Any reason not to do a MYGA?

[jazz4cash]

I have owned and search for MYGA’s regularly. I just received this attractive offering for a new one…compelling for sure and gets your attention:

​

Guaranteed simple interest rates as high as 6.30% A- (Excellent) AM Best rated company founded in 1957 with over $518 million in assets No fees, loads or sales charges Full account value withdrawal available after interest guarantee period Principal protection Tax-deferred growth No stock market exposure Yes, these are marketing pitches and it does state “simple interest “ but by design, these would get a lot of inquiries from investors.

Have you really evaluated the simple interest rate vs other issuer rates that compound? Simple interest is fine I guess if you are taking interest distributions as often as possible, otherwise it’s sketchy IMO.

 

[Luvtoride]

Have you really evaluated the simple interest rate vs other issuer rates that compound? Simple interest is fine I guess if you are taking interest distributions as often as possible, otherwise it’s sketchy IMO.

No, not at all. I was just using this as an example of the type of “wow” marketing being used by sellers (brokers / insurance companies) selling MYGAs. Not currently in the market, but I will be later this year to replace/ rollover my Allianz MYGA.

 

[ncbill]

Atlantic Coast is under acquisition but it seems the process is lagging. I think the acquirer has private credit assets that are under increased scrutiny.

No one else amused that a company named Atlantic Coast has its mailing address in Utah?

 

[Al18]

MYGA's are still fairly new to me, but I've noticed some insurance companies have merged over the years, and frequently they've kept the company name they liked. Oceanview Life is based in Denver, Colorado

 

[VanWinkle]

MYGAs may be a promising option for some investors, depending on their goals and investing style.
For me, they’re not a fit.

I haven’t held money market funds, CDs, or Treasuries, other than for 2–3 months for emergency needs, in decades. All my money (over 99%) is invested and working for me. The only exception is during periods of unusually high risk.

Why?

• I can always sell other assets to cover expenses if needed.
• I’ve done well using bond mutual funds since 2010 and prefer allocating less or none to stocks while relying more on specialized bond funds.
• I’ve seen excellent opportunities in bonds after major declines.
• As long as my brain works and I'm actively managing my finances, I’m not inclined to lock up money for extended periods, not even for 3-6 months.

Give me 8% and inflation under 3% and I'll think about it.

SNAXX (Schwab MM) is paying now 3.6%. If rates go down, MM will be lower, but my bond funds would do much better. So, while it's good to lock higher rates for CD,treasury,MYGA it's the best time to buy bond funds.
It's all about timing.

==============

Look what HOSIX did in the last 3 years. I will take my chances.

View attachment 62938

The 3 year return appears to be all that is available but it is pretty impressive. 32% in the Cayman Islands might make me think hard about the risk of this one though.