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Old 10-18-2008, 06:13 PM   #21
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Not sure if this is an endorsement or not but the US Government TSP retirement plan uses MetLife for it's annuity option.
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Old 10-18-2008, 06:57 PM   #22
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Not sure if this is an endorsement or not but the US Government TSP retirement plan uses MetLife for it's annuity option.
Might put them first in line to be absorbed into the Government bank.

As an aside, I just closed out a MetLife money market account (not FDIC insured). They paid well above any of my other MM accounts, but I won't take the risk for the extra percent or two.
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Old 10-18-2008, 07:02 PM   #23
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Not sure if this is an endorsement or not but the US Government TSP retirement plan uses MetLife for it's annuity option.
it's a fact, not an endorsement. i hold such an annuity.
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Old 10-18-2008, 07:13 PM   #24
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Can the withdrawal phase be deferred for the full 10 yrs, or is it like an immediate annuity that pays out over 10 yrs and there's no principal left at the end?
It is not an immediate payout annuity, although you can take out some each year if you want to. You also have the option of taking just the interest from the previous year. If you don't need to withdraw, then you can leave the entire amount in for the guaranteed period (10 years in this case) and draw interest on each year's balance. At least, that's what the Fidelity rep told me. We haven't received any actual paperwork yet.

I think Metlife is probably trying to raise cash, thus the great rates.
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Old 10-29-2008, 06:23 AM   #25
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It is not an immediate payout annuity, although you can take out some each year if you want to. You also have the option of taking just the interest from the previous year. If you don't need to withdraw, then you can leave the entire amount in for the guaranteed period (10 years in this case) and draw interest on each year's balance. At least, that's what the Fidelity rep told me. We haven't received any actual paperwork yet.

I think Metlife is probably trying to raise cash, thus the great rates.
I was talking with my Fidelity Rep the other day concerning CD's and Bond ladders and he pointed me toward the same MetLife fixed annuities listing that you are talking about. He also told me the same information. 6.75 for 10 years seems like a great rate. I am also requesting additional information today. I also like the other rates that MetLife offers for shorter terms and am thinking perhaps a ladder would also offer further protection. By the way, have you tried to ascertain the Insurance coverage in your state on this MetLife annuity?
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Old 10-29-2008, 09:58 AM   #26
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By the way, have you tried to ascertain the Insurance coverage in your state on this MetLife annuity?
We are covered for $100,000 per company. There are a couple of other companies offering rates close to MetLife and we are considering the idea of spreading the money between them.

We have received our information from Fidelity/MetLife and everything seems to be just as we were told. We are almost ready to pull the trigger!
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Old 10-30-2008, 09:02 AM   #27
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MetLife fixed annuities listing...6.75 for 10 years seems like a great rate.
some historical data to use as a comparison...

July 2007
5.25 % interest, fixed immediate annuity (conversion of TSP via MetLife's contract with OPM)
Lifetime rate, single annuitant (no survivors)

if memory serves, market was relatively strong in July 2007.

again, i am not recommending annuities. just providing data.
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Old 10-30-2008, 04:01 PM   #28
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Originally Posted by freebird5825 View Post
some historical data to use as a comparison...

July 2007
5.25 % interest, fixed immediate annuity (conversion of TSP via MetLife's contract with OPM)
Lifetime rate, single annuitant (no survivors)

if memory serves, market was relatively strong in July 2007.

again, i am not recommending annuities. just providing data.
What's different now is that the insurance companies are trying to recapitalize. They are assuming that giving good rates for immediate annuities is cheaper than going into the market place for funding. It also says they are in financial trouble. How much we don't know.
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Old 10-30-2008, 05:02 PM   #29
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What's different now is that the insurance companies are trying to recapitalize. They are assuming that giving good rates for immediate annuities is cheaper than going into the market place for funding. It also says they are in financial trouble. How much we don't know.
Today the Hartford stock was down 60%. I wonder what that is all about. They are the company AARP uses (or pushes on their membership). I think you may be right but we will find out eventually, the problem it will probably be "after the fact" and earlier.
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Old 10-31-2008, 04:57 PM   #30
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I am about to invest in the Metlife tax deferred annuity using the 10 yr @6.75% rate. My Fidelity Broker told me that there has been an overwhelming response to this rate and MetLife will reduce it next Wednesday. I hope to get in on Monday. I have had my home, auto, life ins with them for years, have had claims on auto, and have never had a problem. They were so easy to deal with. They are well rated by AM Best and S& P. I just do not think this is that big of a risk and certainly is a lesser risk than investing in individual investment grade corporate bonds. In addition, the State of Ohio covers insurance annuities up to $200M per depositer...so I'm told...I still need to verify that.
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Old 11-01-2008, 05:39 AM   #31
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Old 11-01-2008, 12:53 PM   #32
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I am about to invest in the Metlife tax deferred annuity using the 10 yr @6.75% rate. My Fidelity Broker told me that there has been an overwhelming response to this rate and MetLife will reduce it next Wednesday. I hope to get in on Monday. I have had my home, auto, life ins with them for years, have had claims on auto, and have never had a problem. They were so easy to deal with. They are well rated by AM Best and S& P. I just do not think this is that big of a risk and certainly is a lesser risk than investing in individual investment grade corporate bonds. In addition, the State of Ohio covers insurance annuities up to $200M per depositer...so I'm told...I still need to verify that.
You can get much higher returns in AAA preferred stocks. The "guarantee" is the willingness of the Federal government to put cash into companies to prevent their failure. You can get the ETF for all preferred stocks by buying PFF. The yield is right at 9%.
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