What will be covered in this annuity review?
In this review of the American Equity Life NY Eagle Platinum 5 annuity, we will be going over the following details:
- Type of annuity
- Pros and cons
- How the annuity works
- Charges and fees
- Where it works best
- Where it may not work
Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in.
We make the complex, simple.
Making a long-term commitment to any financial product can be a big decision – particularly if it will impact your future retirement income, and ultimately, your life. As an example, an annuity can provide you with a nice, steady stream of guaranteed income that you can count on for a set period of time – or even for the remainder of your lifetime, no matter how long that may be.
On the other hand, though, if you end up choosing an annuity – or for that matter, any financial-related product – that really doesn’t fit your particular needs, then it could have a negative impact.
In the case of an annuity, you may need to contribute a fairly large chunk of your savings in order to generate a viable income stream. But because most annuities have surrender penalties for withdrawing your funds – some for more than ten years – it can cost you dearly if you purchase an annuity and then soon afterward determine that a different product would be better.
Annuities can be somewhat confusing to understand – even for well-educated consumers (as well as for some financial and insurance advisors). As “new and improved” annuities hit the marketplace, there can be a plethora of “small print” that comes along with these vehicles, sort of like an owner’s manual.
But have you (or anyone you know, for that matter) ever really sat down and read an owner’s manual word for word?
The answer is likely no.
The “small print” that is associated with almost any product or service can oftentimes seem a bit daunting. Therefore, most people will simply move forward with their purchase, and hope that everything turns out ok.
When it comes to your future income, though, hope is definitely not the best strategy. That’s where Annuity Gator can help.
Annuity and Retirement Income Planning Information You Can Trust
If this is the first time you have visited our website, we would like to officially welcome you here to AnnuityGator.com. We make up a team of experienced financial professionals who are dedicated to providing you with non-biased and comprehensive annuity reviews. We’ve been offering in-depth annuity reviews for many years on our site, and because of that, we have become a trusted source of annuity information online.
As you have been researching annuities via the Internet, you may have noticed that there are other “copycat” sites that try to provide you with annuity reviews, but in reality, many of these are actually just trying to lure you in and give them your contact information.
In order to get you to do so, some of these websites will make some fairly bold claims about the annuities they offer, such as the following:
- Highest income payouts
- Lowest fees
- Top-rated annuity carriers
- Guaranteed income for life
- Get your quote now!
Yet, even though these claims can sound pretty enticing before you move forward with a purchase, you should also first ensure that they are true – just like you would if you were in the process of purchasing any other high dollar item or service.
If you really want to find out more about the American Equity Life NY Eagle Platinum 5 annuity, you are certainly in the right spot. In fact, we dare say that this website is the only place where you will be able to find out all of the important details. This includes the good, the bad, and even the just plain ugly. This, however, is really the only way that you can truly decide whether or not this annuity is right for you.
Oftentimes, insurance and financial professionals who offer fixed annuities will paint a nice, rosy picture of how their products provide safety – but will often leave out the details on the potential drawbacks that products have. So, before you move a chunk of your hard-earned savings into one of these annuities, it is essential that you know the whole story.
Just to be perfectly clear, here, we want to state that we feel that annuities can be highly beneficial for many people – provided that they fit in with your overall short- and long-term financial goals.
This annuity review is here to help you with better understanding all of the “fine print” so that you have a much more clear knowledge of whether or not the NY Eagle Platinum 5 annuity from American Equity Life of New York may work well for your ultimate short- and long-term financial goals.
So, if you’re ready to begin, then let’s dive in!
The American Equity Life of New York’s NY Eagle Platinum 5 Annuity at a Glance
|Product Name||NY Eagle Platinum 5|
|Issuer||American Equity of New York|
|Type of Product||Single Premium MYGA (Multi-Year Guaranteed Annuity)|
|A.M. Best Rating||A- (Excellent)|
|Phone Number||(866) 233-6660|
Opening Thoughts on the American Equity Life of New York’s NY Eagle Platinum 5 Annuity
American Equity of New York was founded under the same guiding principles of its parent company, American Equity Investment Life Insurance Company.
This insurer is headquartered in West Des Moines, Iowa. Currently (as of mid-2020), the company holds nearly $54 billion in assets, and it is ranked as the #3 producer of fixed indexed annuities.
With more than 500,000 active contract holders, American Equity has high ratings from the insurer ratings agencies, including a(n):
- A- (Excellent) from A.M. Best
- A- (Strong) from Standard & Poor’s
As a wholly-owned subsidiary of American Equity Investment Life Insurance Company, Eagle Life leads the way by always striving to provide quality retirement products, superior service, and strong relationships in the financial services industry.
An MYGA annuity – known as a Multi-Year Guarantee Annuity – is an annuity that is issued with a guaranteed interest rate period. This time frame is also the same amount of time that the surrender period on the annuity will last. So, in the case of the NY Eagle Platinum 5 annuity, the rate guarantee and the surrender charge period would last for five years.
Due in large part to the vast amount of volatility that has taken place in the market over the past decade or so, the demand for fixed annuities has grown significantly – primarily as a method for retirees, and those who are saving for retirement, to keep their money safe.
However, due to the historically low interest rate environment that we have been living in for nearly the past decade, unfortunately, the “price” of keeping your principal safe has come in the form of very low returns – returns that usually can’t even keep pace with the rate of inflation. This, then, could have an impact on your future purchasing power and, in turn, your overall retirement lifestyle.
Before we get into the gritty details, here are some necessary legal disclosures…
This is an independent annuity product review. It is not a recommendation to purchase or to sell an annuity. Neither Eagle Life nor American Equity has endorsed this review in any way, nor do we receive any type of compensation for providing this review. This annuity review is meant solely to be an independent review at the request of our readers so that they may see our perspective when breaking down the positives and the negatives of this particular annuity. Prior to committing to the purchase of any type of insurance and/or investment vehicle, it is critical that you do your own due diligence, and that you also talk with a properly licensed professional if you have any questions that relate to your specific situation. All of the names, materials, and marks that have been used in compiling this annuity review are the property of their respective owners.
For additional information on how to compare fixed annuities so that you can decide which may be the best one for you, click here in order to obtain our free annuity report.
How the NY Eagle Platinum 5 Annuity is Described
According to the NY Eagle Platinum product literature, which can be accessed here, this annuity can provide you with a number of benefits, such as:
- Tax-deferred growth
- Avoidance of probate
- Guaranteed income
Because the Eagle Platinum 5 is a multi-year guaranteed annuity (MYGA), the rate will be locked-in for five full years, regardless of what happens in the market or with interest rates during that time.
At the end of the five-year rate lock period, you may elect to:
- Renew the contract for a guaranteed period with the same surrender charge period and your previously elected free withdrawal option
- Annuitize the contract and start receiving annuity income payments for either a set period of time, or for the remainder of your lifetime
- Take a partial withdrawal without surrender charges, and apply the remaining contract value to another rate guarantee period with the same surrender charge period and previously elected free withdrawal option
- Surrender the annuity contract without incurring a surrender charge
The annuity provides some liquidity, as well as different options for accessing your funds – even during the surrender charge period. For instance, if you select the Interest Only Withdrawal Option, you may take free withdrawals of any amount – up to the amount of interest that is credited for that year. (This option starts in the second contract year).
Alternatively, if you choose to go with the 10% free withdrawal option, you may make annual free withdrawals – up to 10% of the contract’s value – also beginning in the second year of the annuity contract.
There are also some additional “bells and whistles” offered. For instance, American Equity of New York has various riders that may increase the amount of liquidity in the event of confinement to a nursing home, or if you are diagnosed with a terminal illness.
To take a closer look at the NY Eagle Platinum 5 consumer product brochure, go here and then click on the product link below.
How a Financial or Insurance Advisor Might “Pitch” this Annuity to You
These days, there aren’t many guarantees that you can count on – especially when it has to do with financial vehicles. So, it’s likely that if you’ve been presented with an MYGA annuity like the NY Eagle Platinum 5 by an insurance or financial advisor, one of the main areas that they’ve keyed in on is the 5-year rate guarantee that comes with this annuity. Here, you are locked into a set rate for the first seven years of owning the product.
But is this necessarily a good thing?
It could work out ok, provided that interest rates remain low for the duration. But if they spike up, then you could feel a bit locked in. In many ways, MYGAs (multi-year rate guaranteed annuities) can be like CDs, as you’ll have your money locked up for a certain amount of time, and are penalized with a withdrawal fee if you take out a funds (in this case, more than 10% of the contract value) during the surrender period. And, both a CD and an MYGA annuity are typically purchased using a single lump-sum premium. (With the annuity, though, you do get the benefit of tax-deferred growth).
It’s also important to pay close attention to the renewal period on an MYGA annuity because sometimes these products will automatically renew – and restart the surrender period – unless you initiate the call to your annuity sales representative/company and let them know that you don’t plan to go with another multi-year guaranteed period of time on the rate.
Plus, as with other fixed annuities over the past ten years or so, the return is nothing to write home about. In fact, you’ll be lucky if you’re able to meet, much less beat, inflation, which in turn could have a negative impact on your future purchasing power.
Fees on the American Equity Life of New York’s NY Eagle Platinum 5 MYGA Annuity
When it comes to fees, most fixed-rate MYGA annuities pay lower commissions (which are oftentimes built directly in, so it won’t have as much of an impact as would a 5 or 6% up-front sales commission.
There are also usually no internal fees on these types of products. So, you’ll know just exactly what your interest rate is, as well as what your account value will be in the future – which is contractually guaranteed.
But, as with other annuities, you will need to ensure that the money you place into the NY Eagle Platinum 5 annuity product isn’t something that you’ll need in the near future. That’s because there are five full years of surrender charges on this annuity.
This means that you’ll incur a withdrawal fee (which grades down over time). Plus, if you opt to renew the contract for another 5-year rate lock period, the surrender charge time clock will start all over again.
If you make any withdrawals, you could also incur taxes. And on top of all that, if you make withdrawals before you turn age 59 1/2, you’ll also be hit with an additional 10% “early withdrawal” fee from the IRS.
The Annuity Gator’s End Take on the NY Eagle Platinum 5 MYGA Annuity from American Equity Life of New York
Where it works best:
This particular annuity will usually work the best for those who are looking for:
- Principal protection
- A guaranteed rate of interest (at least for a set period of time)
- Guaranteed lifetime income in the future
Where it works the worst:
Conversely, this NY Eagle MYGA annuity may not fare so well for those who:
- Want the opportunity for a higher rate of return on their money
- Want to access more than just 10% of the contract value within the first few years (i.e., don’t want their money locked in for a multi-year time period)
- Do not plan on using the lifetime income feature
There are a number of key factors that should ideally be taken into consideration if you are thinking about purchasing an annuity. These should include – but they are not limited to – how the annuity can produce a return, how safe your money will be, how the income will pay out, and whether or not there are any other optional features that may be added to the annuity (as well as any added costs).
If you are considering the purchase of a Multi-Year Guarantee Annuity like the NY Eagle Platinum, then you can be assured that your principal will be safe – no matter what happens in the stock market. You can also count on a guaranteed lifetime income, regardless of how long you may live (provided that you choose the annuity’s lifetime income payout option).
Yet, even with all of the seemingly nice features that are included with this annuity, there could still be a better alternative out there for you – particularly if you are seeking the opportunity for a higher return.
But the only way to really know how this product could perform based on your specific situation and needs is to have it tested. We can do that for you by running the numbers through our annuity calculator, and can then provide you with a spreadsheet showing the results. In order to receive this information, just simply contact us via our secure online contact form here.
Do You Have Any Additional Questions About the NY Eagle Platinum 5 MYGA Annuity? Did You Notice Any Mistakes?
We do understand that this annuity review went a bit long. So, we thank you for sticking with us through to the end here. When creating our reviews, we would much rather “err” on the side of being “too long” as versus not long enough.
Therefore, if you found that this annuity review was helpful for you, then please feel free to forward it on to anyone else that you think may benefit from it. Alternatively, if this review led you to have even more questions, then please let us know that, too.
Are there any other annuities that you would like to see reviewed?
There are lots and lots of annuities available in the marketplace today. So, if you would like to see a particular annuity reviewed, then just let us know the name of the annuity (or annuities), and our team of annuity “geeks” will get on the case. So, be sure to check back soon for the new reviews.
The Annuity Gator
P.S. If you would like to read more of our American Equity annuity reviews here are some links to check out:
- Independent Review of American Equity Investment Life Holding Company.
- Independent Review of the American Equity Investment Life Insurance Company IncomeShield 7 Fixed Indexed Annuity.
- Independent Review of the American Equity Guarantee 6 MYGA Annuity.
- Independent Review of the American Equity Foundation Gold Fixed Index Annuity.
- Independent Review of the American Equity Investment Life AssetShield Fixed Index Annuity.
- Independent Review of the American Equity Life Insurance Company IncomeShield 10 Fixed Indexed Annuity.
- Independent Review of the American Equity Choice 10 Fixed Index Annuity.
- Independent Review of the American Equity Investment Life Insurance Company’s RateShield 7 Fixed Annuity.
- Independent Review of the American Equity Guarantee 5 MYGA Annuity.
- Independent Review of the American Equity Investment Life RateShield 10+ Fixed Annuity with IncomeShield Rider.
- Independent Review of the American Equity Foundation Gold Annuity with Income Rider LIBR 6%.
- Independent Review of the American Equity Guarantee 7 MYGA Annuity.