGL offers guarantee periods from 3-10 years. The current rates range from 2.50% at 3 years to 3.10% at 10 years.
For info - I just completed the purchase of a Pacific Guardian MYGA. The process was fast and efficient. 3.00% for 5 years from an A rated company is attractive to me.

Two comments -
—- As mentioned above, Pacific Guardian is not available on the Blueprint site. I bought through Annuity Advantage.
—- Oddly, PG doesn’t currently have customer portal where you can see your policy details online. I questioned the company about this, and they said they plan to have a customer portal later this year.
Apparently they are based in Hawaii.

https://www.pacificguardian.com/about-us

https://www.pacificguardian.com/diamond ... ed-annuity
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by HueyLD »

“ Two comments -

—- As mentioned above, Pacific Guardian is not available on the Blueprint site. I bought through Annuity Advantage.
—- Oddly, PG doesn’t currently have customer portal where you can see your policy details online. I questioned the company about this, and they said they plan to have a customer portal later this year.”

Absent customer portal, how do you check the status of your contract without having to call the insurance company?
Last edited by HueyLD on Thu Feb 24, 2022 10:09 am, edited 1 time in total.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Stinky »

tj wrote: Thu Feb 24, 2022 9:57 am
Stinky wrote: Thu Feb 24, 2022 9:52 am
Stinky wrote: Fri Feb 04, 2022 8:23 am Pacific Guardian Life, rated A by AM Best, is a relatively new player in the MYGA space. Their products are now available in 40+ states.

PGL’s rates are currently just about the highest for a company with their rating. For example, the 5 year rate is currently 3.00%. And they offer a 10% penalty free withdrawal in all policy years (including the first policy year), and an additional one-time 10% free withdrawal during the contract lifetime. And they don’t assess an MVA on surrenders. It’s a very competitive contract.

I’ll likely be in the market for a new MYGA in the next few weeks, and noted that PGL products are not currently listed on the Blueprint Income site. I was in contact with Blueprint yesterday, and they told me that there are some hiccups in the licensing and application process that might preclude PGL products from being offered by Blueprint for an extended time - maybe most of 2022.

So I’m looking at other agencies that carry PGL products, including Annuity Advantage, to potentially make this purchase.

EDIT - I meant to note that PGL offers guarantee periods from 3-10 years. The current rates range from 2.50% at 3 years to 3.10% at 10 years.
For info - I just completed the purchase of a Pacific Guardian MYGA. The process was fast and efficient. 3.00% for 5 years from an A rated company is attractive to me.

Two comments -
—- As mentioned above, Pacific Guardian is not available on the Blueprint site. I bought through Annuity Advantage.
—- Oddly, PG doesn’t currently have customer portal where you can see your policy details online. I questioned the company about this, and they said they plan to have a customer portal later this year.
Apparently they are based in Hawaii.

https://www.pacificguardian.com/about-us

https://www.pacificguardian.com/diamond ... ed-annuity
Yes, they are based in Hawaii. But I got an email from their customer service team at 8am Central time today. That’s 4am in Honolulu. So somebody is working early.

One other interesting thing - Pacific Guardian is wholly owned by Meiji Yusuda, which is a giant Japanese life insurer. Meiji Yasuda also owns “The Standard”, a life insurance company based in Portland Oregon. Both US companies operate in the MYGA market. However, Pacific Guardian’s rates are higher, and it’s contract provisions are more generous, than those of The Standard.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Stinky »

HueyLD wrote: Thu Feb 24, 2022 10:05 am “ Two comments -

—- As mentioned above, Pacific Guardian is not available on the Blueprint site. I bought through Annuity Advantage.
—- Oddly, PG doesn’t currently have customer portal where you can see your policy details online. I questioned the company about this, and they said they plan to have a customer portal later this year.”

Absent customer portal, how do you check the status of your contract without having to all the insurance company?
Either call or email. For now at least.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by SlowMovingInvestor »

SlowMovingInvestor wrote: Fri Feb 11, 2022 7:23 pm According to Blueprint, NYL is increasing MYGA rates to 2.25% (for all years) from Monday. 2.25% for 3 years for an A++ institution is a very good rate.
And NYL is going up to 2.40% for a 3-year jumbo Monday (they went from 2.25 > 2.35 -> 2.4)
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by GaryA505 »

I'm sure someone has asked this before but I can't find it. Since MYGA interest is tax-deferred, in which cases is it included/excluded from MAGI (during the term of the MYGA)?
For example: SS, IRMAA, ACA

And, if you roll the MYGA into another MYGA or into a SPIA, does the intertest continue to be deferred as long as you keep rolling it?
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

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GaryA505 wrote: Tue Mar 08, 2022 12:56 pm I'm sure someone has asked this before but I can't find it. Since MYGA interest is tax-deferred, in which cases is it included/excluded from MAGI (during the term of the MYGA)?
For example: SS, IRMAA, ACA

And, if you roll the MYGA into another MYGA or into a SPIA, does the intertest continue to be deferred as long as you keep rolling it?
There’s no “income” from a taxable MYGA (or any other annuity in the accumulation phase, for that matter) until money is withdrawn from the contract. That applies whether it’s the original annuity or one acquired through a 1035 exchange.

When funds are withdrawn from a taxable accumulation annuity, they are deemed to be “income” first, and “basis” last.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by GaryA505 »

Stinky wrote: Tue Mar 08, 2022 1:22 pm
GaryA505 wrote: Tue Mar 08, 2022 12:56 pm I'm sure someone has asked this before but I can't find it. Since MYGA interest is tax-deferred, in which cases is it included/excluded from MAGI (during the term of the MYGA)?
For example: SS, IRMAA, ACA

And, if you roll the MYGA into another MYGA or into a SPIA, does the intertest continue to be deferred as long as you keep rolling it?
There’s no “income” from a taxable MYGA (or any other annuity in the accumulation phase, for that matter) until money is withdrawn from the contract. That applies whether it’s the original annuity or one acquired through a 1035 exchange.

When funds are withdrawn from a taxable accumulation annuity, they are deemed to be “income” first, and “basis” last.
Thanks. Someone on another site suggested using MYGAs and an then a SPIA. Each time the MYGA contract expires, you can choose to take the withdrawal as income or roll it into another MYGA. Then, maybe when you get older, roll the MYGAs into a SPIA. Now I see how that works.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by bulbs »

It is my opinion that SPIAs are very poor investments. While SPIAs may advertise a high rate of return, the return includes your own money. Given a normal lifetime, the actual interest earned on investment from a SIPA is in the 1% range. I suggest laddering your MYGAs to get the highest rate of return. When your MYGA’s surrender period ends, transfer (1035 tax deferred exchange) it to multiple MYGAs with different year surrender periods, and different companies. When you purchase new MYGAs, don’t put it all into one MYGA. Ladder your investment.

Another reason to ladder, buying smaller annuities with various different companies, is that when you do need cash from a MYGA, you are only taxed a smaller amount, as you have less interest build up in that particular annuity. The only caveat is this posting from the ImmediateAnnuities.com website: “Purchasing several individual annuity contracts from a single insurance company within the same calendar year is often referred to as aggregation. In this scenario, the IRS treats these purchases as a single transaction in order to prevent the owner of the policies from manipulating the basis in each contract. Aggregation can result in an unexpected tax liability for the annuity owner. This rule does not apply when contracts are purchased from different insurance companies or if one annuity is deferred and another is immediate.”
Last edited by bulbs on Mon Mar 14, 2022 8:10 am, edited 1 time in total.
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MYGA - Switch from B++ to A- Insurer While I Can?

Post by Cheego »

I'm just about at the end of the 30 day free look with a 5 year MYGA from Sentinel (B++ rated) at 3.15%, but there is now a 3.10% MYGA from Fidelity & Guaranty Life (A- rated) offering 3.10% for 5 years.

In light of the guaranty association in my state, I'm not sure if there is a big difference between B++ and A- to warrant switching and losing about $700 over 5 years. Should I switch to the A- rated company?
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Re: MYGA - Switch from B++ to A- Insurer While I Can?

Post by Stinky »

Cheego wrote: Fri Mar 11, 2022 3:53 pm I'm just about at the end of the 30 day free look with a 5 year MYGA from Sentinel (B++ rated) at 3.15%, but there is now a 3.10% MYGA from Fidelity & Guaranty Life (A- rated) offering 3.10% for 5 years.

In light of the guaranty association in my state, I'm not sure if there is a big difference between B++ and A- to warrant switching and losing about $700 over 5 years. Should I switch to the A- rated company?
If I were faced with that choice, I wouldn’t make the change. But then again, I’m not you.

Did you consider both types of losses that you would have when you came up with your $700 loss in interest.
- First, you’d be earning 0.05% less interest per year for 5 years.
- Second, I don’t think that Sentinel would pay you any interest when you cancel the contract - plus, it will take a while for them to issue a refund check, for you to receive it, and for you to get the new policy in place. In total, your premium might not be earning any interest for 45-60 days.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by bulbs »

The difference between A- and B++ may be the width of a hair, or somewhat more substantial. Obviously $700 is real money over 5 years. Also, you may consider that F&G allows for accumulated interest withdrawals, where as Sentinel charges surrender charges on any withdrawal within 5 years. Also, F&G has a better death benefit than does Sentinel, especially if you are not married.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by SlowMovingInvestor »

Stinky (or anyone else), any comments on Western Southern?

They have a 2.45% Jumbo rate for 3 years, which strikes me as quite good. Also available at Fidelity.

They are rated A+ by AM Best.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Stinky »

SlowMovingInvestor wrote: Mon Mar 14, 2022 9:57 am Stinky (or anyone else), any comments on Western Southern?

They have a 2.45% Jumbo rate for 3 years, which strikes me as quite good. Also available at Fidelity.

They are rated A+ by AM Best.
Large, strong company.

I wouldn’t be concerned at all buying from them.

Note - rate is 2.30% for amounts of less than $100k.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by bulbs »

Why buy a 5yr. Western & Southern (A+) for 2.45%, when you can buy Mutual of Omaha (A+) for 2.6%, or Reliance Standard (A++) for 2.7%, or North American (A+) for 2.6%?
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by capjak »

"Why buy a 5yr. Western & Southern (A+) for 2.45%, when you can buy Mutual of Omaha (A+) for 2.6%, or Reliance Standard (A++) for 2.7%, or North American (A+) for 2.6%?"

I think you missed that it is a 3 year term not 5 year.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by bulbs »

I did, indeed, miss that. I anticipate that rates will continue to increase in the near future.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by PaulieLilly »

fyi ... I just received an email from Canvas announcing 3.0% for a 3 year MYGA. I went to their site and confirmed this. I believe it was 2.5% when I looked in back in January ...
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by bulbs »

Are there any other direct sell fixed annuities, other than Gainbridge and Canvas?
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Stinky »

bulbs wrote: Tue Mar 15, 2022 2:57 pm Are there any other direct sell fixed annuities, other than Gainbridge and Canvas?
I’m not aware of any.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by tj »

Stinky wrote: Tue Mar 15, 2022 3:18 pm
bulbs wrote: Tue Mar 15, 2022 2:57 pm Are there any other direct sell fixed annuities, other than Gainbridge and Canvas?
I’m not aware of any.
USAA.

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

Post by Wrench »

I got an email push from Blueprint Income this morning: Elco (rate B+) is now offering a 1 year MYGA, rate of 1%, with what appears to be a $15K minimum purchase.

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

Post by Stinky »

Wrench wrote: Fri Mar 18, 2022 5:47 am I got an email push from Blueprint Income this morning: Elco (rate B+) is now offering a 1 year MYGA, rate of 1%, with what appears to be a $15K minimum purchase.

Wrench
Same here.

And that product is somewhat mystifying to me. Why would someone purchase a contract from a low-rated insurer paying 1%, with a 5% surrender charge for early withdrawal, at a time when a risk-free 1 year Treasury bill is paying almost 1.2%?

Maybe it would be useful as a short-term 1035 exchange vehicle to push a tax gain from another life or annuity policy into the 2023 tax year. But that’s about the only rationale I can see.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by goodenyou »

2.45% 3-year New York Life (A++) >$100k is looking very tempting right now......May pull the trigger on that one....
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by SlowMovingInvestor »

goodenyou wrote: Fri Mar 18, 2022 6:03 pm 2.45% 3-year New York Life (A++) >$100k is looking very tempting right now......May pull the trigger on that one....
I'm tempted too, but .. with 3 year Treasuries at 2.14 % (depending on state tax rate, could easily be effectively 2.2- 2.3%) with much greater liquidity, I have a hard time pulling the trigger.

Someone in a state without income taxes could derive more benefit from the annuity. OTOH, corporate AAA bonds are pretty good too (around 2.3%).
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by goodenyou »

SlowMovingInvestor wrote: Fri Mar 18, 2022 7:00 pm
goodenyou wrote: Fri Mar 18, 2022 6:03 pm 2.45% 3-year New York Life (A++) >$100k is looking very tempting right now......May pull the trigger on that one....
I'm tempted too, but .. with 3 year Treasuries at 2.14 % (depending on state tax rate, could easily be effectively 2.2- 2.3%) with much greater liquidity, I have a hard time pulling the trigger.

Someone in a state without income taxes could derive more benefit from the annuity. OTOH, corporate AAA bonds are pretty good too (around 2.3%).
I need asset protection and live in a no state income tax state. MYGAs work for that. YMMV.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by tj »

goodenyou wrote: Fri Mar 18, 2022 7:54 pm
SlowMovingInvestor wrote: Fri Mar 18, 2022 7:00 pm
goodenyou wrote: Fri Mar 18, 2022 6:03 pm 2.45% 3-year New York Life (A++) >$100k is looking very tempting right now......May pull the trigger on that one....
I'm tempted too, but .. with 3 year Treasuries at 2.14 % (depending on state tax rate, could easily be effectively 2.2- 2.3%) with much greater liquidity, I have a hard time pulling the trigger.

Someone in a state without income taxes could derive more benefit from the annuity. OTOH, corporate AAA bonds are pretty good too (around 2.3%).
I need asset protection and live in a no state income tax state. MYGAs work for that. YMMV.
How do MYGAs give you asset protection?
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by 7eight9 »

tj wrote: Fri Mar 18, 2022 9:05 pm
goodenyou wrote: Fri Mar 18, 2022 7:54 pm
SlowMovingInvestor wrote: Fri Mar 18, 2022 7:00 pm
goodenyou wrote: Fri Mar 18, 2022 6:03 pm 2.45% 3-year New York Life (A++) >$100k is looking very tempting right now......May pull the trigger on that one....
I'm tempted too, but .. with 3 year Treasuries at 2.14 % (depending on state tax rate, could easily be effectively 2.2- 2.3%) with much greater liquidity, I have a hard time pulling the trigger.

Someone in a state without income taxes could derive more benefit from the annuity. OTOH, corporate AAA bonds are pretty good too (around 2.3%).
I need asset protection and live in a no state income tax state. MYGAs work for that. YMMV.
How do MYGAs give you asset protection?
How annuities can shield you from creditors
https://www.marketwatch.com/story/how-a ... 2013-10-08
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by goodenyou »

7eight9 wrote: Fri Mar 18, 2022 9:28 pm
tj wrote: Fri Mar 18, 2022 9:05 pm
goodenyou wrote: Fri Mar 18, 2022 7:54 pm
SlowMovingInvestor wrote: Fri Mar 18, 2022 7:00 pm
goodenyou wrote: Fri Mar 18, 2022 6:03 pm 2.45% 3-year New York Life (A++) >$100k is looking very tempting right now......May pull the trigger on that one....
I'm tempted too, but .. with 3 year Treasuries at 2.14 % (depending on state tax rate, could easily be effectively 2.2- 2.3%) with much greater liquidity, I have a hard time pulling the trigger.

Someone in a state without income taxes could derive more benefit from the annuity. OTOH, corporate AAA bonds are pretty good too (around 2.3%).
I need asset protection and live in a no state income tax state. MYGAs work for that. YMMV.
How do MYGAs give you asset protection?
How annuities can shield you from creditors
https://www.marketwatch.com/story/how-a ... 2013-10-08
Yep. I am a surgeon and I live in an annuity utopian state.
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David_w
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by David_w »

goodenyou wrote: Fri Mar 18, 2022 6:03 pm 2.45% 3-year New York Life (A++) >$100k is looking very tempting right now......May pull the trigger on that one....
Is the 2.45% for each year or over a total of 3 years?
Wrench
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Wrench »

Can one do a 1035 exchange from the cash value of whole life insurance into a MYGA? I have a policy with substantial cash value, but I don't want to cash it out because there would be a large tax bill. I am using all the "empty" space in my current tax bracket for Roth conversions and will do so for the next several years, at least until I take Social Security at age 70. I am thinking that a 1035 exchange into a 4 or 5 year MYGA could defer income/taxes until my Roth conversions are done, and might increase guaranteed income as well as do away with the premiums I pay every year. Does this make sense?

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

Post by RubyTuesday »

Stinky wrote: Fri Mar 18, 2022 5:57 am
Wrench wrote: Fri Mar 18, 2022 5:47 am I got an email push from Blueprint Income this morning: Elco (rate B+) is now offering a 1 year MYGA, rate of 1%, with what appears to be a $15K minimum purchase.

Wrench
Same here.

And that product is somewhat mystifying to me. Why would someone purchase a contract from a low-rated insurer paying 1%, with a 5% surrender charge for early withdrawal, at a time when a risk-free 1 year Treasury bill is paying almost 1.2%?

Maybe it would be useful as a short-term 1035 exchange vehicle to push a tax gain from another life or annuity policy into the 2023 tax year. But that’s about the only rationale I can see.
52 week TBill paying more like 1.6%.
Term: 52-Week
High Rate: 1.590%
Investment Rate*: 1.632%
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Allotted at High: 11.95%
Total Tendered: $113,105,060,800
Total Accepted: $35,303,663,300
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by tj »

David_w wrote: Tue Mar 22, 2022 5:36 pm
goodenyou wrote: Fri Mar 18, 2022 6:03 pm 2.45% 3-year New York Life (A++) >$100k is looking very tempting right now......May pull the trigger on that one....
Is the 2.45% for each year or over a total of 3 years?
It's each year.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Stinky »

tj wrote: Tue Mar 22, 2022 6:13 pm
David_w wrote: Tue Mar 22, 2022 5:36 pm
goodenyou wrote: Fri Mar 18, 2022 6:03 pm 2.45% 3-year New York Life (A++) >$100k is looking very tempting right now......May pull the trigger on that one....
Is the 2.45% for each year or over a total of 3 years?
It's each year.
And the interest compounds if you leave it in the contract.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Stinky »

Wrench wrote: Tue Mar 22, 2022 5:50 pm Can one do a 1035 exchange from the cash value of whole life insurance into a MYGA? I have a policy with substantial cash value, but I don't want to cash it out because there would be a large tax bill. I am using all the "empty" space in my current tax bracket for Roth conversions and will do so for the next several years, at least until I take Social Security at age 70. I am thinking that a 1035 exchange into a 4 or 5 year MYGA could defer income/taxes until my Roth conversions are done, and might increase guaranteed income as well as do away with the premiums I pay every year. Does this make sense?

Wrench
Yes, you can exchange a life insurance policy for an annuity. A MYGA could be an ideal place to park a life insurance cash value for a few years until you move into a lower tax bracket. The basis will carry right over from the life policy to the MYGA.

Withdrawals from annuities are treated as interest first, then basis.

If you wanted to push recognition of the interest out 4-5 years, that would be fine. Alternatively, you could buy a MYGA that allows for up to 10% free partial withdrawals, and dribble a little interest in every year.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by boglefannyc »

MYGA rates have to go up ASAP. T-bills are paying almost the same now.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by HueyLD »

Stinky wrote: Tue Mar 22, 2022 6:35 pm
tj wrote: Tue Mar 22, 2022 6:13 pm
David_w wrote: Tue Mar 22, 2022 5:36 pm
goodenyou wrote: Fri Mar 18, 2022 6:03 pm 2.45% 3-year New York Life (A++) >$100k is looking very tempting right now......May pull the trigger on that one....
Is the 2.45% for each year or over a total of 3 years?
It's each year.
And the interest compounds if you leave it in the contract.
And the maturity value of $100k at 2.45% per annum (compounded) is:

100,000*(1+2.45%)^3 = 107,531.55
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Stinky »

goodenyou wrote: Fri Mar 18, 2022 6:03 pm 2.45% 3-year New York Life (A++) >$100k is looking very tempting right now......May pull the trigger on that one....
NYL is increasing their jumbo rate to 2.70%, effective next week, for each of 3-7 year rate periods.
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HueyLD
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by HueyLD »

Stinky wrote: Fri Mar 25, 2022 12:14 pm
goodenyou wrote: Fri Mar 18, 2022 6:03 pm 2.45% 3-year New York Life (A++) >$100k is looking very tempting right now......May pull the trigger on that one....
NYL is increasing their jumbo rate to 2.70%, effective next week, for each of 3-7 year rate periods.
Well, that makes it 789.12 more in income over the three year period.

100,000*(1+2.7%)^3= 108,320.67
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Chardo »

Stinky wrote: Fri Mar 25, 2022 12:14 pm
goodenyou wrote: Fri Mar 18, 2022 6:03 pm 2.45% 3-year New York Life (A++) >$100k is looking very tempting right now......May pull the trigger on that one....
NYL is increasing their jumbo rate to 2.70%, effective next week, for each of 3-7 year rate periods.
Continuing a wave of increases throughout the industry. If I was looking to lock up money for a few years, I'd be inclined, if possible, to wait a bit for even higher rates. It's clear that rates won't be falling anytime soon, so only real risk of waiting is foregoing that interest for a short time.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by goodenyou »

HueyLD wrote: Fri Mar 25, 2022 12:18 pm
Stinky wrote: Fri Mar 25, 2022 12:14 pm
goodenyou wrote: Fri Mar 18, 2022 6:03 pm 2.45% 3-year New York Life (A++) >$100k is looking very tempting right now......May pull the trigger on that one....
NYL is increasing their jumbo rate to 2.70%, effective next week, for each of 3-7 year rate periods.
Well, that makes it 789.12 more in income over the three year period.

100,000*(1+2.7%)^3= 108,320.67
Nice. Especially at state guaranty limits.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Stinky »

goodenyou wrote: Sat Mar 26, 2022 1:23 pm
HueyLD wrote: Fri Mar 25, 2022 12:18 pm
Stinky wrote: Fri Mar 25, 2022 12:14 pm
goodenyou wrote: Fri Mar 18, 2022 6:03 pm 2.45% 3-year New York Life (A++) >$100k is looking very tempting right now......May pull the trigger on that one....
NYL is increasing their jumbo rate to 2.70%, effective next week, for each of 3-7 year rate periods.
Well, that makes it 789.12 more in income over the three year period.

100,000*(1+2.7%)^3= 108,320.67
Nice. Especially at state guaranty limits.
If there ever was a life insurance company whose strength (and ratings) supported investing more than state guaranty fund limits, that company is New York Life.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by goodenyou »

Stinky wrote: Sat Mar 26, 2022 1:37 pm
goodenyou wrote: Sat Mar 26, 2022 1:23 pm
HueyLD wrote: Fri Mar 25, 2022 12:18 pm
Stinky wrote: Fri Mar 25, 2022 12:14 pm
goodenyou wrote: Fri Mar 18, 2022 6:03 pm 2.45% 3-year New York Life (A++) >$100k is looking very tempting right now......May pull the trigger on that one....
NYL is increasing their jumbo rate to 2.70%, effective next week, for each of 3-7 year rate periods.
Well, that makes it 789.12 more in income over the three year period.

100,000*(1+2.7%)^3= 108,320.67
Nice. Especially at state guaranty limits.
If there ever was a life insurance company whose strength (and ratings) supported investing more than state guaranty fund limits, that company is New York Life.
I agree.
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