Join Early Retirement Today
Closed Thread
 
Thread Tools Display Modes
Old 07-17-2022, 07:15 AM   #981
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2003
Location: Florida's First Coast
Posts: 7,666
Quote:
Originally Posted by Earl E Retyre View Post
If I could lock in 4.5% for 5 years, I would be thrilled!! Problem is that I have never even heard of MYGAs until now and am worried that it is not federally insured like CDs. So, I am waiting in the hopes that CDs rise just a little bit more. 5 year CDs are at 3.5%, so just 1 more percent. I am assuming for an MYGA to lose money that the underlying insurance company would have to go belly up. Don’t know what type of events would need to occur for that to happen. But sounds a little risky to me.
We were like you also, until we researched them. In Florida they are guaranteed by the State's Guarantee Association up to $250k per contract per company per person. All companies that sell in Florida have to be members of and pay into them. But there are so very few Life insurance companies that have required a payment by them. I called them when I was doing my DD on MYGAs. Think of all the folks that have Life Annuities (SPIAs or SPDAs with them getting payments for life. We still stick to companies that are A rated or above, although with the Guarantee you really do not have to, B++ would be OK. Not really much different from Corporate Bonds, the Stock Market, etc, but with a State Guarantee that those do not enjoy.

Call Stan and char to him, he will answer all of your questions and concerns.

https://www.stantheannuityman.com/myga-rates
__________________
"Never Argue With a Fool, Onlookers May Not Be Able To Tell the Difference." - Mark Twain
ShokWaveRider is offline  
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 07-17-2022, 07:33 AM   #982
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,266
Quote:
Originally Posted by Earl E Retyre View Post
If I could lock in 4.5% for 5 years, I would be thrilled!! Problem is that I have never even heard of MYGAs until now and am worried that it is not federally insured like CDs. So, I am waiting in the hopes that CDs rise just a little bit more. 5 year CDs are at 3.5%, so just 1 more percent. I am assuming for an MYGA to lose money that the underlying insurance company would have to go belly up. Don’t know what type of events would need to occur for that to happen. But sounds a little risky to me.
Actually, IMO its not very risky at all, but it is more risky than FDIC insured accounts which are credit risk free.

Insurers have reserves and surplus and are closely regulated. Not only are insurer insolvencies rare, policyholders losing money is even rarer. Unless state insurance regulators are sleeping, their surveliance practices should flag troubled insurers and they take the keys long before policyholder money is at risk. When I was working in the industry it was said that no annuity polcyholder had ever lost a penny of principal or of guaranteed interest... in some cases they might not have received the contractual rate of interest but did receive their principal and the guaranteed rate of interest... and those instances would be very, very rare.

Commonly, once a regulator takes over they sell/transfer blocks of policies to healthy insurers... the blocks of business that they can't sell are usually really bad.

And on top of that there are guaranty funds for each state that function similar to FDIC insurance to fill in any gaps.

I would view an MYGA from a highly rated insurer as being of similar risk to a AAA or AA rated corporate bond. YMMV.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56
pb4uski is offline  
Old 07-17-2022, 10:12 AM   #983
Full time employment: Posting here.
 
Join Date: Sep 2008
Posts: 999
Quote:
Originally Posted by pletal View Post
Gotta love it. I based my retirement on a 2.5 percent return over 35 years! I may go 10 years on some of my MYGA purchase even if it’s a little lower return.

Same. Even ran my ret. at a 0% return. So 2-3-4% is fine.
The only thing I have to do is not lose any $$$. LOL LOL
__________________
"I couldn't wait for success, so I went ahead without it." Ret. 2013 @ 51.
almost there is offline  
Old 07-17-2022, 10:22 AM   #984
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,309
Quote:
Originally Posted by Earl E Retyre View Post
If I could lock in 4.5% for 5 years, I would be thrilled!! Problem is that I have never even heard of MYGAs until now and am worried that it is not federally insured like CDs.


There are many of us here that had the same concern, especially after hearing so many times that ALL annuities are bad. I even started a thread to help understand the product and process.

That’s not to say CD’s won’t hit your target rate in the future but you may also need options to stay within insurance limits. Some of the MYGA issuers are very well known but several are obscure.

Starting MYGA Investment
https://www.early-retirement.org/for....php?p=2511133
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
jazz4cash is offline  
Old 07-18-2022, 04:48 AM   #985
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
JoeWras's Avatar
 
Join Date: Sep 2012
Posts: 11,701
Quote:
Originally Posted by jazz4cash View Post
There are many of us here that had the same concern, especially after hearing so many times that ALL annuities are bad. I even started a thread to help understand the product and process.
It is like saying all food is bad. We have raw food, cooked food, processed food, and so on.

MYGAs kind of stand alone in the world of annuities.

My dad got a few in the 2000s and I was a bit alarmed, until I studied and found out how an MYGA works. Sure, there's always a risk with a non FDIC insured product, but it is pretty low when you have well known companies.

I have to say when we inherited the MYGA in 2014 after dad passed, and rates had cratered, I appreciated the option to "let it ride" for 5 more years at 5% interest. The 5 year window also allowed me to dump the earnings in my post-retirement year. The interest deferral action is something you have to learn to manage.

Oh, one more thing: the options available to us on inheriting it were diverse and confusing. This is where MYGAs get nearly as complicated as some of the other annuity products.
__________________
Retired Class of 2018


JoeWras is offline  
Old 07-18-2022, 09:02 AM   #986
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,309
Penfed Premium Online Savings up to 1%.

I know members here waiting for them to offer 4% 5yr CDs. That may come soon but I think they are still hurting from those 5% 10yr CDs.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
jazz4cash is offline  
Old 07-19-2022, 06:24 AM   #987
Thinks s/he gets paid by the post
 
Join Date: Feb 2007
Location: Upstate
Posts: 2,948
NASA FCU just upped their 9 month CD rate to 2.50%, early withdraw penalty 182 days.

This presents a quandary for me. I am starting to think/plan a move after I retire (the 2nd time) next year. I doubt I will be ready before April, but also have a desire to be flexible just in case something (house/property) in the new location comes along. While I am about 50% cash overall, a lot of that is in tax-deferred accounts and therefore not readily available. (When I started moving towards cash late last year/early this year, I did it mostly in tax-deferred accounts as no tax consequence and I could avoid taking large long-term capital gains.)

So while the 2.5% is tempting, and I already have an account there (which makes it easy), I need to think this out before jumping on it...and maybe just stick with "high" yielding savings/checking.
copyright1997reloaded is offline  
Old 07-19-2022, 06:28 AM   #988
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2003
Location: Florida's First Coast
Posts: 7,666
Quote:
Originally Posted by copyright1997reloaded View Post
NASA FCU just upped their 9 month CD rate to 2.50%, early withdraw penalty 182 days.

This presents a quandary for me. I am starting to think/plan a move after I retire (the 2nd time) next year. I doubt I will be ready before April, but also have a desire to be flexible just in case something (house/property) in the new location comes along. While I am about 50% cash overall, a lot of that is in tax-deferred accounts and therefore not readily available. (When I started moving towards cash late last year/early this year, I did it mostly in tax-deferred accounts as no tax consequence and I could avoid taking large long-term capital gains.)

So while the 2.5% is tempting, and I already have an account there (which makes it easy), I need to think this out before jumping on it...and maybe just stick with "high" yielding savings/checking.
I would wait till the end of the month before pulling any triggers.
__________________
"Never Argue With a Fool, Onlookers May Not Be Able To Tell the Difference." - Mark Twain
ShokWaveRider is offline  
Old 07-19-2022, 06:41 AM   #989
Full time employment: Posting here.
wrigley's Avatar
 
Join Date: Nov 2008
Location: Jacksonville
Posts: 637
Quote:
Originally Posted by copyright1997reloaded View Post
NASA FCU just upped their 9 month CD rate to 2.50%, early withdraw penalty 182 days.

This presents a quandary for me. I am starting to think/plan a move after I retire (the 2nd time) next year. I doubt I will be ready before April, but also have a desire to be flexible just in case something (house/property) in the new location comes along. While I am about 50% cash overall, a lot of that is in tax-deferred accounts and therefore not readily available. (When I started moving towards cash late last year/early this year, I did it mostly in tax-deferred accounts as no tax consequence and I could avoid taking large long-term capital gains.)

So while the 2.5% is tempting, and I already have an account there (which makes it easy), I need to think this out before jumping on it...and maybe just stick with "high" yielding savings/checking.
Minimum $10,000 with this add on:

"Credit Union reserves the right to limit deposits into this special certificate."

Mike
wrigley is offline  
Old 07-19-2022, 06:50 AM   #990
Thinks s/he gets paid by the post
 
Join Date: Jul 2013
Posts: 1,879
Quote:
Originally Posted by copyright1997reloaded View Post
NASA FCU just upped their 9 month CD rate to 2.50%, early withdraw penalty 182 days.

This presents a quandary for me. I am starting to think/plan a move after I retire (the 2nd time) next year. I doubt I will be ready before April, but also have a desire to be flexible just in case something (house/property) in the new location comes along. While I am about 50% cash overall, a lot of that is in tax-deferred accounts and therefore not readily available. (When I started moving towards cash late last year/early this year, I did it mostly in tax-deferred accounts as no tax consequence and I could avoid taking large long-term capital gains.)

So while the 2.5% is tempting, and I already have an account there (which makes it easy), I need to think this out before jumping on it...and maybe just stick with "high" yielding savings/checking.
If you decide to made such a short-term investment, the 6 month treasury is at 3%
mrfeh is offline  
Old 07-19-2022, 08:04 AM   #991
Thinks s/he gets paid by the post
John Galt III's Avatar
 
Join Date: Oct 2008
Posts: 2,782
Quote:
Originally Posted by jazz4cash View Post
Penfed Premium Online Savings up to 1%.

I know members here waiting for them to offer 4% 5yr CDs. That may come soon but I think they are still hurting from those 5% 10yr CDs.
Wow. I must have missed the 10 year 5% CDs. When was that?
John Galt III is offline  
Old 07-19-2022, 08:45 AM   #992
Full time employment: Posting here.
 
Join Date: May 2010
Posts: 659
Citizens Access

Our Online Savings Annual Percentage Yield (APY) increased from 1.25% to 1.75% on July 16 for all of our customers
captain3d is offline  
Old 07-19-2022, 09:21 AM   #993
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,309
Quote:
Originally Posted by John Galt III View Post
Wow. I must have missed the 10 year 5% CDs. When was that?


It was in 2011. Back then it was very hard for me to commit to 10 yrs. Today, not so much.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
jazz4cash is offline  
Old 07-19-2022, 10:23 AM   #994
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2008
Posts: 7,422
Anyone tempted to dip their toes back into the market rather than lock in 5-year CDs?

Or wait until the Fed stop raising rates to see what the rates and the markets are like then?
explanade is offline  
Old 07-19-2022, 10:27 AM   #995
Full time employment: Posting here.
Trailwalker's Avatar
 
Join Date: Mar 2021
Posts: 605
Quote:
Originally Posted by explanade View Post
Anyone tempted to dip their toes back into the market rather than lock in 5-year CDs?

Or wait until the Fed stop raising rates to see what the rates and the markets are like then?

My money in the market never left. CD money/cash equivalents get moved around to take advantage of what looks like the best short term rates. I'm not ready to lock into anything yet longer than a year. My short term money gets me to Medicare and off Marketplace income constraints in four years.
Trailwalker is offline  
Old 07-19-2022, 11:19 AM   #996
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,309
Quote:
Originally Posted by Trailwalker View Post
My money in the market never left.


+1. Just trying to maintain a bucketed ladder strategy going out ~5 yrs for these products.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
jazz4cash is offline  
Old 07-19-2022, 12:36 PM   #997
Full time employment: Posting here.
erkevin's Avatar
 
Join Date: Oct 2014
Location: Tucson
Posts: 797
Quote:
Originally Posted by explanade View Post
Anyone tempted to dip their toes back into the market rather than lock in 5-year CDs?

Or wait until the Fed stop raising rates to see what the rates and the markets are like then?
I bought more VTI last week. It's on sale.....why wait for the price to go up?
erkevin is offline  
Old 07-20-2022, 11:17 AM   #998
Full time employment: Posting here.
Silver's Avatar
 
Join Date: Sep 2010
Location: Orlando, Fl
Posts: 950
Online saving at Bask Bank just went up to 2.0% APY. I moved our cash over from Discover when Bask was at 1.25% and Discover was still at 0.6%.

Lovin' it.
__________________
"Some people describe themselves as being able to see things as a glass half full. For some, the glass is half empty. Me? I can't even find the f***king glass."
Silver
Silver is offline  
Old 07-20-2022, 11:22 AM   #999
Thinks s/he gets paid by the post
 
Join Date: Feb 2014
Posts: 3,054
Pendfed sent an email for a 3 year @ 3.25%. Not that great since brokered CDs are 3.40% for the 3 years.
jim584672 is offline  
Old 07-20-2022, 11:31 AM   #1000
Recycles dryer sheets
 
Join Date: Oct 2010
Location: Columbus
Posts: 159
"Online saving at Bask Bank just went up to 2.0% APY. I moved our cash over from Discover when Bask was at 1.25% and Discover was still at 0.6%".




Hopefully Sycrony will pony up soon.
kongmen is offline  
Closed Thread


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


» Quick Links

 
All times are GMT -6. The time now is 04:36 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.