What We Will Cover in this Annuity ReviewIn this review, we will be discussing the following details regarding the American National Palladium MYG 7 Annuity Product:
- Product Type
- Current Rates
- Realistic long-term return expectations
- How this annuity is best used
- How it is most poorly used
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For those who have been thinking about purchasing a fixed annuity because you want to know that your principal will be safe and that you will also obtain a guaranteed lifetime income in retirement, then the American National Palladium MYG 7 fixed annuity could be a viable alternative for you. One reason for this is because this particular annuity can provide you with an interest rate guarantee for seven years. In addition, it can also provide you with a lifetime income stream in the future, which can help to alleviate the worry of running out of income in retirement. Yet, as enticing as these benefits might sound, you really shouldn’t go out and purchase this – or any – annuity unless or until you have an in-depth understanding of just exactly how the product works, and how it may or may not work for you. Throughout the past decade or so, due in large part to the constant ups and downs of the stock market, fixed annuities have become quite popular. This is especially the case for those who are retired, or who are in the process of preparing for that time in their lives. With their income guarantees, as well as the fact that your principal is kept safe, fixed annuities may seem to be the best of all worlds for investors. But, just like with any other type of annuity, you need to proceed with caution. For example, the American National Palladium MYG 7 (multi-year guarantee) is a product that has some “moving parts,” and along with this can come a myriad of “fine print” that you really need to check into before you commit a large amount of money to this annuity.
Annuity and Retirement Income Planning Information You Can TrustIf this is your first visit to our website, we would like to officially welcome you to AnnuityGator.com. We are a team of experienced annuity professionals who focus on offering comprehensive – and unbiased – annuity reviews. We’ve been at this for quite some time now – and much longer than our competitors. Because of this, we have come to be known as a very trusted source of annuity information online. However, over the past several years, a number of other “copycat” sites have also started springing up all over the Internet. If you’ve spent any amount of time searching for information about annuities online, it is likely that you have also run across some highly conflicting details about these products. This, however, is not all that surprising, as there are many, many annuities out there in the market, and everyone seems to have differing opinions about them. It is also possible that you recently attended an annuity seminar where the presenter provided you with information about the American National Palladium MYG 7, or some other similar annuity. This seminar may even be what has ultimately led you here to our website in search of additional details. In your quest for annuity information online, you may also 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
The American National Palladium MYG 7 Annuity at a Glance
|Product Name||Palladium 7|
|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 7 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. Throughout the past several years, fixed annuities have grown in popularity, especially for those who have a goal of keeping their principal safe from market fluctuations, as well as those who want to know that they can count on an income for the remainder of their lives. But, even though these features and guarantees might initially sound ideal, the truth is that if something sounds too good to be true, it just might be. So, given that, it is important that you gather as many of the details as you possibly can before you move forward with purchasing this, or any other, fixed annuity.
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 7 AnnuityAmerican National describes the Palladium MYG 7 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, seven years – and lock in a competitive accumulation interest rate for that time period. With the 7-year MYG annuity, you may also be eligible for a first-year interest rate enhancement. (This is not the case on some of the other Palladium MYG annuity options from American National). Even with the first year rate enhancement, though, the declared accumulation interest rate still applies throughout the guarantee period. When this seven-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 NationalWith many investors today still shying away from the volatile stock market (particularly those who are approaching retirement), 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. Given that, you can be assured that your money will be safe from choppy market conditions. However, even with the nice list of guarantees that are offered on the MYG 7 annuity, your money could still be at risk in other ways. For example, due to the historically 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. So, unless you are completely convinced that the American National Palladium MYG 7 annuity product is the one for you, please feel free to reach out to us with any additional questions that you may have.
Are There Any Fees on the Palladium MYG 7 Annuity from American NationalOn top of the low rate of interest that you’re likely to get with the American National Palladium MYG 7 annuity, there are some additional “hits” that your money can take, due to various fees and charges. For instance, with this annuity, you will incur an up-front sales commission of 2.5%. Also, even though you are allowed to withdraw all of the interest that is earned on this annuity during the first year, you will be hit with a surrender charge for the first 10 years if you withdraw more than 10% of the contract value. These charges begin at 8% of the amount withdrawn, then they gradually grade down over time.
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 7 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 ten full years (in most states)
- Do not plan on using the lifetime income feature