MYGA Holders, which Annuity Broker did you use to buy it?

[ShokWaveRider]

MYGA Rates are locked on Application, if the rate goes up before the contract is issued, the higher rate is honored. If it goes down you are locked at the original application rate. Not a real issue. Things with insurance companies always take a little time. No biggie.

 

[24601NoMore]

MYGA Rates are locked on Application, if the rate goes up before the contract is issued, the higher rate is honored. If it goes down you are locked at the original application rate. Not a real issue. Things with insurance companies always take a little time. No biggie.

Rate lock aside..Maybe not a big deal to you, but this was a $250K purchase and it felt like our funds had gone into a black hole with no good answers as to what the status was or more importantly even an ETA for completion. That was pretty disconcerting.

The other issue is opportunity cost of interest. It turns out that in this case the interest started being credited as of date funds were received. But for 5 weeks, I didn't know that and had no visibility whatsoever into what was happening..

For those of us used to buying CDs, equities or even bonds where the transaction happens basically instantly, this can all be a little unsettling your first couple times through, especially when something takes over a month to happen.

Another issue worth mentioning (not specific to Blueprint but in general) is that the website for most MYGAs are basic, basic, basic. There's no "transaction history" per se that shows the interest amount generated in the last or current month. Or even interest that was distributed. (So, the only workaround is to wait for the interest to be paid and then logon to your bank account website to see what the amount was). At least for the 2 carriers we currently do business with, all we see is the current $ amount of the MYGA, maturity date and the surrender value. All but worthless compared to your typical brokerage site, although I of course do recognize it's an insurance product vs. a bank or brokerage product. But still..super ancient websites in general in terms of functionality..

Bottom line..once CDs get competitive, I'll probably not buy additional MYGAs. But for now, they're offering considerably higher rates than most CDs - even brokered ones.

 

[jazz4cash]

Another handy feature when a MYGA matures it continues to earn interest if you don’t take a distribution. In my case it’s 1% which is comparable to many MM’s these days. The point is at least I’m earning something until I find the next thing or take distributions

 

[ShokWaveRider]

Rate lock aside..Maybe not a big deal to you, but this was a $250K purchase and it felt like our funds had gone into a black hole with no good answers as to what the status was or more importantly even an ETA for completion.

All ours are in groups of $200k ( 6 x $200k to be precise) so they can be fully covered (including interest) by our states guarantee. Being the funds are/were sitting in a Bank account getting 0.4% waiting for rates to go up, a little more delay is insignificant really when amortized over the MYGA 5 year period, at least not to us, it is worth it.

 

[jazz4cash]

All ours are in groups of $200k ( 6 x $200k to be precise) so they can be fully covered (including interest) by our states guarantee. Being the funds are/were sitting in a Bank account getting 0.4% waiting for rates to go up, a little more delay is insignificant really when amortized over the MYGA 5 year period, at least not to us, it is worth it.

So, you are using 6 different providers?

 

[capjak]

I talked with Stan today, and have a call booked tomorrow to buy an SPIA.

Yes SPIAs are looking more attractive.

Curious at what age you are purchasing?

I have done quotes on immediateannuties/stan and Blueprint.

Appeared blueprint and stan were higher/better payout than immediate annuity site.

 

[ShokWaveRider]

So, you are using 6 different providers?

Yup, or I will be.

 

[RunningBum]

Yes SPIAs are looking more attractive.

Curious at what age you are purchasing?

I have done quotes on immediateannuties/stan and Blueprint.

Appeared blueprint and stan were higher/better payout than immediate annuity site.

I found Stan and immediate annuities to have the same quotes when I was checking last week, and Stan was a few $$ higher than Blueprint today. Maybe rates dropped from the quote I got from Stan yesterday. The 2nd highest rate went up a bit, but the highest one (Mass Mutual, rated A++) dropped $28/month so I'm glad to be locked in.

I'm 60 now. I started with 20-25% of what I plan to put in annuities by 70 or 75, if my health stays good.

 

[24601NoMore]

Now the question becomes..what will happen with MYGA rates with the Fed expected to raise another 75 bps in July?

I asked my FIDO rep yesterday if he's hearing about any upcoming rate increases, and he said no..and in fact, hearing some carriers are about to cut rates after this week.

It would seem rates are most likely tied to the 5-year Treasury notes, which have dropped a whole half a percent in the past 2 weeks. If that's indeed the case, it would explain why at least some carriers are possibly going to cut rates. I'm candidly surprised to see the big drop in 5 year Treasuries these past 2 weeks but then again, few things financial surprise me nowadays..these markets and our economy are in big trouble, and we're probably closer to a very serious recession if not outright Great Depression 2.0 than ever before.

ETA - 2-year Treasury yields are most tightly tied to Fed Funds Rate, and most affected by changes. 5 year not so much but not sure what moves it if FFR doesn't? Economy is most tightly tied to 10 year yields. So it's the 5-year to watch, assuming you're 3+ years on duration of a MYGA.

 

[jazz4cash]

I found Stan and immediate annuities to have the same quotes when I was checking last week, and Stan was a few $$ higher than Blueprint today. Maybe rates dropped from the quote I got from Stan yesterday. The 2nd highest rate went up a bit, but the highest one (Mass Mutual, rated A++) dropped $28/month so I'm glad to be locked in.

I'm 60 now. I started with 20-25% of what I plan to put in annuities by 70 or 75, if my health stays good.

Is that a MYGA? It sounds like an income annuity product. I’m beginning to wonder if/when income annuity products will become tempting.

 

[Dtail]

Is that a MYGA? It sounds like an income annuity product. I’m beginning to wonder if/when income annuity products will become tempting.

Might be quoting the monthly income effect based on changes in rates, but probably the reference is still a MYGA.

 

[RunningBum]

Is that a MYGA? It sounds like an income annuity product. I’m beginning to wonder if/when income annuity products will become tempting.

SPIA

 

[ShokWaveRider]

My 200k check was received by the insurance company on Wednesday this week. I will let you know how it goes. They said 5 to 15 business days. They have not cashed the check yet.

 

[ShokWaveRider]

Blueprint upgraded my contract rate from 4.1% to 4.3% today.

 

[rrppve]

Blueprint upgraded my contract rate from 4.1% to 4.3% today.

Which MYGA is this?

 

[ShokWaveRider]

Which MYGA is this?

Brighthouse 5 year. Check the Blueprint Income Site.

 

[24601NoMore]

Blueprint upgraded my contract rate from 4.1% to 4.3% today.

Wow..nice. I had to "free look" an application with them to get .2% higher yield when rates went up. And it took 5 WEEKS after my free look to get my app approved. That's insane.

Working with a different broker on the next one and will see how it goes, but my experience with BPI was not that positive. Nice people, but the process was BRUTAL (unnecessarily so).

FWIW, new broker tells me that I "automatically" get the higher rate if it goes up before things are closed. FIDO told me the same thing. Only with BPI did I have to "free look" which involved cancelling the first app and re-applying. And they told me when I cancelled the first app that I'd go "to the back of the line" with the carrier if I did.

There does appear to be some fairly major differences between brokers, as I'm now learning...I like the BPI guys, but to this point, every other broker has had easier processes and more customer-friendly rules than BPI did on the one MYGA I opened with them. FWIW..

 

[24601NoMore]

Brightview 5 year. Check the Blueprint Income Site.

You mean BrightHouse - spin-off of Metlife?

I was considering that one also as 4.3% Jumbo is compelling..but checked BrightHouse's financials and saw they have lost (serious) money the past 3 years and have negative EPS in 2022, 2021 and 2020..

I realize there's State Guarantee backing, but do question how many $$s are in the bucket to cover failures.. Just like FDIC or NCUA, both of which are woefully underfunded.

FWIW..

 

[ShokWaveRider]

You mean BrightHouse - spin-off of Metlife

Yup, sorry, typo.

 

[jazz4cash]

Wow..nice. I had to "free look" an application with them to get .2% higher yield when rates went up. And it took 5 WEEKS after my free look to get my app approved. That's insane.

Working with a different broker on the next one and will see how it goes, but my experience with BPI was not that positive. Nice people, but the process was BRUTAL (unnecessarily so).

FWIW, new broker tells me that I "automatically" get the higher rate if it goes up before things are closed. FIDO told me the same thing. Only with BPI did I have to "free look" which involved cancelling the first app and re-applying. And they told me when I cancelled the first app that I'd go "to the back of the line" with the carrier if I did.

There does appear to be some fairly major differences between brokers, as I'm now learning...I like the BPI guys, but to this point, every other broker has had easier processes and more customer-friendly rules than BPI did on the one MYGA I opened with them. FWIW..

Please keep us updated on your experiences with various brokers. When my rate went up after submitting application Blueprint said I could get the higher rate but it would take some paperwork. The insurer (Americo) gave me the higher rate without even asking.

When I log onto my BPI account it does not show any credits, current balance, etc. They said I would need set up an account with the insurer but I refuse to initiate any more accounts if I can help it. All I get is an annual statement from Americo. I'm wondering how the other guys do it.

Edit: Blueprint Income is now owned by Mass Mutual so that should give them some pull but OTOH the insurance companies may view them as a competitor.

 

[rrppve]

I signed up for a 4.3% 6 year Oceanview MYGA with Blueprint, but just found a 4.4% % 3 year Gainbridge. Think that’s a better deal and I just won’t fund the Oceanview. Convenient that they have a 60 day funding window.

 

[ShokWaveRider]

I signed up for a 4.3% 6 year Oceanview MYGA with Blueprint, but just found a 4.4% % 3 year Gainbridge. Think that’s a better deal and I just won’t fund the Oceanview. Convenient that they have a 60 day funding window.

I cannot find any AM Best ratings on Gainbridge, at least not in Florida and I cannot find them in the Florida Company search database.

https://companysearch.myfloridacfo.gov/

 

[rrppve]

I cannot find any AM Best ratings on Gainbridge, at least not in Florida and I cannot find them in the Florida Company search database.



https://companysearch.myfloridacfo.gov/

Gainbridge is the sales channel - online only. The annuities are issued by Guggenheim think they’re A- on AM Best.
For a short or intermediate term MYGA not that concerned about credit quality as long as it’s reasonable. For a lifetime SPIA or DIA, credit quality is much more important.

 

[ShokWaveRider]

Gainbridge is the sales channel - online only. The annuities are issued by Guggenheim think they’re A- on AM Best.
For a short or intermediate term MYGA not that concerned about credit quality as long as it’s reasonable. For a lifetime SPIA or DIA, credit quality is much more important.

Ah that explains it. Although I cannot find that MYGA on any of the other Annuity providers. I would be interested in it also. But would rather use a service that I know.

Thanks.

 

[rrppve]

Ah that explains it. Although I cannot find that MYGA on any of the other Annuity providers. I would be interested in it also. But would rather use a service that I know.



Thanks.

www.gainbridge.life
Would be my first purchase there too. The standard commission on a MYGA sale seems to be 1.5%, so cutting that agent cost out via direct online sales should lead to a higher rate.