Purchasing MYGAs (multi year guaranteed annuities) - mega thread

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

Post by jhblegend »

geetzromo123 wrote: Wed Jul 10, 2024 12:45 am I'm wondering if anyone actually knows why this would be so?
Stinky can probably speak more eloquently on this. But states like NY and CA have more onerous regulations (and life insurance is regulated at the state level.) So what is occurring is likely a combination of A. Not all companies are willing to issue new business in the state due to the regulation, leading to less competition and B. Those that do may offer a lower rate to maintain equivalent profitability, again due to the excess regulations when compared to other states.
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MrM1
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by MrM1 »

TheNightsToCome wrote: Tue Jul 09, 2024 7:20 pm What was your experience with Gainbridge? Will I need to jump through any other hoops, or will the app go through after the microdeposit exercise? Will Gainbridge email me if the app is stalled, and will they contact me when/if the contract is active?

Thanks.
My recent experience with Gainbridge was very positive
- I have 2 annuities with them, both opened one after the other in the past 5 weeks
- The last one opened was over the July 4th week
- I did the application on Friday Jun 28th
- Got an email that the app was submitted and under review
- Got one saying it was completed and saying that the funds had transferred. That one email informed me that interest would begin crediting from the day Gainbridge received the funds
- Got a final email welcoming me and letting me know the account was active
- The entire process took about 12 day even over a weekend and the 4th holiday (the first annuity opened faster due to no holidays and took about 8 days)

For the first Annuity I used bank transfer via ACH. Micro deposits occurred. But they Do NOT email you that the micro deposits are in the checking account. You have to keep checking. I am glad they do not. Security and all. And I have never had any institution email me that micro deposits have been submitted. Not Schwab, Wealthfront, Fidelity or Apmex. I used Plaid for the 2nd annuity. Much easier and faster, but the set up time was the slightly longer due to the holiday week.

You can log in to your account at Gainbridge anytime and it will indicate the status of the application or if it is open and active.

I know for sure once your annuity goes active with them, you will get an email. I know the funds pulled from my account pretty quick, but I did not get an immediate notification from them that the funds had transferred and it took a few days after I saw it was pulled from my checking to actually hear from them. But in the end ... it all went well and took about 8-12 days

The application process at Canvas was more like a typical annuity contract that you would open with an agent at your dinning room table. Lots of back and forth and ID pic scans and signatures and approvals etc. With Gainbridge the application process was so easy and non involved that I am surprised it does not require more info. But mine are open and growing. So ... so good so far.

I have dealt with Annuities at American Equity, Silac, Gleaner, Midland, Shenandoah Life and Canvas. Of all those, I have liked Gainbridge's process, and I REALLY like their Web Interface and Info the best of any I have had experience with. IMHO ... so far ... and my experience is very limited with Gainbridge ... but I like their process so far probably the best.

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

Post by Stinky »

geetzromo123 wrote: Wed Jul 10, 2024 12:45 am I apologize if this question has been answered earlier, but here goes... I've noticed over the years that the very highest paying MYGAs are most often not available for sale in my state - California. This is currently the case with the two highest yielding MYGAs shown on Annuity Advantage for 5 yrs: American Life & Security Corp (B++) @ 5.96% and the AmFirst Insurance Company (A-) @ 5.95%. I'm wondering if anyone actually knows why this would be so?
No this hasn’t been discussed upthread.

I’ll give you answers for both companies. They are both conjectures on my part.

On American Life - it appears that they aren’t licensed in anywhere near all states. I can’t buy from American Life in Alabama; I checked Massachusetts and Vermont and they don’t sell there either. I don’t have a good way to check out all the states where they don’t sell, but I think it’s more than a few.

I wouldn’t know if American Life is actively trying to expand to other states. Only the company would know that, and the people who know likely aren’t on the front line if you were to call the company.

On AmFirst - the company is widely licensed per their website, so they cross that hurdle. California is listed as a state where they are licensed to write insurance.

The policy forms for every product need to be approved by the state insurance regulators for each state. I can buy AmFirst in Alabama.

I know from personal experience that California is slower to approve policy forms than most states. I also believe that AmFirst has just recently begun writing MYGAs. So I speculate that AmFirst has filed policy forms with the California insurance Department (and every other state where they’re licensed), but California hasn’t approved the forms yet.

Pure speculation on my part. But I hope it’s close to the truth.
Retired life insurance company financial executive who sincerely believes that ”It’s a GREAT day to be alive!”
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CRC_Volunteer
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by CRC_Volunteer »

A list of who can write Life and Annuity Insurance in California:

https://www.insurance.ca.gov/01-consume ... /index.cfm
"Let me explain. No, there is too much. Let me sum up." (Inigo Montoya) | | 65/30/05 | 53% VTSAX | 12% VTIAX | 30% VAIPX | 5% CASH
TheNightsToCome
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by TheNightsToCome »

MrM1 wrote: Wed Jul 10, 2024 8:07 am
TheNightsToCome wrote: Tue Jul 09, 2024 7:20 pm What was your experience with Gainbridge? Will I need to jump through any other hoops, or will the app go through after the microdeposit exercise? Will Gainbridge email me if the app is stalled, and will they contact me when/if the contract is active?

Thanks.
My recent experience with Gainbridge was very positive
- I have 2 annuities with them, both opened one after the other in the past 5 weeks
- The last one opened was over the July 4th week
- I did the application on Friday Jun 28th
- Got an email that the app was submitted and under review
- Got one saying it was completed and saying that the funds had transferred. That one email informed me that interest would begin crediting from the day Gainbridge received the funds
- Got a final email welcoming me and letting me know the account was active
- The entire process took about 12 day even over a weekend and the 4th holiday (the first annuity opened faster due to no holidays and took about 8 days)

For the first Annuity I used bank transfer via ACH. Micro deposits occurred. But they Do NOT email you that the micro deposits are in the checking account. You have to keep checking. I am glad they do not. Security and all. And I have never had any institution email me that micro deposits have been submitted. Not Schwab, Wealthfront, Fidelity or Apmex. I used Plaid for the 2nd annuity. Much easier and faster, but the set up time was the slightly longer due to the holiday week.

You can log in to your account at Gainbridge anytime and it will indicate the status of the application or if it is open and active.

I know for sure once your annuity goes active with them, you will get an email. I know the funds pulled from my account pretty quick, but I did not get an immediate notification from them that the funds had transferred and it took a few days after I saw it was pulled from my checking to actually hear from them. But in the end ... it all went well and took about 8-12 days

The application process at Canvas was more like a typical annuity contract that you would open with an agent at your dinning room table. Lots of back and forth and ID pic scans and signatures and approvals etc. With Gainbridge the application process was so easy and non involved that I am surprised it does not require more info. But mine are open and growing. So ... so good so far.

I have dealt with Annuities at American Equity, Silac, Gleaner, Midland, Shenandoah Life and Canvas. Of all those, I have liked Gainbridge's process, and I REALLY like their Web Interface and Info the best of any I have had experience with. IMHO ... so far ... and my experience is very limited with Gainbridge ... but I like their process so far probably the best.

YMMV
Mike
:happy
Thank you for the perspective.

I rec'd this email from Gainbridge today:

"This confirms your banking has been verified. The system will pull the requested premium in the next 24-48 hours. We will send you an email once we receive the funds."
Bronco Billy
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Sentinel MYGA annuity

Post by Bronco Billy »

I have a 5 yr MYGA bought with Non Qualifed cash. It has been renew once and the interest is up to $73K. I did call a couple of places and was told i could do 1035 to 2 different annuities. I forgot to ask if this would create a Taxable event. I have filled out the form to get my money but had a couple questions and been trying to call Sentinel 800-247-1423 all day and the call could not be completed at this time! This is a great place to learn but reading a while back about Sentinel being downgraded my mind was starting to think its TOO late. :happy I finally found Sentinel another number this after noon 801-478-4026 that got me to a live person and she answered my questions. My health is not the greatest so looking at taking the money to pay the tax now instead of doing another 5 years and adding another $80k in interest for my wife to figure out what to do. I did take wife to meet the Fido Rep in OKC but all they wanted to push was a SPIA. I am a MYGA person.

I have not emailed Sentinel the form yet and will still look at my options. My plan was to take my FREE 10% each year to spread out the interest it has made but just never took it out. Any input on what you would do please let me know. BB
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MrM1
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Re: Sentinel MYGA annuity

Post by MrM1 »

Bronco Billy wrote: Wed Jul 10, 2024 2:43 pm I have not emailed Sentinel the form yet and will still look at my options. My plan was to take my FREE 10% each year to spread out the interest it has made but just never took it out. Any input on what you would do please let me know. BB
Have you looked at the Gainbridge FastBreak Annuity? 6.15% from an A- AM Best rated company. 10% annual withdraw. And You pay the taxes annually.
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Stinky
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Re: Sentinel MYGA annuity

Post by Stinky »

Bronco Billy wrote: Wed Jul 10, 2024 2:43 pm I have a 5 yr MYGA bought with Non Qualifed cash. It has been renew once and the interest is up to $73K. I did call a couple of places and was told i could do 1035 to 2 different annuities. I forgot to ask if this would create a Taxable event. I have filled out the form to get my money but had a couple questions and been trying to call Sentinel 800-247-1423 all day and the call could not be completed at this time! This is a great place to learn but reading a while back about Sentinel being downgraded my mind was starting to think its TOO late. :happy I finally found Sentinel another number this after noon 801-478-4026 that got me to a live person and she answered my questions. My health is not the greatest so looking at taking the money to pay the tax now instead of doing another 5 years and adding another $80k in interest for my wife to figure out what to do. I did take wife to meet the Fido Rep in OKC but all they wanted to push was a SPIA. I am a MYGA person.

I have not emailed Sentinel the form yet and will still look at my options. My plan was to take my FREE 10% each year to spread out the interest it has made but just never took it out. Any input on what you would do please let me know. BB
I’m sorry that you’re having issues with your health.

A 1035 exchange will not create taxable income. Rather, it will continue the deferral of taxable income into the new annuity.

I expect that you have only a limited amount of time to make a decision on your Sentinel annuity before it auto renews into a new guarantee period and surrender charge. You’ll want to look at your contract to make sure what the renewal provisions are. You should also get a letter from Sentinel laying out your options.

I hope this is helpful. Post back with questions.
Retired life insurance company financial executive who sincerely believes that ”It’s a GREAT day to be alive!”
bogles the mind
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by bogles the mind »

Can a Vanguard settlement fund be used to buy a MYGA or do the funds first need to be transferred to a bank account?
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Stinky
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Stinky »

bogles the mind wrote: Wed Jul 10, 2024 4:39 pm Can a Vanguard settlement fund be used to buy a MYGA or do the funds first need to be transferred to a bank account?
I’ve purchased MYGAs with direct transfers from my Vanguard IRA settlement fund.

If that can be done with qualified annuities, I expect it can also be done with taxable annuities.
Retired life insurance company financial executive who sincerely believes that ”It’s a GREAT day to be alive!”
footyman
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by footyman »

I am going through right now with Vanguard. I used an agent to set my Annuity up and the only road block I had was getting the money out of my taxable settlement fund. All the forms for the annuity application were done electronically but Vanguard wanted the request for funds notarized.

I therefore moved my money out of the settlement fund to my bank account and wrote a check from there. This has added about a week and a half on to the process.
bogles the mind
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by bogles the mind »

Thanks guys. Probably easier to move it first and avoid the trouble.
Bronco Billy
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Re: Sentinel MYGA annuity

Post by Bronco Billy »

Thanks MrM1 for your reply. It sounds like a great annuity but can you EXPLAIN what you mean about " You pay the taxes annually" ? I would assume you are talking about if you take the 10% withdrawl each yr you would pay the takes on that amount each year.

Like I said I was ALWAYS going to take the Free 10% to spread out the interest earned each year. For those have taken the free 10% do you send a form to Gainbridge or work with the company yourself?

Thanks again BB


MrM1 wrote: Wed Jul 10, 2024 2:55 pm
Bronco Billy wrote: Wed Jul 10, 2024 2:43 pm I have not emailed Sentinel the form yet and will still look at my options. My plan was to take my FREE 10% each year to spread out the interest it has made but just never took it out. Any input on what you would do please let me know. BB
Have you looked at the Gainbridge FastBreak Annuity? 6.15% from an A- AM Best rated company. 10% annual withdraw. And You pay the taxes annually.
Bronco Billy
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Re: Sentinel MYGA annuity

Post by Bronco Billy »

Yes, Stinky you are correct. There is a 30 day window to make the decision and the form has to be them by July 31, 2024. They do make easier to just email the form to them. This form lets you choose what option you want and how much in taxes you want withheld. If you decided to do a 1035 exchange once you call the new company does it take for them to file the paperwork? It says that the 1035 tranfer/exchange MUST be there before the contract anniversity.

BB
Stinky wrote: Wed Jul 10, 2024 4:17 pm
I expect that you have only a limited amount of time to make a decision on your Sentinel annuity before it auto renews into a new guarantee period and surrender charge. You’ll want to look at your contract to make sure what the renewal provisions are. You should also get a letter from Sentinel laying out your options.

Post back with questions.
tj
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Re: Sentinel MYGA annuity

Post by tj »

Bronco Billy wrote: Wed Jul 10, 2024 5:40 pm Thanks MrM1 for your reply. It sounds like a great annuity but can you EXPLAIN what you mean about " You pay the taxes annually" ? I would assume you are talking about if you take the 10% withdrawl each yr you would pay the takes on that amount each year.

Like I said I was ALWAYS going to take the Free 10% to spread out the interest earned each year. For those have taken the free 10% do you send a form to Gainbridge or work with the company yourself?

Thanks again BB


MrM1 wrote: Wed Jul 10, 2024 2:55 pm
Bronco Billy wrote: Wed Jul 10, 2024 2:43 pm I have not emailed Sentinel the form yet and will still look at my options. My plan was to take my FREE 10% each year to spread out the interest it has made but just never took it out. Any input on what you would do please let me know. BB
Have you looked at the Gainbridge FastBreak Annuity? 6.15% from an A- AM Best rated company. 10% annual withdraw. And You pay the taxes annually.
Go to the Gainbridge website and read about the FastBreak product....it should answer your questions, it has nothing to do with the 10% withdrawal.
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MrM1
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Re: Sentinel MYGA annuity

Post by MrM1 »

Bronco Billy wrote: Wed Jul 10, 2024 5:40 pm Thanks MrM1 for your reply. It sounds like a great annuity but can you EXPLAIN what you mean about " You pay the taxes annually" ? I would assume you are talking about if you take the 10% withdrawl each yr you would pay the takes on that amount each year.
The 10% withdrawal, and the annual taxability of the interest earned are two separate features of the FastBreak. It's kind of unique as I've not seen an annuity product that had this feature where you pay the taxes on the growth annually. But that has nothing to do with the availability of the 10% withdrawal. I was just listening 2 separate features.

As was said above, visit the gainbridge website and you can see the difference between their FastBreak and their SteadyPace annuity.

I just thought if you were trying to deal with the taxes regularly because of your health conditions that might be a unique feature for you.
Bronco Billy
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Re: Purchasing MYGAs (multi year guaranteed annuities) - mega thread

Post by Bronco Billy »

Thanks to all for your replys!! BB
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