Best MYGA (Multi Year Guaranteed Annuities) Thread 2024 - Please post updates here.

[GenXguy]

Looks like I got in just in time on immediateannuities for 5.85%. I e-signed the application over the weekend. The rate is showing 5.7% now, same as Blueprint. Stan is still showing 5.85%.

I hate to put $100K into one MYGA, but $80K was the minimum to get this rate. And it is A rated.

 

[GenXguy]

OK, all 3 of their websites are all showing 5.7% for the Oceanview Harbourview 6 year MYGA now. So, I'm glad I snagged the 5.85% in time.

The Mass Mutual A++ 5 year has dropped to 4.95% now, which had been 5.55% recently when I looked into it.

 

[teej1985]

I'm not sure that you would have received a different rate any of these brokers...they are supposed to all offer the same rate. Unless one made a mistake and the insurance company honored it, but that seems unlikely too.

 

[GenXguy]

I'm not sure that you would have received a different rate any of these brokers...they are supposed to all offer the same rate. Unless one made a mistake and the insurance company honored it, but that seems unlikely too.

There wasn't a mistake through immediate. Like I mentioned up above, the agent at immediate annuities confirmed the rate was effective for a few more days after I first inquired on it last Thursday (changing May 21st I think). Their site and Stan's were both showing 5.85% until this week, so it looks like they were both accurate when I reviewed these websites late last week. But Blueprint was showing only 5.7% with the rate set date of May 16.

I suspected they would all match by early this week, and sure enough, the do now, at 5.7%. Looks like Blueprint might have been updating to the new lower rate on their site early. Doesn't matter at this point as they are 5.7% on all 3 now. I'm glad I got in on the 5.85%, which shows on my application, but their email says, "We will let you know as soon as your application is deemed to be in good order and when they are ready to receive your funds. We do not recommend you sending in a check at this time until they have completed their review and approved suitability." I find it odd that they need to approve my suitability.

 

[Koolau]

I agree that the difference is negligible but I think being insurance companies the issuers move at a glacial pace compared to brokers. I would not count on them being very responsive. I only have experience with A rated Americo but it seems like they move at their own pace and follow up calls are routine. I still like MYGheAs and I would be OK with a B+ rating.

We found that having a responsive agent handling your MYGA was a valuable addition to the process. He "shepherded" DW's MYGA from start to finish - getting us a better rate up front and then getting the cash out within days of maturity.

 

[ShokWaveRider]

I like MYGAs in some cases better than brokered CDs. From a trust perspective there is really not much difference when dealing with A, A+ and A++ companies. I like the way one can have tax withheld from the 10% free annual withdrawals. I think as long as they are covered by the state guarantee they are pretty much of a wash from a safety perspective. The tax deferral part is not so important to me anymore as we are approaching RMD age.

 

[GenXguy]

Well, it's going well. I received a copy of the annuity application, Certificate of Disclosure and Acknowledgement, and suitability questionnaire.

Today, I received an email with FedEx label (to Oceanview) from immediateannuities that it's ready to be funded, so apparently they considered it suitable for me. lol

It looks like I will have a 20 day free look period where I can request a refund after I receive the contract.

Vanguard freed up the ACH funds from NFCU in 4 days (rather than 7) and let me initiate an ACH transfer to my local bank so that I can write a check soon.

I wasn't told and didn't see any info on the documents from immediateannuities.com how long I had to fund it, but I've read elsewhere this could be 30 days. But I don't start earning interest until it's funded.

I like MYGAs in some cases better than brokered CDs. From a trust perspective there is really not much difference when dealing with A, A+ and A++ companies. I like the way one can have tax withheld from the 10% free annual withdrawals. I think as long as they are covered by the state guarantee they are pretty much of a wash from a safety perspective. The tax deferral part is not so important to me anymore as we are approaching RMD age.

Tax deferral is important to me because my MAGI income would jump up thousands more if I put this into a regular CD, and that would increase my ACA / healthcare costs.

One bad thing about those 10% withdrawals is that it's "interest first", then principal, so I probably won't be doing any of that since it would be too much MAGI income.

 

[jazz4cash]

I had submitted an application at Blueprint and the rate went up after I submitted the application. I called Blueprint and they said they would file an appeal once the contract was issued. If they did not honor the higher rate, I could always withdraw during the free look period. As it turned out the annuity company bumped me up to the higher rate without an appeal.

 

[sarasotacycler]

I just got a 6.1% rate with Blueprint - Aspida rated A-. They said that it is promotional and that they are assigning some of their commission to the rate.

 

[GenXguy]

I just got a 6.1% rate with Blueprint - Aspida rated A-. They said that it is promotional and that they are assigning some of their commission to the rate.

I didn't see a 6.1%, but I saw an Aspida 6.15% MYGA there, but it says nothing about a death benefit in the brochure while the Aspida with the 5.75% rate does show the death benefit and options.

 

[sarasotacycler]

I had rounded down. You are correct, the rate is 6.15%

Here is the death benefit language from the Blueprint site:

Death Benefit Provisions:
If you are the owner/annuitant and die before the maturity date, your named beneficiaries will receive the full contract value, with no withdrawal charges or MVA applied, typically without the delay and expense associated with probate. Special rules apply if your spouse is co-owner.

 

[GenXguy]

I had rounded down. You are correct, the rate is 6.15%

Here is the death benefit language from the Blueprint site:

Death Benefit Provisions:
If you are the owner/annuitant and die before the maturity date, your named beneficiaries will receive the full contract value, with no withdrawal charges or MVA applied, typically without the delay and expense associated with probate. Special rules apply if your spouse is co-owner.

Yeah, it looks like Blueprint just cut and paste some info in there based on the typical Aspida MYGA. There's no hint of it in the actual brochure of the higher earning MYGA from Aspida. So why would that one pay better than the one that specifically mentions the death benefit in the brochure? I would look carefully into that. Seems suspicious.

 

[sarasotacycler]

The same death benefit language is in the Aspida brochure under the section called "Leaving a Legacy". So it looks like they just used a different heading.

I usually consider the death benefit

 

[GenXguy]

The same death benefit language is in the Aspida brochure under the section called "Leaving a Legacy". So it looks like they just used a different heading.

I usually consider the death benefit

I see, the language is a little different under "Leaving a Legacy" in that they don't even use the term "death", so it didn't show up when I searched for the term.

 

[jollystomper]

Dumb Question of the Moment (I ask a lot of dumb questions throughout the day ):

In Fidelity, under the Fixed Income options, there is a section called "Deferred Fixed Annuities". How do these relate to MYGAs? Are they:

1. The same thing, just with different terminology
2. A superset/subset of MYGAs
3. Something completely different

My Fidelity advisor has suggested I consider them... naturally since they make a commission off of them . This is not something on my radar, but I would like to understand the relationship, if any. A web search for comparison does not yield anything very clear. I know the folks on this thread have the practical experience to straighten me out.

 

[ShokWaveRider]

Tax deferral is important to me because my MAGI income would jump up thousands more if I put this into a regular CD, and that would increase my ACA / healthcare costs.

One bad thing about those 10% withdrawals is that it's "interest first", then principal, so I probably won't be doing any of that since it would be too much MAGI income.

Agreed. However, for us already on Medicare the 10% free withdrawal it is a great option for us. I like it because they can hold back the interest as withholding for next year's taxes, saving me worrying about regular monthly Tax Payments. I can do it all in one go at the end of the year.

 

[Luvtoride]

I like MYGAs in some cases better than brokered CDs. From a trust perspective there is really not much difference when dealing with A, A+ and A++ companies. I like the way one can have tax withheld from the 10% free annual withdrawals. I think as long as they are covered by the state guarantee they are pretty much of a wash from a safety perspective. The tax deferral part is not so important to me anymore as we are approaching RMD age.

Sorry for one more dumb question here, but what is a “brokered CD”? Don’t you just open a CD at a bank or financial institution? Do you mean purchasing a CD or a MYGA thru a Financial Advisor?

 

[Dtail]

Dumb Question of the Moment (I ask a lot of dumb questions throughout the day ):

In Fidelity, under the Fixed Income options, there is a section called "Deferred Fixed Annuities". How do these relate to MYGAs? Are they:

1. The same thing, just with different terminology
2. A superset/subset of MYGAs
3. Something completely different

My Fidelity advisor has suggested I consider them... naturally since they make a commission off of them . This is not something on my radar, but I would like to understand the relationship, if any. A web search for comparison does not yield anything very clear. I know the folks on this thread have the practical experience to straighten me out.

The answer is #1. These are MYGA's, no different than Blueprint, etc. I have bought them for my mom's trust.
Fidelity however will only deal in AAA or close to that credit rating, so less choices than other sites.
All brokers charge commissions for MYGA's. They are already built into the yields and thus there are no hidden or unusual fees that one might find in variable annuities.

 

[ShokWaveRider]

Sorry for one more dumb question here, but what is a “brokered CD”? Don’t you just open a CD at a bank or financial institution? Do you mean purchasing a CD or a MYGA thru a Financial Advisor?

Brokered CD is one you get through a broker like Schwab or Fidelity, they work with many banks. It is like walking into your local bank and buying one except you can consolidate them under one roof. One thing I notice about brokered CDs is that it is tough to find one that pays interest monthly. All ours are 6 month pay dates, some also pay quarterly.

 

[Dtail]

Sorry for one more dumb question here, but what is a “brokered CD”? Don’t you just open a CD at a bank or financial institution? Do you mean purchasing a CD or a MYGA thru a Financial Advisor?

Brokered CD's are sold typically through financial institutions such as Fidelity, Schwab, etc. You can buy them on your own on the Fidelity website without going through a Fidelity broker.
They are different than bank CD's in that one can trade them anytime without penalty vs. an early withdrawal on a bank CD will have an interest penalty. Typically their rates are higher than bank CD's, although can be lower or higher than MYGA's.
Furthermore for example, you might see a 1 yr Brokered CD from Ally Bank selling on the Fidelity site and the rate will be higher than the 1 yr CD selling on the Ally Bank site.

 

[GenXguy]

Another big difference with brokered CDs is that when it matures, you better report the cost basis and capital gain on your tax return. I didn't do that the first time I had a brokered CD about a decade ago, and the IRS sent me a bill for about $15,000 that I had to straighten out. I had never had to deal with that with standard bank CDs, so that was new to me.

 

[jollystomper]

The answer is #1. These are MYGA's, no different than Blueprint, etc. I have bought them for my mom's trust.
Fidelity however will only deal in AAA or close to that credit rating, so less choices than other sites.
All brokers charge commissions for MYGA's. They are already built into the yields and thus there are no hidden or unusual fees that one might find in variable annuities.

Thanks very much!

 

[teej1985]

Another big difference with brokered CDs is that when it matures, you better report the cost basis and capital gain on your tax return. I didn't do that the first time I had a brokered CD about a decade ago, and the IRS sent me a bill for about $15,000 that I had to straighten out. I had never had to deal with that with standard bank CDs, so that was new to me.

The broker didn't send a 1099 with this information? Maybe that was in the old times before they were required to keep track of cost basis?

 

[jazz4cash]

The broker didn't send a 1099 with this information? Maybe that was in the old times before they were required to keep track of cost basis?

I was wondering about that also. Everything needed reported to me on 1099B

 

[GenXguy]

The broker didn't send a 1099 with this information? Maybe that was in the old times before they were required to keep track of cost basis?

As I explained, I only reported interest income as I had always reported on my CDs in the decades prior. So, no, I didn't report a capital gain of $0, even if I had received that info in a 1099 way back then. Like I said, that was many years ago and was my first incident with a brokered CD, so I don't need any suggestions about it to go back in time. LOL I took care of the matter easily enough. I'm just trying to warn someone else about it.

I was wondering about that also. Everything needed reported to me on 1099B

$0 may have been reported on a 1099, who knows... was many years ago. I didn't claim the $0 in income in any event. See above.