Starting MYGA Investment

[Koolau]

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]

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]

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]

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]

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.