What Will Be Covered in this Annuity Review
In this annuity review, we will be going over the following details regarding the AIG (American General) American Pathway SolutionsMYG Annuity:
- Product type
- Current rates
- Realistic long-term return expectations
- How 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 have been thinking about purchasing an annuity because you want the assurance of not running out of income in retirement, and you want to know that your principal is safe, then the AIG (American General) American Pathway SolutionsMYG Annuity could be a viable choice for you.
But, before you go full steam ahead with getting this annuity, it is highly recommended that you first have a much more in-depth idea about how the product works – as well as how it may (or may not) be aligned with your specific financial goals.
Then, once you are much more familiar with it, you can feel more comfortable with either moving forward with a purchase, or passing on this annuity and moving on to one that is more beneficial to you.
As our life expectancy has gotten longer, deferred fixed annuities have become much more popular – particularly with retirees and those who are approaching this time in their lives. This is because these annuities can allow you to receive an ongoing stream of income far into the future – and that income can last for as long as you need it, regardless of how long that may be.
Yet, even though this can sound very enticing, you really need to know what the other features of the annuity are, as they could actually be drawbacks – and because of that, the downfalls could possibly outweigh the income benefits that you’d get down the road.
With that in mind, unless the advisor that you work with has a primary focus on selling annuity products, you really should do some additional research on these products, as they will oftentimes require that you deposit a large chunk of your savings into them.
That’s where the Annuity Gator can come in!
Annuity and Retirement Income Planning Information That You Can Trust
If this is the first time you have visited our website, please allow us to personally welcome you to AnnuityGator.com. Here, we make up a team of annuity professionals who focus on offering highly comprehensive, yet unbiased, annuity reviews.
We have been doing this for quite some time now – and far longer than our competitors have – and because of that, we have come to be known as a highly trusted source of annuity information online.
Throughout the past decades or so, though, a number of “copycat” websites have sprung up on the Internet. But even though some of these sites can give you information about annuities and their benefits, what you are more likely to find is that these websites are often just reiterating the information that our website has.
If you have spent any amount of time looking for annuity information online, then it is likely that you may also have run across some conflicting details about these financial vehicles. This isn’t really all that surprising, though, as there are a lot of annuities out there today, and everybody seems to have a differing opinion about them.
In your research for more information about annuities, you may have run across some other sites that discuss annuities online. While these may initially seem informative, many of these websites are actually just trying to lure people in – in order to collect your contact information – by making some pretty bold claims, such as:
- High Annuity Income Payouts
- Guaranteed Income for Life
- Top-Rated Annuity Carriers
- Low Fees
Does this look familiar?
The reality is, however, that as great as these claims might sound, it makes it even more important that you first verify their validity before you move forward with a long-term financial commitment, just like you would likely do before purchasing any other type of “high ticket” item.
If you’ve been on a mission to obtain more details on the AIG (American General) Pathway SolutionsMYG Annuity, then you are in the right place. In fact, we dare say that our website is the only place online where you will be able to get all of the key information that you require for making a well-informed decision as to whether or not this is the right financial vehicle for you.
This includes the good, the bad and yes, even the ugly details. That is because we feel that the only way to make a good decision is to have all of the information – and not just the good and “rosy.”
Just to be completely clear here, we want to state that we feel that annuities can – and often do – provide people with some really great benefits. This, however, is really only the case provided that the product fits in well with your other financial needs and goals.
With that said, let’s dive in!
AIG (American General) American Pathway SolutionsMYG Annuity at a Glance
|Product Name||American Pathway SolutionsMYG|
|Type of Product||Multi-Year Guarantee Annuity (MYGA)|
|Phone Number||(800) 888-2452|
Opening Thoughts on the American Pathway SolutionsMYG Annuity
AIG has been in the business of offering financial growth and protection products for nearly a century. In 1919, the company was actually begun in Asia, and over the years, it has grown and expanded exponentially. AIG now has more than 90 million customers and policyholders who span from 100 countries around the globe.
Because of its strong financial foundation, AIG has received high marks from the insurer rating agencies, which include the following:
- Standard & Poor’s – A+
- A.M. Best Company – A
- Moody’s Investor Services – A2
Because of the up and down stock market, there are many investors who are more and more leery about trusting their hard-earned savings to such volatility. In fact, the demand for fixed-rate annuities – which are always backed by insurance companies – has been steadily increasing ever since market volatility has become the norm rather than the exception over the past several years.
The biggest fear on the minds of most retirees today is that of running out of money in retirement. Because of that, many people are seeking a safe harbor for their money where they can earn at least some amount of return, while at the same time making sure that their savings are safe. This is how a fixed annuity can help.
Unfortunately, though, due to the historically low-interest rate environment of late, the return that is offered by most fixed annuities today is so low that it won’t even meet or beat the rate of inflation. And, due to the fact that most annuities will enforce a surrender charge if you want to get out of the contract within the first several years of getting in, changing your mind once you have purchased a fixed annuity isn’t going to be a good option either. This is why it is so important to understand just exactly what it is that you are purchasing before you make the commitment and jump in.
Before we get into the in-depth details, we have some legal disclosures to present…
This is an independent annuity product review. It is not a recommendation to purchase or to sell an annuity. AIG / American General has 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. 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 more details 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 AIG / American General Describes the SolutionsMYG Annuity
According to AIG, the American Pathway SolutionsMYG Annuity is a single premium product that balances stability and choice, along with an opportunity to grow your annuity value over time – and then to convert it to income in the future.
With this annuity, you will have the option to choose a guaranteed interest rate period of five, six, seven or ten years (in most states). Also, regardless of future economic conditions, your annuity will be guaranteed to renew at or above the minimum interest rate (which, by the way, is not the same thing as your guaranteed initial interest rate – so be sure to be mindful of that).
There are some added features on the American Pathway SolutionsMYG annuity, including an early withdrawal charge waiver in certain situations. For example, after the first contract year, withdrawal charges will be waived if the owner of the annuity cannot perform two or more of the six defined activities of daily living for at least 90 consecutive days, as is written by a licensed health care practitioner. These activities include bathing, continence, dressing, eating, toileting, and transferring.
For more of the in-depth details regarding the American Pathway SolutionsMYG Annuity, you can check out the product overview HERE and/or check out the information that is listed on the AIG website HERE.
How an Insurance or Financial Advisor Might Pitch this Product to their Clients
Because the American Pathway SolutionsMYG annuity offers income that will be available long into the future, it is likely that an insurance or financial advisor who is offering this product will key in on that guaranteed income feature.
In fact, research from various retirement industry groups has shown that Americans are highly concerned about having enough money saved to support a comfortable retirement lifestyle. But the guaranteed lifetime income feature on this annuity can help with putting that concern to rest.
It is also nice to know that, regardless of what occurs in the stock market, your money will be safe in this annuity – and it will continue to receive a guaranteed interest rate throughout the time frame you’ve selected, as well as has a minimum rate guarantee after that.
But, while this might sound nice, it is also important that you have a good understanding of the “tradeoffs” that might be required in order to have access to such benefits. For instance, fixed annuities are not known for offering high returns – and in many instances, especially due to the low-interest-rate environment we’ve been in for the past decade or so, you would be lucky to meet, much less beat, inflation with this particular contract.
Therefore, if the income that you are counting on from this annuity will make up a significant portion of your incoming cash flow in retirement, you could have a difficult time keeping up with the rate of inflation – and therefore, purchasing power – going forward. This, in turn, could force you to have to cut back on buying the items and the services that you need down the road.
What About Any Fees on the American Pathway SolutionsMYG Annuity?
Although there is no up-front sales charge or administrative fees, don’t let that lull you into believing that you won’t have any type of fees at all with this product, because that is just simply not the case.
One of the biggest hindrances is the surrender charges that you could incur if you withdraw 15% or more of the contract value. If that happens, you could be subject to a withdrawal charge. The amount of this withdrawal charge – as well as the length of the surrender charge period – will depend on the initial interest rate guarantee period that you select. That is because the length of the surrender charge period runs concurrent to that same time frame.
So, for instance, if you choose the six-year interest rate guarantee, you’ll have a surrender charge period of six years. Likewise, if you choose to go with the ten-year rate guarantee period, then you will be locked into a ten-year surrender charge period.
American Pathway SolutionsMYG Annuity Surrender Charge Schedule
On top of possibly incurring a surrender charge to withdraw your own money, you could also be hit with an additional charge of 10% by the IRS as an “early withdrawal” penalty if you make such a withdrawal before you turn age 59 1/2.
The Annuity Gator’s End Take on the American Pathway SolutionsMYG Annuity from AIG / American General
Where it works the best:
This annuity could be a good option for those who are seeking the following:
- A fixed rate of interest over time
- Safety of principal, regardless of what happens in the market
- A lifetime income that you can count on
Where it works the worst:
On the other hand, this annuity might not be a viable option if you:
- Want the potential for higher growth
- Need to access your money during the annuity’s surrender period
- Do not plan to use the lifetime income feature
There are a number of important criteria that you should really consider if you are thinking about purchasing an annuity. These factors should ideally include – but are by no means limited to – how the annuity produces its return, how safe your money will be while inside of the contract, how the income will pay out, and whether or not there are any other features that will be beneficial to you now and/or in the future.
If you’ve been considering the purchase of a deferred fixed annuity like the AIG/American General American Pathway SolutionsMYG Annuity, you can be assured that your money will be safe (no matter what happens in the market), and that you will also be able to count on a steady stream of income for the rest of your life – regardless of how long that may be.
However, there may also be some additional items that you have not considered – and the only way to really know if a particular annuity is going to be right for you is to have it tested. We can provide this testing for you and can offer you a free, no obligation, spreadsheet with the results. So, if this is something that is of interest to you, then all you need to do is simply reach out to us here via our secure online contact form.
Have Any More Questions Regarding the American Pathway SolutionsMYG Annuity from AIG / American General? Did You Happen to Notice Any Mistakes in this Review?
We realize that this annuity review went a bit on the lengthy side, and for that, we do appreciate you sticking with us through it thus far. That being said, however, we feel like it is much more beneficial to provide readers with “too much” information than with not enough. So, if you found that this annuity review was beneficial to you, then please do feel free to forward it on and to share the review with anyone else that you think could also benefit from it.
We also understand that the many, many details regarding annuities can, and often do, change. Therefore, if you did happen to notice any information in this annuity review that is in need of updating, then please let us know that, too, and we will get on the revisions right away.
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