Starting MYGA Investment

[Dtail]

Quote:

Originally Posted by catotx Just curious, does Fidelity list the MYGA as one of your holdings in your TIRA? Or was the money simply withdrawn and you don't see it when you logon to Fidelity?

I see the MYGA in the holdings summary page, but it is listed separately outside the irrevocable trust, even though it is technically still in the trust.

[catotx]

Quote:

Originally Posted by Dtail I see the MYGA in the holdings summary page, but it is listed separately outside the irrevocable trust, even though it is technically still in the trust.

Thanks. If only Fidelity would also sell MYGAs from insurers with AM Best ratings in the Good and Excellent category. I think they currently only sell from insurers with Superior ratings.

[Dtail]

Quote:

Originally Posted by catotx Thanks. If only Fidelity would also sell MYGAs from insurers with AM Best ratings in the Good and Excellent category. I think they currently only sell from insurers with Superior ratings.

Unfortunately that is correct. I think there are 3 current insurers they use.

[pb4uski]

They are "protecting" their customers...that is why my tIRA is no longer at Fido. Just a couple small HSAs.

[jazz4cash]

I agree but it seems that Fido isn’t too interested in offering MYGA choices. Brokered CDs are lousy also. They don’t have a problem letting folks load up on risky trades, though.

[jazz4cash]

Blueprint Income, my favorite MYGA portal has been acquired by Mass Mutual. They claim that BI will continue to maintain their brand and operate independently within MM. Although I have no direct experience with MM, I do have a favorable impression of them. I can’t recall positively, but I do believe MM was already offering their products on the Blueprint Income portal so it’ll be interesting to see how their products are offered alongside their competition.

Generally speaking I continue to be very pleased with the Americo 5 yr MYGA I purchased in Dec. One minor complaint… the Blueprint Income account summary shows no interest posted monthly or quarterly so far. No big deal I guess. I was planning to take advantage of the 10% free withdrawal feature on the anniversary but now I’m thinking I have access to funds earning less than this MYGA.

[retired1]

I also have positive experience with Blueprint Income. I didn't know it's been acquired by MM. It'll be interesting how it changes BI offerings especially MYGA

[jazz4cash]

Quote:

Originally Posted by retired1 I also have positive experience with Blueprint Income. I didn't know it's been acquired by MM. It'll be interesting how it changes BI offerings especially MYGA

Do you know how/ when nterest is credited to the account? May depend on the actual annuity company.

Edit: just scheduled a call to ask about this. Will update post after the call.

[jazz4cash]

Had my call with Bluprint Income today. They say MYGA interest for Americo accrues daily but I can only see the interest credits if I have account access at Americo. I really don’t want another password/user ID right now so I’m gonna ignore it. At least it’s not some goofy scheme that only posts once per yr.

[Luvtoride]

I have a MYGA through Oceanview Insurance. We locked in July 2020 for 3 years at 3%. The company was so swamped with applications and cash it took almost 2 months to issue the contract.
This was done to fund my 1st 3 years of retirement income needs at my anticipated retirement time. This also delays drawing SS until age 68.
I will check out the BI products mentioned here for future “CD like” needs. Interesting that they were acquired by Mass Mutual.

[Koolau]

Quote:

Originally Posted by Luvtoride I have a MYGA through Oceanview Insurance. We locked in July 2020 for 3 years at 3%. The company was so swamped with applications and cash it took almost 2 months to issue the contract. This was done to fund my 1st 3 years of retirement income needs at my anticipated retirement time. This also delays drawing SS until age 68. I will check out the BI products mentioned here for future “CD like” needs. Interesting that they were acquired by Mass Mutual.

Wife's MYGA was a few months earlier with a bit higher rate, but also took a couple of months to complete. I guess there was a lot of interest (excuse the expression) in these vehicles due to other rates dropping like a rock. YMMV

[jazz4cash]

I’m pretty sure Oceanview is one of the products offered by Blueprint income.

[jazz4cash]

Just applied for a 2nd MYGA through Blueprint Income. This one is B++ rated and pays 3.15 for 5yrs with no free early withdrawals. This contract is tiny since I decided to increase equity allocation with funds from maturing NASA FCU CD. Had I stayed with the A rated product I purchased last year, the rate was 2.8.

[Koolau]

Quote:

Originally Posted by jazz4cash Just applied for a 2nd MYGA through Blueprint Income. This one is B++ rated and pays 3.15 for 5yrs with no free early withdrawals. This contract is tiny since I decided to increase equity allocation with funds from maturing NASA FCU CD. Had I stayed with the A rated product I purchased last year, the rate was 2.8.

Curious if you ran into a sliding scale. DW's MYGA had to be 100K or she earned less in interest. YMMV

[jazz4cash]

Quote:

Originally Posted by Koolau Curious if you ran into a sliding scale. DW's MYGA had to be 100K or she earned less in interest. YMMV

Not for this product. The Blueprint Income website specifies any rate bands in the product details summary along with minimums, etc

[aja8888]

Question I have for those with MYGA'a funded within an IRA account:

When the MGYA matures, and you elect NOT to renew it, can the funds remain in the IRA (both principal and interest made) and not taxed as ordinary until you decide to pull them out?

[Koolau]

Quote:

Originally Posted by aja8888 Question I have for those with MYGA'a funded within an IRA account: When the MGYA matures, and you elect NOT to renew it, can the funds remain in the IRA (both principal and interest made) and not taxed as ordinary until you decide to pull them out?

My SPDAs (rough equivalent of today's MYGA's) are Roth IRAs. When the SPDA's matured - essentially defaulting to a guaranteed % "interest" level, there was NO requirement to take the money out. All continued as before, except the interest rate which dropped from a high of 11% down to 4.5% (that was a LONG time ago.)

Not sure about MYGA's, but I can't see a company insisting that you withdraw the money. The conditions (interest rate) might change, but your MYGA early-withdrawal penalties would have expired. Should be just like a "bank account" at that point but YMMV.

[aja8888]

Quote:

Originally Posted by Koolau My SPDAs (rough equivalent of today's MYGA's) are Roth IRAs. When the SPDA's matured - essentially defaulting to a guaranteed % "interest" level, there was NO requirement to take the money out. All continued as before, except the interest rate which dropped from a high of 11% down to 4.5% (that was a LONG time ago.) Not sure about MYGA's, but I can't see a company insisting that you withdraw the money. The conditions (interest rate) might change, but your MYGA early-withdrawal penalties would have expired. Should be just like a "bank account" at that point but YMMV.

Yes, this makes sense but it's not clear on the site I am looking at for purchase of a MGYA in my IRA. I'm sure they can't tell me I have to withdraw the principal and interest and take it out of the IRA on maturity. When I talk with an agent, I want him to tell me that.

[jazz4cash]

AFAIK, I can leave the IRA MYGA in tact at maturity. Many details are not available until you commit and actually receive the contract, but you could call and ask for details (in writing, preferably). There is a free look/cancellation period of 30 days or so. For my 1st purchase last year the rate drops to 1% which is not bad in today’s environment. Could be unattractive in 4 yrs, though. So at maturity I can renew at the rate in effect at that time, swap into a new contract or leave it alone and take the default rate. Subject to RMD, of course and there is an upper age limit for issuance of these products.