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

[ShokWaveRider]

Today I applied for a 5 Year MYGA at 4.1% through BluePrint Income, it was seamless. I even called them to go over the process with me, they were most helpful.

I narrowed my choice of brokers down to BluePrint, The Annuity Man, and Immediate Annuities.

I am curious which other brokers members here have used for their MYGAs.

Thanks in Advance for the Info.

 

[jazz4cash]

I used Blueprint. I think the others are very good also. They pretty much all have the same products but the transparency on BI’s website clinched it for me. They show their commission and flag products that will be changing rates.

 

[Luvtoride]

I used Blueprint. I think the others are very good also. They pretty much all have the same products but the transparency on BI’s website clinched it for me. They show their commission and flag products that will be changing rates.

Jazz, what commission do they assess/ charge on a MYGA? How much is it? Where is that paid from?

 

[ShokWaveRider]

Update, Lots of feedback so far from Blueprint. Life is good.

 

[RetiredAndLovingIt]

Jazz, what commission do they assess/ charge on a MYGA? How much is it? Where is that paid from?

How does Blueprint Income get paid?
You don’t pay us, the insurance companies do! Blueprint Income is paid 1-5% of the income annuities purchased through our online annuities marketplace.

 

[jazz4cash]

How does Blueprint Income get paid?
You don’t pay us, the insurance companies do! Blueprint Income is paid 1-5% of the income annuities purchased through our online annuities marketplace.

Yep, it’s right in the details for each product. I don’t ever recall seeing a commission higher than 3% on any of the products I’ve reviewed….not that it matters since it is paid by the issuer.

 

[rrppve]

I’ve used both Immediate Annuities and Blueprint. Blueprint is more online and Immediate is more phone and email. No issues with either.

 

[Dtail]

I have used Blueprint and Fidelity reps.

 

[Luvtoride]

Yep, it’s right in the details for each product. I don’t ever recall seeing a commission higher than 3% on any of the products I’ve reviewed….not that it matters since it is paid by the issuer.

What difference does the commission paid by the insurance company to the agent/ broker make? I’m sure that’s reflected in the MYGA rates that each company is offering? As long as every dollar I put in is earning the promised rate, who cares about commission transparency?

 

[ShokWaveRider]

Update: Today I got the E-Sign info and a pre-paid Overnight FEDEX label to send the cashish to the insurance company. I have 30 days to change my mind after the contract is written. Blueprint anticipate completion in 5 - 7 days.

This one was really a test to see how the process worked. A combination of Phone and On-line.

Not too bad, pretty seamless really. Only another 5 contracts to write then I am done ~$1m in MYGAs fully guaranteed by the Florida Guarantee Association.

 

[Dtail]

What difference does the commission paid by the insurance company to the agent/ broker make? I’m sure that’s reflected in the MYGA rates that each company is offering? As long as every dollar I put in is earning the promised rate, who cares about commission transparency?

Agree.

 

[jazz4cash]

What difference does the commission paid by the insurance company to the agent/ broker make? I’m sure that’s reflected in the MYGA rates that each company is offering? As long as every dollar I put in is earning the promised rate, who cares about commission transparency?

I just like the transparency. It doesn’t make a difference as long as it is in the ballpark of similar products. If it’s unusually high, I’d consider if I’m being sold something because of the commission. Bear in mind there are providers that sell direct and should be able to offer higher rates. The ones I’ve seen dont pass all the savings to the buyer IMO.

 

[capjak]

I purchased 3 MYGAs via Stan the Annuity Man, seamless process. Highly recommend him.

 

[Al18]

With this year’s inflation rate over 8%, why would you lock in a low fixed rate annuity? Are you receiving payments on these annuities?

 

[RunningBum]

I purchased 3 MYGAs via Stan the Annuity Man, seamless process. Highly recommend him.

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

 

[24601NoMore]

With this year’s inflation rate over 8%, why would you lock in a low fixed rate annuity? Are you receiving payments on these annuities?

Cash is king at the moment, and equity risk is off the charts high.

We're starting year 4 of ER, and I was able to pay for the first 3 years entirely with dividends from CDs.

MYGA rates are currently higher than any CD you can get. If INCOME is what you want, MYGAs are the way to go.

Personally, all I care about is income. I'm the past the stage of "needing" growth, but I sure need income. And predictable, guaranteed income sure beats selling assets that have dropped 20+%. That's not income.

Equity (and Bond) Growth is not assured, and in fact, as we've seen so far this year, you can easily wind up with huge drops in the value of your portfolio in a very short span of time.

Income is predictable and can be assured.

It's really just as simple as that. I'll take income any day of the week over RISK in the markets at this point in our retirement journey.

In fact, if we get back to SPX 4,800 or higher, I'll likely drop down to 10% equities or less, and 90+% fixed income with a guaranteed coupon. I don't really care that I'm "losing purchasing power" because the math works through end of life, as long as the income keeps coming in. And I'm not trying to get "more". I'm just planning to get "enough" to live comfortably, which predictable, guaranteed income facilitates.

ETA: it's odd that we build equity/bond portfolios with the goal of getting a 3-4% SWR yet entails taking huge risk. Anyone can get 3-4% GUARANTEED today with zero risk. Sure..that may not be the case 5 years from now..but 5 years from now wife and I will be both be pulling SS and can take more risk. But the risk now is off the charts high, AND I can GUARANTEE 3.5 - 4% SWR with no loss of principal. Pretty compelling, IMHO.

 

[pletal]

Today I applied for a 5 Year MYGA at 4.1% through BluePrint Income, it was seamless. I even called them to go over the process with me, they were most helpful.

I narrowed my choice of brokers down to BluePrint, The Annuity Man, and Immediate Annuities.

I am curious which other brokers members here have used for their MYGAs.

Thanks in Advance for the Info.

Hello, I have used Blueprint, Canvas and Gainbridge. All have been good. Blueprint has on that came out today for 4.5 percent 7 years. People keep on asking why lock in at a lower rate than inflation. It’s higher than a CD and insured by the state up to a certain amount. I based my retirement , which will come soon enough, on a 2.5 withdrawal rate. So 3.5 to 4.5 is ok for me. I have CDs coming due in the next year that are averaging about 3.1 so locking in at 4 or higher is a win for me. Good luck.

 

[24601NoMore]

I've used FIDO and Blueprint. My first Blueprint purchase did not go well, unfortunately. It wasn't entirely Blueprint's "fault" and seems to be more the carrier was just slammed with applications and took over a month (!) to open our account. Regardless, I did get the impression BP doesn't have the "pull" that FIDO does to work through problems and issues with the carriers when they arise.

I plan to give them a second chance and hopefully things will go better this time. But the first round with BP was very challenging compared to FIDO who got things done in days vs more than a month..

 

[jazz4cash]

I’d guess it’s the premo providers that Fido works with. There’s very little that Blueprint does that could delay issuance. Maybe they forget a form that a particular insurer requires. They generally lock your rate at application but you’re not earning anything until they process the app. With rates going up it could workout in your favor. It did for me.

 

[Al18]

I understand the fixed interest concept - I have a few years of basic living expenses in CD. I don’t understand how you are receiving payments. I saw a 100k, 10 year MYGA where you could withdraw about 10.5K per year. Or you could not withdraw anything and have 158K at the end of year 10. A 58K LTCG looks hard to manage your taxes.

 

[jazz4cash]

I understand the fixed interest concept - I have a few years of basic living expenses in CD. I don’t understand how you are receiving payments. I saw a 100k, 10 year MYGA where you could withdraw about 10.5K per year. Or you could not withdraw anything and have 158K at the end of year 10. A 58K LTCG looks hard to manage your taxes.

Actually, it's worse than that! There is no capital gains treatment for annuities as far as I know. The payments are treated as ordinary income. You do not have to take the 58k gain all at once....you can spread the the payments out but I think the interest comes out first...here are the rules
https://www.annuity.org/annuities/taxation/

 

[ShokWaveRider]

Actually, it's worse than that! There is no capital gains treatment for annuities as far as I know. The payments are treated as ordinary income.

Basically, just like CDs. Except the interest is Tax deferred and only taxable when you withdraw it. Just like your Regular IRA, 401k or any other standard deferred retirement vehicle. (Not Roth of course, but Roth investments are taxes at ordinary income initially)

 

[24601NoMore]

I understand the fixed interest concept - I have a few years of basic living expenses in CD. I don’t understand how you are receiving payments. I saw a 100k, 10 year MYGA where you could withdraw about 10.5K per year. Or you could not withdraw anything and have 158K at the end of year 10. A 58K LTCG looks hard to manage your taxes.

You can set up auto distributions of the interest from most MYGAs and have the interest ACH'd into a checking account. Just be sure you're at least 59 1/2 when taking interest distributions, or there's a penalty just as with an IRA.

Basically, just like CDs. Except the interest is Tax deferred and only taxable when you withdraw it. Just like your Regular IRA, 401k or any other standard deferred retirement vehicle. (Not Roth of course, but Roth investments are taxes at ordinary income initially)

Yep. Interest is only taxable when you withdraw it, which is one of the things that makes MYGAs superior IMHO to CDs. CDs, you'll get hit with interest income on a 1099 whether you take it or not. You can easily defer interest from hitting your 1099 simply by not taking it from a MYGA.

MYGAs can also be directly rolled over at maturity so that you don't have a large distribution at the end of the ownership period.

Of course, MYGAs are more of an income product than an investment product, so not sure why you would open up a MYGA and NOT take the interest along the way..3-4 % as an investment isn't compelling, even though 3-4% income is, IMHO, compelling.

All that said, opening a MYGA can be a REAL PITA. They can take absolutely forever to open (my last one took 5 weeks (!)) and all come with complex contracts of varying lengths. Even the simplest are an absolute bear to read through. Fortunately, a big part of my job involved reading and writing complex contracts for Fortune 500 companies, but I feel for people who don't have similar backgrounds as you really need to parse through these very complicated contracts carefully.

 

[24601NoMore]

I’d guess it’s the premo providers that Fido works with. There’s very little that Blueprint does that could delay issuance. Maybe they forget a form that a particular insurer requires. They generally lock your rate at application but you’re not earning anything until they process the app. With rates going up it could workout in your favor. It did for me.

It wasn't that Blueprint delayed issuance..it's just that they didn't seem to have a lot of influence over the carrier (Western & Southern) to get my application pushed through. Instead, I basically got told it would be issued "soon" for almost 5 weeks. That was apparently because the carrier was slammed with applications, but still..And as you have to send in the funds at the beginning of the process, it became really uncomfortable with the carrier having our money with no idea whatsoever when they would get back with us. It was basically like dealing with a big black hole of inadequate information.

Contrast that with Fido..I thought it was taking too long (when in fact it wasn't now that I know MYGAs can take forever to open). Called my FIDO rep..he called the carrier..policy was issued 2 days later.

Bottom line, I think FIDO has more "pull" with the carriers than Blueprint. They're nice people and seem to try hard, but I just don't think they have the pull that FIDO has with the carriers. No idea how they compare to Stan the Annuity Man, Immediate Annuities or others on that point, though.

 

[DuluthGA]

So, bond ladder or a few MYGA to get me through the next 6 years? Or both?
Looking for the income and like the return of principal along the way for possible reinvestment at higher rates.