Purchasing MYGAs (multi year guaranteed annuities) - mega thread

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Re: Considering MYGA in General, Gainbridge Specificaly

Post by EricGold »

Stinky wrote: Fri May 03, 2024 12:34 pm As to “early death” - most insurers pay out the full account value at death, so there’s no profit for the insurer there. But some insurers, especially the lower rated ones, pay out only the surrender value at death unless the beneficiary finishes out the term. Those who take the money shortly after death generate a profit for the insurer.
I just called Gainbridge to ask this question and was told that the full account value was paid out. The Rep said that interest is calculated and accumulated daily but at the end of each year a complete interest calculation takes place. This sounded to me like the difference between APR and APY, or some variant thereof. I'm satisfied in that regard.

Since I was on the phone and the Rep was congenial and willing to chat a little, I asked her if she could tell me anything about the company investment thesis of the premiums. She said that she has a general approach kind of understanding that bonds are held to meet regulatory reserve requirements, the remainder is invested in equities, and that sometimes business dictates higher rates. The latter might be cash flow, or more likely credit rating considerations.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by poker27 »

Tolya-html wrote: Sat Apr 27, 2024 3:15 pm With rates being in 6.15 range now. I am thinking to get FastBreak for 10 years.
What are thoughts?
Company is new. But underwriters appears to be in good financial position as far assets under management?
While I likely don’t need ‘income’ for several years, I bought a 10yr gainbridge annuity a few months ago at 5.9%. I never thought I’d see that rate again, so I’m jumping at the 6.15!

If rates go down, I get to keep the rate. If rates go up substantially, at minimum I can withdraw the interest
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Stinky »

poker27 wrote: Sun May 05, 2024 1:52 pm
While I likely don’t need ‘income’ for several years, I bought a 10yr gainbridge annuity a few months ago at 5.9%. I never thought I’d see that rate again, so I’m jumping at the 6.15!
Are you keeping your total exposure to Gainbridge below your state guaranty fund limit?
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by poker27 »

Stinky wrote: Sun May 05, 2024 2:09 pm
poker27 wrote: Sun May 05, 2024 1:52 pm
While I likely don’t need ‘income’ for several years, I bought a 10yr gainbridge annuity a few months ago at 5.9%. I never thought I’d see that rate again, so I’m jumping at the 6.15!
Are you keeping your total exposure to Gainbridge below your state guaranty fund limit?
I did not know there was a limit, so thank you for mentioning it!

Yes, I will be below the state limit
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Stinky »

poker27 wrote: Sun May 05, 2024 4:14 pm
Stinky wrote: Sun May 05, 2024 2:09 pm
poker27 wrote: Sun May 05, 2024 1:52 pm
While I likely don’t need ‘income’ for several years, I bought a 10yr gainbridge annuity a few months ago at 5.9%. I never thought I’d see that rate again, so I’m jumping at the 6.15!
Are you keeping your total exposure to Gainbridge below your state guaranty fund limit?
I did not know there was a limit, so thank you for mentioning it!

Yes, I will be below the state limit
For you (or anyone else) to be sure of your state limit -

Open up this link: https://www.nolhga.com/policyholderinfo ... ocation/ga

Scroll down to the place where it says “Choose Your State Association”, and enter your state of residence.

Most states lay out their coverage limits on a FAQ page within their website.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by bog007 »

What if I was to put 150000 in 2 different Gainbridge mygas ? Would I be over the limit if state guaranty is 250000
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by tj »

bog007 wrote: Sun May 05, 2024 5:16 pm What if I was to put 150000 in 2 different Gainbridge mygas ? Would I be over the limit if state guaranty is 250000
Of course.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Stinky »

bog007 wrote: Sun May 05, 2024 5:16 pm What if I was to put 150000 in 2 different Gainbridge mygas ? Would I be over the limit if state guaranty is 250000
Your question isn’t totally clear.

If you put $150,000 in total into two Gainbridge MYGAs, you would be within your state limit of $250,000. You could put the same $150k into 1, 2, 3, or however many annuities you want.

But if you put $150k into each of two Gainbridge MYGAs, your total of $300k would be over your state’s limit.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by indexfundfan »

Also, consider the compounding. $200k at 6.15% will exceed $250k in as little as 4 years.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by kd2008 »

Quick question about Gainbridge: is it possible to open an account as IRA and contribute this year's $8000 from a checking account with them?
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Stinky »

kd2008 wrote: Sun May 05, 2024 5:33 pm Quick question about Gainbridge: is it possible to open an account as IRA and contribute this year's $8000 from a checking account with them?
That’s an excellent question that I do not know the answer to.

If you want to pursue it, give Gainbridge a call soon. And then please post your findings back here.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by bog007 »

Ok thought so I have Gainbridge and canvas below limit
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Stinky »

Those who have been following this thread might be interested in the Zoom meeting below, which will be a more general discussion about annuities. FYI, MYGAs are a large part of current annuity sales, at about 50% of the total. All are welcome to join.
-------------------------------------
Please join the Bogleheads Life Stage Chapters on Tues. June 4, 2024, at 8:00 pm ET as we host retired life insurance professional and Bogleheads favorite "Stinky" (aka Wayne) with an online presentation All About Annuities: a primer and complete overview of annuities, what they are, what they do and don't do, what are the negatives, why would we want or need one, which one? and when should we consider buying one, etc.

8:00 pm Eastern | 7:00 pm Central | 6:00 pm Mountain | 5:00 pm Pacific | 2:00 pm Hawaii

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Stinky has over 40 years in senior financial roles in major life insurance companies and is an engaging presenter of these complicated topics. There will be plenty of time for your Q & A and discussion. All Bogleheads are invited - it's never too early to learn about future possibilities :happy

Below is the zoom link for this meeting and the zoom link is also posted on the Bogleheads Calendar of Events. It's not necessary to rsvp for this meeting.

Topic: All About Annuities
Time: Tues. June 4, 2024- 08:00 pm ET (US & Canada)

Join Zoom Meeting -
https://us06web.zoom.us/j/83114632791?p ... mnaHDxRf.1

Meeting ID: 831 1463 2791
Passcode: 812810

Find your local number: https://us06web.zoom.us/u/kcG0nazXVp
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by jhblegend »

Received an email about a new MYGA issued by a company called Revol One Financial, rated B++. 6.00% for 7 years is juicy, but no free withdrawals from what I read in the product highlights. The minimum premium is quite high as well.

Upon further reading, they mention free withdrawals, but only after renewing for a second term. A bit misleading in my opinion.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Stinky »

jhblegend wrote: Wed May 08, 2024 9:14 am Received an email about a new MYGA issued by a company called Revol One Financial, rated B++. 6.00% for 7 years is juicy, but no free withdrawals from what I read in the product highlights. The minimum premium is quite high as well.

Upon further reading, they mention free withdrawals, but only after renewing for a second term. A bit misleading in my opinion.
'
Revol One appears to be a brand new entrant into the MYGA space. Its products are currently offered on the Annuity Advantage platform, but not yet on Blueprint Income or Stan the Annuity Man.

I agree that the minimum size of $50,000 for non-qualified and $25,000 for qualified sales is pretty high.

Per the website, Revol One's product is available in all states except (of course) New York, and (oddly) California and Florida.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by WestWorld1986 »

Has anyone purchased a MYGA from Aspida? I just noticed that they are offering a 5-year term at 6.15%. As they have an A- rating this seems to be fairly attractive.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Stinky »

WestWorld1986 wrote: Sun May 12, 2024 7:37 am Has anyone purchased a MYGA from Aspira? I just noticed that they are offering a 5-year term at 6.15%. As they have an A- rating this seems to be fairly attractive.
I bought from them a couple of years ago.

Their issue process (working through Blueprint Income) was the fastest of any company that I’ve purchased from except for Gainbridge. They seem to be “more online” than many companies.

I’ve had no need for customer service from Aspida, so no comments there.

I’d definitely consider renewing with them when my interest guarantee period expires in 2025.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by GuyInFL »

Stinky wrote: Mon Jul 25, 2022 10:00 am A company named Aspida, a new entrant into the MYGA space, has just posted some of the highest rates out there. Their rates go as high as 4.80% on a 7 year contract and 4.30% on a 3 year contract. Per their website, Aspida is associated with Ares Management, an asset management firm. The insurer is rated A- by AM Best.

Unfortunately, Aspida MYGA products are not currently available in a number of populous states, including CA, TX, NY, and FL, at least per the Blueprint Income website. The company says it is licensed in all states except CT and NY, so maybe they're currently in the policy form filing process in states where they're not currently selling.
Aspida is now available in Florida. It’s at the top of the list, rate-wise, at Blueprint Income site.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by GuyInFL »

Comparing Aspida (A-); 6.15% for 5 years to Canvas (B++); 6.25%
If the amount is well below the state insurance fund limits, it seems like the company rating wouldn't be a significant factor, although I'm sure going through that process wouldn't be much fun if a company went insolvent. I guess that also depends on the state.

Any thoughts on how to quantify the difference?
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by CRC_Volunteer »

GuyInFL wrote: Mon May 13, 2024 6:26 pm Comparing Aspida (A-); 6.15% for 5 years to Canvas (B++); 6.25%
If the amount is well below the state insurance fund limits, it seems like the company rating wouldn't be a significant factor, although I'm sure going through that process wouldn't be much fun if a company went insolvent. I guess that also depends on the state.

Any thoughts on how to quantify the difference?
Please refer to Colorado Bankers Life situation earlier within this thread.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Stinky »

CRC_Volunteer wrote: Mon May 13, 2024 6:31 pm
GuyInFL wrote: Mon May 13, 2024 6:26 pm Comparing Aspida (A-); 6.15% for 5 years to Canvas (B++); 6.25%
If the amount is well below the state insurance fund limits, it seems like the company rating wouldn't be a significant factor, although I'm sure going through that process wouldn't be much fun if a company went insolvent. I guess that also depends on the state.

Any thoughts on how to quantify the difference?
Please refer to Colorado Bankers Life situation earlier within this thread.
I’m aware of a couple of B++ companies that may have ratings downgrades pending. I’ll post about those if/when the downgrades happen.

I’ve been observing the MYGA space pretty closely for about 4 years now. I’ve just about decided that if I buy another MYGA from a B++ company, it will be for a term no longer than 3 years. And I wouldn’t buy anything from a B+ company.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by CRC_Volunteer »

Stinky wrote: Mon May 13, 2024 6:47 pm
CRC_Volunteer wrote: Mon May 13, 2024 6:31 pm
GuyInFL wrote: Mon May 13, 2024 6:26 pm Comparing Aspida (A-); 6.15% for 5 years to Canvas (B++); 6.25%
If the amount is well below the state insurance fund limits, it seems like the company rating wouldn't be a significant factor, although I'm sure going through that process wouldn't be much fun if a company went insolvent. I guess that also depends on the state.

Any thoughts on how to quantify the difference?
Please refer to Colorado Bankers Life situation earlier within this thread.
I’m aware of a couple of B++ companies that may have ratings downgrades pending. I’ll post about those if/when the downgrades happen.

I’ve been observing the MYGA space pretty closely for about 4 years now. I’ve just about decided that if I buy another MYGA from a B++ company, it will be for a term no longer than 3 years. And I wouldn’t buy anything from a B+ company.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by GuyInFL »

CRC_Volunteer wrote: Mon May 13, 2024 6:31 pm
GuyInFL wrote: Mon May 13, 2024 6:26 pm Comparing Aspida (A-); 6.15% for 5 years to Canvas (B++); 6.25%
If the amount is well below the state insurance fund limits, it seems like the company rating wouldn't be a significant factor, although I'm sure going through that process wouldn't be much fun if a company went insolvent. I guess that also depends on the state.

Any thoughts on how to quantify the difference?
Please refer to Colorado Bankers Life situation earlier within this thread.
Thanks.
Good Reading. I read enough to take my risk elsewhere! I think I'll stick with the A- for 0.1% difference.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by shenjiming »

Now it is not 0.1% difference. Canvas 7 yr is 6.55%.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by WestWorld1986 »

shenjiming wrote: Tue May 14, 2024 10:35 am Now it is not 0.1% difference. Canvas 7 yr is 6.55%.
Oh my…. How tempting…
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Weathering »

Stinky wrote: Mon May 13, 2024 6:47 pm I’m aware of a couple of B++ companies that may have ratings downgrades pending. I’ll post about those if/when the downgrades happen.

I’ve been observing the MYGA space pretty closely for about 4 years now. I’ve just about decided that if I buy another MYGA from a B++ company, it will be for a term no longer than 3 years. And I wouldn’t buy anything from a B+ company.
Would you be willing to say if Canvas/Puritan is on the list of B++ companies you think may be downgraded?

Full disclosure: I’m at 40% of my state’s annuity insurance limit and considering going to 80% now that 6.55% is available from Canvas. I’m also 7 years away from 60 and 1/4 years of age, so 7 year MYGAs are best for me. I’ll retire on my 57th birthday (govt job) so the MYGA income won’t be a big tax hit at age 59.5+
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by johnpelder »

Wow, that rate increase from Canvas is pretty bold. I already hold my state limit there, and so far we're very happy with the customer service. I really thought rates were trending down everywhere. One MYGA I hold is with Pillar - got in at 6.35 and it's now down around 4% so the uptick at Canvas really has me puzzled as to where rates are going.

I'd like to thank everyone who contributes info here. It's a great resource with great people.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Stinky »

Weathering wrote: Tue May 14, 2024 9:33 pm Would you be willing to say if Canvas/Puritan is on the list of B++ companies you think may be downgraded?
Puritan Life is not on my list of current downgrade prospects.

Your post caused me to pull up the AM Best rating of Puritan Life. Here’s a link to the rating, which I got to with a simple google search of “am best rating Puritan Life”.

https://ratings.ambest.com/DisclosurePD ... MBNum=7358

I note several things from the rating website -

—- On page 1, it shows that the rating is B++ with a “stable” outlook. That’s a good thing. Most of the time, but not always, a sign that a company might be a downgrade prospect is a change of outlook to “negative”. But a “negative” outlook is not always a precursor to a ratings downgrade.

—- on page 6 is a table of historical default rates by rating category. This table has been referenced several times previously in this thread.

—— Buried way back on Page 15 are the actual rating factors for Puritan Life.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by suginami »

Stinky wrote: Mon May 13, 2024 6:47 pm
CRC_Volunteer wrote: Mon May 13, 2024 6:31 pm
GuyInFL wrote: Mon May 13, 2024 6:26 pm Comparing Aspida (A-); 6.15% for 5 years to Canvas (B++); 6.25%
If the amount is well below the state insurance fund limits, it seems like the company rating wouldn't be a significant factor, although I'm sure going through that process wouldn't be much fun if a company went insolvent. I guess that also depends on the state.

Any thoughts on how to quantify the difference?
Please refer to Colorado Bankers Life situation earlier within this thread.
I’m aware of a couple of B++ companies that may have ratings downgrades pending. I’ll post about those if/when the downgrades happen.

I’ve been observing the MYGA space pretty closely for about 4 years now. I’ve just about decided that if I buy another MYGA from a B++ company, it will be for a term no longer than 3 years. And I wouldn’t buy anything from a B+ company.
Would one possibly be Sentinel Security Life Insurance Company?
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Stinky »

suginami wrote: Wed May 15, 2024 12:44 pm
Stinky wrote: Mon May 13, 2024 6:47 pm
I’m aware of a couple of B++ companies that may have ratings downgrades pending. I’ll post about those if/when the downgrades happen.

I’ve been observing the MYGA space pretty closely for about 4 years now. I’ve just about decided that if I buy another MYGA from a B++ company, it will be for a term no longer than 3 years. And I wouldn’t buy anything from a B+ company.
Would one possibly be Sentinel Security Life Insurance Company?
Sentinel Security Life has a rating of B++, with a “negative” outlook, and its rating is currently “under review”.

Look at pages 1 and 14 of the link below. You can make your own judgment.

https://ratings.ambest.com/DisclosurePD ... MBNum=7040
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by indexfundfan »

I am looking for another preferred MYGA carrier (beside Gainbridge).

Aspida seems to be a good candidate. Does anyone have any experience with the (partial) withdrawal process? Does Aspida process withdrawals promptly? Are payments made electronically (ACH)?
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Stinky »

indexfundfan wrote: Fri May 17, 2024 9:12 am I am looking for another preferred MYGA carrier (beside Gainbridge).

Aspida seems to be a good candidate. Does anyone have any experience with the (partial) withdrawal process? Does Aspida process withdrawals promptly? Are payments made electronically (ACH)?
I have an Aspida policy but haven’t done any partial withdrawals.

As I said upthread, their issue process was among the fastest I’ve experienced. I kind of expect the partial withdrawal process will be the same.

I’d encourage you to call their customer service line to ask about ACH and withdrawal times.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Rajsx »

Fidelity deals with better/best rated MYGA companies only but the rates elsewhere are much better. I am tempted & looking into a 3 yr, $250k MYGA & think the risk may be negligible.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by soretired »

Rajsx wrote: Fri May 17, 2024 6:18 pm Fidelity deals with better/best rated MYGA companies only but the rates elsewhere are much better. I am tempted & looking into a 3 yr, $250k MYGA & think the risk may be negligible.
Why wait? Rates will not be going higher.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by tj »

soretired wrote: Fri May 17, 2024 8:24 pm
Rajsx wrote: Fri May 17, 2024 6:18 pm Fidelity deals with better/best rated MYGA companies only but the rates elsewhere are much better. I am tempted & looking into a 3 yr, $250k MYGA & think the risk may be negligible.
Why wait? Rates will not be going higher.
If one believes that, why not lock in the high rates for 10 years?
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Stinky »

tj wrote: Fri May 17, 2024 8:53 pm
soretired wrote: Fri May 17, 2024 8:24 pm
Rajsx wrote: Fri May 17, 2024 6:18 pm Fidelity deals with better/best rated MYGA companies only but the rates elsewhere are much better. I am tempted & looking into a 3 yr, $250k MYGA & think the risk may be negligible.
Why wait? Rates will not be going higher.
If one believes that, why not lock in the high rates for 10 years?
Nobody knows nothing.

Rates going higher? Rates going lower? Who knows?
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by tj »

Stinky wrote: Fri May 17, 2024 9:18 pm
tj wrote: Fri May 17, 2024 8:53 pm
soretired wrote: Fri May 17, 2024 8:24 pm
Rajsx wrote: Fri May 17, 2024 6:18 pm Fidelity deals with better/best rated MYGA companies only but the rates elsewhere are much better. I am tempted & looking into a 3 yr, $250k MYGA & think the risk may be negligible.
Why wait? Rates will not be going higher.
If one believes that, why not lock in the high rates for 10 years?
Nobody knows nothing.

Rates going higher? Rates going lower? Who knows?
I agree, but the person I quoted suggested they definitely are not going higher, so if that's a scenario that you believe to be certain, why wouldn't you lock in a 6%+ rate for 10 years and milk it as long as you can?
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Stinky »

tj wrote: Fri May 17, 2024 9:54 pm
Stinky wrote: Fri May 17, 2024 9:18 pm
tj wrote: Fri May 17, 2024 8:53 pm
soretired wrote: Fri May 17, 2024 8:24 pm
Rajsx wrote: Fri May 17, 2024 6:18 pm Fidelity deals with better/best rated MYGA companies only but the rates elsewhere are much better. I am tempted & looking into a 3 yr, $250k MYGA & think the risk may be negligible.
Why wait? Rates will not be going higher.
If one believes that, why not lock in the high rates for 10 years?
Nobody knows nothing.

Rates going higher? Rates going lower? Who knows?
I agree, but the person I quoted suggested they definitely are not going higher, so if that's a scenario that you believe to be certain, why wouldn't you lock in a 6%+ rate for 10 years and milk it as long as you can?
Yes, if I knew for sure that rates aren’t going higher over the next 10 years, I’d consider locking in for 10 years.

But I’d tend toward a company rated “A” or better to do that with. In my state, the best current rate for a 10 year MYGA from a company rated A or better is Oceanview at 5.55%.
Retired life insurance company financial executive who sincerely believes that ”It’s a GREAT day to be alive!”
tj
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by tj »

Stinky wrote: Sat May 18, 2024 3:26 am
tj wrote: Fri May 17, 2024 9:54 pm
Stinky wrote: Fri May 17, 2024 9:18 pm
tj wrote: Fri May 17, 2024 8:53 pm
soretired wrote: Fri May 17, 2024 8:24 pm

Why wait? Rates will not be going higher.
If one believes that, why not lock in the high rates for 10 years?
Nobody knows nothing.

Rates going higher? Rates going lower? Who knows?
I agree, but the person I quoted suggested they definitely are not going higher, so if that's a scenario that you believe to be certain, why wouldn't you lock in a 6%+ rate for 10 years and milk it as long as you can?
Yes, if I knew for sure that rates aren’t going higher over the next 10 years, I’d consider locking in for 10 years.

But I’d tend toward a company rated “A” or better to do that with. In my state, the best current rate for a 10 year MYGA from a company rated A or better is Oceanview at 5.55%.
You wouldn't feel safe with Gainbridge for 10 years? :D
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Stinky
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Stinky »

tj wrote: Sat May 18, 2024 9:00 am
Stinky wrote: Sat May 18, 2024 3:26 am
Yes, if I knew for sure that rates aren’t going higher over the next 10 years, I’d consider locking in for 10 years.

But I’d tend toward a company rated “A” or better to do that with. In my state, the best current rate for a 10 year MYGA from a company rated A or better is Oceanview at 5.55%.
You wouldn't feel safe with Gainbridge for 10 years? :D
To be honest, I've not focused on any products beyond 7 years, because that doesn't fit my desired investment horizon. So purchasing a 10 year annuity isn't on my radar.

And, as I expect that I've said previously in this thread, I am a Gainbridge policyholder, with about 4 years left to go on my initial interest guarantee period.
Retired life insurance company financial executive who sincerely believes that ”It’s a GREAT day to be alive!”
Bronco Billy
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Bronco Billy »

Stinky wrote: Sun May 05, 2024 2:09 pm Are you keeping your total exposure to Gainbridge below your state guaranty fund limit?
Stinky I started with $176k and now is $247k. It time to renew and the total will be above the state guaranty rate $250k in okla. pretty quick. If the company defaults is the max you get is $250k? How can you reduce the amount if you are doing a 1035 exchange? Can you split it into 2 myga or take a little less and make sure you go with A+ company.
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Stinky »

Bronco Billy wrote: Sat May 18, 2024 9:56 am
Stinky wrote: Sun May 05, 2024 2:09 pm Are you keeping your total exposure to Gainbridge below your state guaranty fund limit?
Stinky I started with $176k and now is $247k. It time to renew and the total will be above the state guaranty rate $250k in okla. pretty quick. If the company defaults is the max you get is $250k? How can you reduce the amount if you are doing a 1035 exchange? Can you split it into 2 myga or take a little less and make sure you go with A+ company.
You’re covered by your state guaranty fund up to $250k of surrender value. Above that, you’d be an unsecured creditor of a bankrupt insurance company, and whether there would be recovery of any type above $250k would depend on the facts and circumstances of the particular bankruptcy.

I expect that you could do a partial 1035 exchange to another company, renewing the remainder with Gainbridge, thereby spreading your risk over two companies. You’d want to be in touch with an agency like Blueprint, Stan, etc to talk through how to accomplish that.
Retired life insurance company financial executive who sincerely believes that ”It’s a GREAT day to be alive!”
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