Does anyone here use a MYGA for income?

[ShokWaveRider]

I have been perusing MYGA investments lately that are currently paying 5.75 for 5 years and are not callable. They allow 10% per year withdrawals. They can be set up for monthly withdrawal of interest if required (Income Rider).

For $500k (Joint) covered by the State Guarantee Fund (Insurance), that would return $2,395 a month.

I was wondering if anyone else is doing this?

 

[PatrickA5]

I have been perusing MYGA investments lately that are currently paying 5.75 for 5 years and are not callable. They allow 10% per year withdrawals. They can be set up for monthly withdrawal of interest if required (Income Rider).

For $500k (Joint) covered by the State Guarantee Fund (Insurance), that would return $2,395 a month.

I was wondering if anyone else is doing this?

I did a MYGA through Fidelity back in 2020, but didn't do any withdrawals before it matured.

The Income Rider that you mentioned sounds interesting. I assume, due to the fact that the interest is paid monthly, that the interest would be taxable in the year received vs. deferred under a normal MYGA?

 

[ShokWaveRider]

The Income Rider that you mentioned sounds interesting. I assume, due to the fact that the interest is paid monthly, that the interest would be taxable in the year received vs. deferred under a normal MYGA?

Yes

 

[marko]

I have been perusing MYGA investments lately that are currently paying 5.75 for 5 years and are not callable. They allow 10% per year withdrawals. They can be set up for monthly withdrawal of interest if required (Income Rider).

For $500k (Joint) covered by the State Guarantee Fund (Insurance), that would return $2,395 a month.

I was wondering if anyone else is doing this?

This seems to be another area that has changed with higher rates. Interesting and I'll standby for more responses. 5.75 for 5 years with no risk......hmmmm.

 

[ShokWaveRider]

Schwab has an A+ company offering 5.35% for 5 years. Keeps those with Schwab a one stop shop. But at the cost of 0.40% that is available from Lincoln National, an A+ company.

 

[skyking1]

We have one that is timed to mature at our retirement date and pay out over 6 years to my SS @70
It is our bridge income.

 

[pb4uski]

I have been perusing MYGA investments lately that are currently paying 5.75 for 5 years and are not callable. They allow 10% per year withdrawals. They can be set up for monthly withdrawal of interest if required (Income Rider).

For $500k (Joint) covered by the State Guarantee Fund (Insurance), that would return $2,395 a month.

I was wondering if anyone else is doing this?

I would consider it if I could do it in one of my existing taxable, tIRA or Roth brokerage accounts. At this point I hve no interest in having more accounts.

 

[pb4uski]

This seems to be another area that has changed with higher rates. Interesting and I'll standby for more responses. 5.75 for 5 years with no risk......hmmmm.

A nit, but I would say negligible risk rather than no risk.

 

[Dtail]

I have taken out some MYGA's for my mom through Fidelity which mainly deals with Triple A companies. Had some delay in one of the maturations of one of them which had a lower rate than current rates.
Will probably just stick to Brokered CD's in the future, as my mom doesn't need the 10% income each year.

 

[MercyMe]

I own a couple of MYGA's (regrettably purchased before interest rate went up) not for monthly income but for tax deferral purposes. Since then, I've read horror stories online about the challenges of closing out the MYGA when it matures. Apparently the window for closing is short ,and some insurers make the process difficult or they claim to have not received your in-writing request to not renew. It is then renewed automatically for a given term... locking away the money.

So now I refuse to invest any further into these. I don't trust these "insurers". Also, my last experience with BluePrint Income (purveyor of MYGA's) was very unpleasant.

 

[ShokWaveRider]

I read this morning about SCHD producing 12% over a fairly long term.
I look and see the dividend is ~ 3.50%. So does it return capital gains or just what is producing the higher return I'm reading.

Not relevant to this post as it is not a Fixed Insurance Annuity.

 

[Dtail]

I own a couple of MYGA's (regrettably purchased before interest rate went up) not for monthly income but for tax deferral purposes. Since then, I've read horror stories online about the challenges of closing out the MYGA when it matures. Apparently the window for closing is short ,and some insurers make the process difficult or they claim to have not received your in-writing request to not renew. It is then renewed automatically for a given term... locking away the money.

So now I refuse to invest any further into these. I don't trust these "insurers". Also, my last experience with BluePrint Income (purveyor of MYGA's) was very unpleasant.

A lesser version of the above situation happened to me relating to one of my mom's MYGA'S. However they just held the monies in a temporary MYGA (below market) until things got cleared up.

 

[ShokWaveRider]

So now I refuse to invest any further into these. I don't trust these "insurers". Also, my last experience with BluePrint Income (purveyor of MYGA's) was very unpleasant.

Nothing but GOOD things to say about BluePrint Income. Leslie is a godsend and super responsive. I am not sure what you are complaining about. But whenever I ask her to do something, such as take a withdrawal, which I have done twice, it is completed with money in my account in less than a week. If one expects better than that, then it is wishful thinking.

 

[Golden sunsets]

I have taken out some MYGA's for my mom through Fidelity which mainly deals with Triple A companies. Had some delay in one of the maturations of one of them which had a lower rate than current rates.
Will probably just stick to Brokered CD's in the future, as my mom doesn't need the 10% income each year.

Dtail; Can you tell me how to find MYGA's on the Fideilry income screen?

 

[Dtail]

Dtail; Can you tell me how to find MYGA's on the Fideilry income screen?

Not at home now, but go to the following
Home Page - Products
Products - Fixed Income, Bonds & CD's
Fixed Income - Search for Investments
Search - Annuities
Annuties - choose the state
All the issuers with rates and maturities will appear. Jumbo rate for annities over 100k.

 

[jazz4cash]

Good thread. I have 3 contracts purchased through Blueprint Income from Americo, an A rated insurer I never heard of. I am very happy with Blueprint. I am not taking Monthly income but I have taken the accrued interest to buy an additional contract. Americo lost one of the checks for a bit before it was mailed. I might stick with Blueprint but would diversify away from Americo. I have <50% of my state insurance limit with them.

As much as I love to consolidate, I’m not sure buying thru Blueprint really helps. I still need online account with Americo to see details. Plus Canvass Annuity (subs of Puritan Life B++) is pounding my email with an offer of 5yrs@ 6.5%. Canvas and Gainbridge only sell direct. They are not offered thru Blueprint, StanAnnuityMan, or immediateannuities.com

 

[CP Soon]

Good thread. I have 3 contracts purchased through Blueprint Income from Americo, an A rated insurer I never heard of. I am very happy with Blueprint. I am not taking Monthly income but I have taken the accrued interest to buy an additional contract. Americo lost one of the checks for a bit before it was mailed. I might stick with Blueprint but would diversify away from Americo. I have <50% of my state insurance limit with them.

As much as I love to consolidate, I’m not sure buying thru Blueprint really helps. I still need online account with Americo to see details. Plus Canvass Annuity (subs of Puritan Life B++) is pounding my email with an offer of 5yrs@ 6.5%. Canvas and Gainbridge only sell direct. They are not offered thru Blueprint, StanAnnuityMan, or immediateannuities.com

I have been eyeing Canvas for several months now. The recent increase to 6.5% makes a very compelling case to pull the trigger. Thinking I will give them a call this week.

 

[jazz4cash]

I have been eyeing Canvas for several months now. The recent increase to 6.5% makes a very compelling case to pull the trigger. Thinking I will give them a call this week.

Pls post a followup. I just checked Gainbridge. Their 5 yr rate is only 5.55. Canvas has two types of MYGA and I’m not sure if I ever really figured out all the differences between them.

 

[PatrickA5]

How would monthly payments even work on these? Do they deposit the payment to some account at the same insurance company and you have to manually ACH them to your account? That would be a hassle not worth doing on a monthly basis. OTOH, if they automatically transferred it to say a checking account, it might be worth something.

 

[ShokWaveRider]

How would monthly payments even work on these? Do they deposit the payment to some account at the same insurance company and you have to manually ACH them to your account? That would be a hassle not worth doing on a monthly basis. OTOH, if they automatically transferred it to say a checking account, it might be worth something.

No, just like a distribution they put it in your selected bank account.

 

[jazz4cash]

No, just like a distribution they put it in your selected bank account.

I would double check for the specific contract. The details vary among issuers.

 

[ShokWaveRider]

I would double check for the specific contract. The details vary among issuers.

I have taken 2 distributions from mine, 10% per year, no issues deposited into my CU account within 2 days of request. My current MYGA does not have a monthly rider though, which is why I asked. I am not concerned as to where it would go as I am confident it will be deposited wherever I tell them to.

 

[jazz4cash]

The Americo MYGA I purchased also has a 10% “free” annual withdrawal per year. It is not automatic. I was even able to collect within the 1st year of the contract but they lost one of my checks for a while. They don’t have free withdrawals of interest. Their current contracts only offer 5%/yr which is a bit less than what they earn.

 

[PatrickA5]

No, just like a distribution they put it in your selected bank account.

So, this would make this kind of like a CD that pays monthly interest. The downside would be you're pretty much stuck with the investment since surrender charges are steep. Seems a monthly paying CD would be better (assuming the rate and term are equal).

 

[Golden sunsets]

Thanks Dtail