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Investing - Theory, News & General • Purchasing MYGAs (multi year guaranteed annuities) - mega thread

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I am considering my first MYGA in California since I want to lock in an attractive rate now before any Fed rate decreases later. An agent I have dealt with in the past, presented an option from Fidelity & Guaranty (A rated) for a MYGA with a guaranteed 5.5% interest rate for a 7 year guaranty period with penalty free withdrawals of interest and stepped down penalty fee for additional withdrawals. I am not concerned about locking the principal up for 7 years since I am retired and this is for later spending needs.

My concerns are: 1) the contract says it is for a 10 year term but that I can withdraw all funds at the end of the 7th year penalty free otherwise it will renew at a market rate and 2) the contract calls it a single premium deferred annuity and does not say Multi Year Guaranty Annuity. Any thoughts on my concerns since this is my first MYGA? Thank you.
I'm familiar with F&G due to some conversations with an annuity salesman back in 2019.

It's very possible that you are being pitched the F&G Accumulator product. This is an actually a "Fixed Index Annuity" and definitely not an MYGA.
https://success.fglife.com/hubfs/Annuit ... 1PROOF.pdf

These are sold by salesmen that make allot of money off the sale of the product. Runaway fast!
https://www.annuityresources.com/review ... ulator-10/
I agree that poster Skywalker10 should determine if he/she is being pitched an indexed annuity or a MYGA.

If the rate of 5.50% is fully guaranteed for seven years, and money can be withdrawn without penalty after seven years, it’s likely that the product being sold is this seven year MYGA which is currently paying 5.50% for seven years:
https://public-static-content.blueprint ... ochure.pdf

Statistics: Posted by Stinky — Thu Jun 06, 2024 2:59 am — Replies 2374 — Views 322102



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