What will we be covering in this review of the ForeAccumulation 6 Forethought Fixed Indexed Annuity?In this Forethought annuity, we will be going over the following important details:
- Type of annuity
- Realistic performance expectations
- Where the annuity is best used
- How the annuity is most poorly used
Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in. We make the complex, simple.If you’ve been considering the purchase of an annuity because you want to your money to grow, while at the same time being protected from market downturns – and also have the assurance of receiving an ongoing lifetime income stream in retirement, then this Forethought fixed indexed annuity from Global Atlantic Financial Group (and offered via Forethought Insurance Company) might be a good option for you. However, before you run out and make a long-term commitment on this Forethought annuity – or any – annuity, it is essential that you first have a good understanding of how the product works, and whether or not it may ultimately be the best fit for your financial goals. Throughout the past several years, the popularity of fixed indexed annuities has risen substantially. One of the primary reasons for this is because the annuities are considered by many to offer the best of all worlds. What exactly does that mean? For one thing, a fixed indexed annuity will provide you with the ability to attain a return that is linked to an underlying market index (or multiple market indices) such as the S&P 500. But, if the market index performs poorly, you don’t have to worry about losing your hard-earned principal. On top of that, the growth that takes place inside of the annuity is tax-deferred, meaning that there is no tax due on this gain until the time it is withdrawn – and that can allow for a nice compounding of your funds. In addition, just like with other types of annuities, the fixed indexed version also allows you to opt for a guaranteed lifetime income in retirement. So, you can count on receiving incoming cash flow for as long as you (as well as your spouse or partner, if applicable) may need it. But first, there are some things you need to be aware of, such as how much it could “cost” you to get out of an annuity if you discover after you purchase it that it really isn’t going to do what you want it to do. That’s not to say that these types of annuities are bad. In fact, they aren’t – and they can be an integral component of your overall retirement portfolio – as long as they fit in with your specific financial needs and goals…and that you are completely aware of that the “tradeoffs” may be for securing the benefits the annuity can offer you. That’s where the Annuity Gator can help.
Annuity and Retirement Income Planning Advice You Can TrustIf this is the first time that you have been to our website, we would like to personally welcome you here to AnnuityGator.com. We make up a team of experienced financial professionals who are dedicated to providing in-depth reviews of annuity products. We’ve been doing this for a number of years now – far longer than most of our “copycat” competitors – and because of that, we have come to be known as a highly trusted source of annuity information online. If you’ve been looking for information about annuities via the Internet, then it is likely that you have come across many conflicting details about these financial vehicles. This isn’t really very surprising, though, because there are a lot of opinions (both positive and otherwise) about these products floating around the Internet. Although there are actually many different websites online that focus on providing annuity products and information, there are some that will attempt to lure you in with some pretty bold claims like:
- Lowest fees
- Highest income payouts
- Guaranteed lifetime income
- Top-rated companies
The Forethought ForeAccumulation 6 Fixed Index Annuity at a Glance
|Product Name||ForeAccumulation 6|
|Issuer||Global Atlantic Financial Group / Forethought Insurance Company|
|Type of Product||Fixed Index Annuity|
|S&P Rating||A- (Strong)|
|Phone Number||(866) 462-8992|
|Website||https://www.globalatlantic.com / https://forethought.com|
Opening Thoughts on the Forethought ForeAccumulation 6 Fixed Index AnnuityThrough its subsidiaries like Forethought Insurance Company, Global Atlantic Financial Group offers a wide range of retirement and life insurance products that can help them to customize wealth accumulation and protection, as well as future income, asset transfer, and legacy needs. The company is relatively new – particularly in relation to centuries-old insurance carriers with long histories that have plowed through both good and bad markets throughout the years. Global Atlantic came about in 2004, initially as Goldman Sachs Reinsurance Group. With several acquisitions, the company grew, and in 2013, it separated from Goldman and incorporated as Global Atlantic Financial Group Limited. Today, Global Atlantic is a privately held firm, with approximately 1,500 owners/shareholders that primarily comprise management, employees, individuals, and institutions. Strong and stable financially, Global Atlantic’s insurance companies have high ratings, including an A (Excellent) from A.M. Best, and A- (Strong) from Standard & Poor’s, and an A3 (Stable) from Moody’s Investor Services. As one of Global Atlantic’s subsidiaries, Forethought Life Insurance Company holds nearly $30 billion in assets. Over the past several years, annuities have become a very popular financial product – particularly for retirees and those who are approaching retirement. One of the biggest reasons for this is because an annuity will allow your money to grow tax-deferred, and it can also provide you with a lifetime stream of income that you literally cannot outlive. Fixed indexed annuities, in particular, have become a top choice for investors, as they allow the opportunity to earn higher returns than a regular fixed annuity, while at the same time keeping your principal safe from volatile market movements. Yet, even though this might sound like a win-win-win situation, the reality is that if something sounds like it may be too good to be true, then it typically is – so you should ideally get as much in-depth detail as possible if you are considering committing to it for the long term.
Before we get into the gritty details, here are some necessary legal disclosures…This is an independent Forethought annuity review. It is not a recommendation to purchase or to sell an annuity. Forethought Insurance Company or Global Atlantic have not 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. Before purchasing any type of insurance and / or investment product, it is important that you do your own due diligence, and that you consult a properly licensed professional if you should have any specific questions that relate to your individual situation. All of the names, marks, and materials that were used for this Forethought fixed indexed annuity review are the property of their respective owners. For more information on how to compare annuities in order to determine which one may be the best for you and your financial circumstances, click here to obtain our free annuity report.
How Forethought Insurance Company/Global Atlantic Describe the ForeAccumulation 6According to Global Atlantic’s website, the ForeAccumulation fixed indexed annuity can provide you with the opportunity to grow your money while knowing that you will never experience decreases from poor market performance. With the annuity’s optional Enhanced Death Benefit, or EDB, you can also leave a legacy to your beneficiary (or beneficiaries). With ForeAccumulation, you can essentially “personalize” your retirement growth potential via a variety of interest crediting options. And, if you also want predictable growth, you may choose a competitive fixed rate. In any case, though, you cannot lose money in this Forethought annuity – at least not due to poor underlying market or index performance. One reason for that is because you are not actually purchasing shares of any index or investment. Therefore, your money is not subject to the volatility of any markets. The optional enhanced death benefit is actually a separate component from the annuity’s contract value. This benefit can provide you with steady and predictable growth, which in turn, can provide your loved ones with a legacy. Each year, this benefit grows by a guaranteed 7% of premium, for up to 15 years. Then, if you pass away while still owning the annuity, your beneficiary(ies) will either receive the enhanced death benefit amount, or the amount of your contract value – whichever is more. (Note that if you do not opt to include the enhanced death benefit feature, your annuity’s contract value will pass on to your named beneficiary(ies) – guaranteed. For more details on the features on this Forethought fixed indexed annuity, you can check out the product highlights on the Global Atlantic website HERE.
How an Insurance or Financial Advisor May Pitch This Forethought Annuity to Clients or ProspectsToday, people are living much longer than ever before – and, while that can be positive in many respects, it can also bring about the worry of outliving your income in retirement. With many people who are preparing for retirement being concerned about growing their savings, while at the same time keeping their principal safe, it is possible that an insurance or financial advisor would present this annuity as a vehicle for accomplishing both of those goals. Plus, there is also the option to choose income for life with this annuity. What the agent may or may not heavily focus on, however, is the “fine print” – which can more clearly explain some of the “tradeoffs” that you’ll need to make in order to garner some of the benefits. For instance, if you opt to add the Enhanced Death Benefit (EDB) feature, it can “cost” you more than 1% per year – and this can eat into the ultimate return that you receive from the annuity – especially over a long period of time. In addition, most annuities – including the Forethought ForeAccumulation 6 fixed indexed annuity – come with surrender fees if you withdraw more than 10% of the contract’s value during the surrender, or withdrawal, charge period. On top of that, if you are under age 59 ½ when you make a withdrawal, Uncle Sam will charge you with an additional “early withdrawal” penalty of 10% (of the withdrawal amount). So, the purchase of this Forethought annuity, (or any) annuity should always be considered a long-term financial commitment. This means that you definitely should not contribute funds that you anticipate needing for emergencies or other obligations over at least the next six years.
The Annuity Gator’s End Take on the Global Atlantic ForeAccumulation 6 Fixed Indexed Annuity:Where it works best: This particular Forethought annuity will usually work the best for those who are looking for:
- The opportunity to obtain a higher rate of growth than that of a regular fixed annuity
- Safety of principal
- A way to leave a legacy for loved ones
- Lifetime income
- Want or need to access their funds penalty-free within the surrender charge period (and/or before they turn age 59 ½)
- Do not intend to use the guaranteed lifetime income feature
In SummaryThere are a number of factors that should be considered before you commit to a long-term financial product like an annuity. If you are still leaning towards purchasing a fixed index annuity like the ForeAccumulation 6 from Global Atlantic/Forethought Insurance Company, you can definitely be assured that your principal will be safe from the ups and downs of the stock market, as well as that you will have a future retirement income that you can count on. But in reality, the only way to really know if this particular Forethought annuity (or any) is right for you is to have it tested. We can do this for you providing you with an in-depth and personalized spreadsheet showing how the annuity may perform given your specific parameters. In going this route, you could find that the ForeAccumulation 6 annuity fits the bill for you – or, you may also find out that there could be some other product(s) out there that work better for you and your particular situation. If you would like to move forward with “testing” this annuity for your specific needs – at no cost and no obligation – then just simply let us know here via our secure online contact form.
Still Have More Questions About the ForeAccumulation 6 Annuity? Did You Happen to Notice Any Mistakes in this Forethought Annuity Review?We understand that this Forethought annuity review ran a bit on the long side. So, we thank you for sticking with us here to the end. However, when we are creating our reviews here at AnnuityGator.com, we would much rather “err” on providing “too much” information for our readers rather than not enough. That way, you will be in a better position to make a truly informed decision as to whether or not a particular annuity product is right for you. In addition, we also know that annuity information can – and often does – change on a regular basis. So, if you happened to notice any details in this Forethought ForeAccumulation 6 fixed indexed annuity review that may need to be updated or revised, then please let us know that as well, and we will be happy to make any of the needed changes here. Likewise, if reading over this review caused even more confusion about this product, then please click here in order to let us know that too. Are there any other annuities that you would like to see reviewed on our website? If so, just let us know the name of the product (or products), and we will get right on it. You can access our extensive annuity review database through our website HERE. Best, The Annuity Gator. P.S. If you would like to read more of our Forethought ForeAccumulation annuity reviews here are some links to check out:
- Independent Review of Forethought Life ForeCare Fixed Annuity.
- Independent Review of Forethought SecureFore 5 Fixed Annuity (MYGA).