What We Will Be Covering in this Annuity ReviewIn today’s review, I’ll be covering the following information on the American National Palladium 6 MYGA (Multi-Year Guaranteed) Annuity:
- Product type
- Current rates
- Realistic long-term return expectations
- How this annuity is best used
- How it 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 in the process of researching annuities so that you can grow your savings and have a steady, guaranteed income in retirement, then having a product like the American National Palladium MYG 6 annuity could be a good option for you. That’s because this particular annuity can offer you a simple, yet a guaranteed way of building your retirement assets without risk to your principal. But, before you go out and commit to purchasing this annuity – or for that matter, any annuity, it is important that you have a good understanding of just exactly how it works, and how it may – or may not – work with your specific short- and long-term financial goals. Over the past few years, due in large part to the continuous ups and downs of the market, annuities have become much more popular – especially as investors strive to find ways of ensuring an income in retirement that will last as long as they need it to. However, due to the increased demand for these financial products, insurance companies have been coming up with “new and improved” annuities, many of which include a lot of bells and whistles. This, however, is not necessarily a good thing. One reason for this is because it makes an already confusing product even more confusing – which can be somewhat of a detriment when you’re considering plunking down a sizeable chunk of your retirement savings into it. So, unless the insurance or financial advisor that you work with has a focus on offering annuities, then you should really do some additional research on annuities so that you know exactly what it is that you’re getting into.
Annuity and Retirement Income Planning Information You Can TrustIf 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. You may also have recently attended a seminar about annuities, where the presenter – in return for a free dinner or lunch – had you sit through their talk about the in’s and out’s of the American National Palladium MYG 6, or some other similar annuity product. It could even have been your attendance at that seminar that has ultimately brought you here to our website, searching for additional information. You may also, in your quest for more details, have come across some of the 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
American National Palladium MYG 6 Annuity at a Glance
|Product Name||Palladium 6|
|Type of Product||MYG (Multi-Year Guarantee) / Fixed Annuity|
|S&P Rating||A (Excellent)|
|Phone Number||(800) 252-9546|
Opening Thoughts on the American National Palladium MYG 6 AnnuityAmerican National Insurance Company – also known simply as ANICO – has been in the business of offering their customers security through coverage products for more than 110 years. This company was initially founded in 1905, and since then, it has evolved into a well-respected member of the life insurance and annuity industry. The company offers a long list of product offerings, including annuities, life insurance, accident and health coverage, P&C coverage, and pension plans products and services. These are all distributed both career/captive and independent insurance and financial representatives. Given its strong financial backing, American National has received high marks from the insurer rating agencies, including an A from Standard and Poor’s, and an A from A.M. Best Company. American National is headquartered in Galveston, Texas. 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. Yet, even though this might sound like a 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 annuity product review. It is not a recommendation to purchase or to sell an annuity. American National 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 out 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 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 American National Describes the Palladium MYG 6 AnnuityAmerican National describes the Palladium MYG 6 annuity as a single premium fixed deferred annuity for those who desire an attractive fixed interest rate, and the ability to grow earnings on a tax-deferred basis. With the Palladium MYG annuity from American National, you are able to choose from one of several guarantee periods – in this case, six years – and lock in a competitive accumulation interest rate for that time period. When this six-year guarantee period has ended, Palladium MYG gives you the option of either:
- Withdrawing all of the money without penalty, within a special 30-day window of time, or
- Continuing the annuity and earning an annual effective interest rate, which is declared annually on the anniversary date of the annuity.
How an Insurance or Financial Advisor Might “Pitch” This Annuity from American NationalGiven that many investors today are shying away from the volatile stock market, it is likely that if you’ve been presented this particular annuity by a financial or insurance advisor, he or she keyed in on the guaranteed features. Many investors today – especially those who are approaching retirement – want to be sure that their money is safe. And, while your funds in the American National Palladium MYG 6 annuity may be protected from the ups and downs of the stock market, they can still be hindered in other ways. For instance, because of the exceptionally low-interest rate environment that we have been in for roughly a decade now, it is likely that the rate of guaranteed interest you receive may not be enough to beat – or even to meet – future inflation. This being the case, you could end up losing purchasing power in the future, when you need to rely on your investment income the most. Also, the renewal rates for any subsequent guarantee periods will be based on current interest rates and financial circumstances that are in effect at the time of your renewal – so they could differ from your original rate. Given that, if rates fall further, you may end up with an extremely low rate of return on your money here. It is important to be careful, especially if you are being presented this – or any – annuity by an advisor who will earn a commission on the sale. That’s because they may lean much more towards presenting you with all of the rosy, positive features, yet leave out the features that may be considered as drawbacks. With that in mind, if you are not 100% sure that the American National Palladium MYG 6 annuity is right for you, or if you still want to get answers to more of your questions, then please feel free to reach out to us directly here via our secure online contact form. We agree that annuities can be somewhat confusing – even for well-educated consumers. This doesn’t mean that they are bad products. But it does mean that you want to ensure that much more than the one you choose will be right for you. So, if you would like to have any additional information, along with the assurance that you know what it really is that you are purchasing, click here now to download our free report on what you need to know prior to purchasing an annuity.
What About the Fees for this Product?Although fixed annuities can sometimes seem to offer a “best of both worlds” scenario – given their guaranteed growth and their protection of principal – along with the added bonus of a guaranteed lifetime income in retirement, these products also have a few drawbacks, starting with the plethora of fees that you may be charged. In this regard, the American National Palladium MYG 6 annuity is no exception. Here, you will incur an up-front sales commission of 2.50%. In addition, even though in the first policy year, all of the interest that is earned may be withdrawn, you will also be hit with a surrender charge if you withdraw more than 10% of the contract’s value. These surrender charges last for 10 full years (other than in the state of California, where they last for nine full years).
American National Palladium MYG 6 Annuity Surrender Charges (All available states except for California)
American National Palladium MYG 6 Annuity Surrender Charges for California
The Annuity Gator’s End Take on the American National Palladium MYG 6 AnnuityWhere 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
- 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 10 full years (in most states)
- Do not plan on using the lifetime income feature