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

[ShokWaveRider]

When choosing a 5, 4 or 3 year MYGA, should one really be concerned whether they are rated A, A+ or A++? Is there a meaningful difference for these contract periods?

 

[Al18]

There’s an informative and funny video made by Stan the Annuity Man Link

 

[pb4uski]

The difference in credit risk between A++, A+ or A over 5 years is probably negligible. Besides, if the company goes sideways and you're quick enough you can always withdraw everything and pay the surrender charge and limit the bleeding.

 

[ShokWaveRider]

There are some pretty good rates with A++ Companies at the moment. Mass Mutual being one. They allow penalty free withdrawals of 10% Per year and honor RMD withdrawals. Withdrawals can also be set up to pay periodically (Monthly Maybe). Seems like a good deal to me. If one has ~$1m in Laddered MYGAs it could provide a reasonable income.

 

[VanWinkle]

Recently did 3,4,and 5 year MYGA ladder with all of the companies being
A- and above. The rates were comparable with the B rated companies
so the choice was easy.

 

[jazz4cash]

The difference in credit risk between A++, A+ or A over 5 years is probably negligible. Besides, if the company goes sideways and you're quick enough you can always withdraw everything and pay the surrender charge and limit the bleeding.

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 MYGAs and I would be OK with a B+ rating.

 

[ShokWaveRider]

Mass Mutual has a great 5 Year MYGA available at the moment. They are A++ rated.

Voyager Plus - 5.55% Annual Rate​

• 5 Years Surrender Fee Period (Duration).
• Tax-Deferred, Compound Interest
• No Stock Market Exposure
• Penalty Free Withdrawals Available
• No Loads, Fees, or Sales Charges

 

[jazz4cash]

I never realized how much MYGA rates vary based on state of residence. On Blueprint Income a 5yr rate of 6.3% is available in Nevada but next door in CA the max is 5.5.

 

[GenXguy]

Also see this thread, some good posts there:

MYGA

I'm an experienced investor but a COMPLETE newbie with MYGAs. Picture someone who's been vacationing in hotels suddenly deciding to get a timeshare...that level of "stuff to learn". I'm realizing that MYGA's are offering superior rates further out, like 5 years plus. I've never bought one...

www.early-retirement.org