What is covered in this annuity review?
In this review, we’ll cover the following information on the Brighthouse Financial Fixed Annuity MVA:
- Product type
- Fees
- Current rates
- Realistic long-term return expectations
- How it is 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.
Over the past several years, annuities have become a much more popular component of retirement planning. One reason for this is because, as people are living longer, having a retirement income that lasts much longer is necessary – and unlike any other insurance or financial product in the marketplace, an annuity is the only vehicle that can guarantee you an income for the remainder of your lifetime, regardless of how long that is.
Fixed annuities have become particularly favored by those who are at or approaching retirement time, as people are getting much more leery about entrusting their savings to an extremely volatile stock market.
So, if you’ve been considering a fixed annuity like the Brighthouse Financial Fixed Annuity MVA version because you want to ensure that your money is safe and that you’ll have lifetime income that you can count on, this product could be a viable option for you.
However, before you go out and purchase it “sight unseen,” it is important that you know just exactly how the product works, and how it may – or may not – work for you and your specific financial related objectives.
Annuity and Retirement Income Planning Information That You Can Trust
If this is the first time that you have visited our website, then please allow us to officially welcome you here to AnnuityGator.com. We are a team of annuity pros who focus on offering very comprehensive – and unbiased – annuity reviews. We have been at this for quite a few years now – longer than our competitors. And, because of the in-depth reviews that we provide, we have become a highly trusted source of annuity information online.
Over the past decade or so, however, there have been a number of “copycat” websites that have popped up on the Internet. While some of these can give you information about annuities, what you are likely to find is that they are oftentimes just simply reiterating what our information already shows.
If you have been researching annuities on the Internet lately, it is likely that you also have run across conflicting information regarding these financial vehicles. That really is not surprising, though, as there are many, many annuities out there in the marketplace, and just about everyone seems to have a differing opinion about them.
It could also be that you’ve recently attended an annuity seminar. Here, the presenter may have given you more in-depth details about the Brighthouse Financial Fixed Annuity or its counterpart MVA version (or some other, similar product). In fact, it may even have been your attendance at this seminar that led you here to our site in search of additional information.
In looking at annuities online, it’s also possible that you might have landed on some other annuity marketing websites that focus on luring visitors in for the purpose of obtaining their contact details. These sites will oftentimes do so by making some fairly bold claims about the annuities they offer, such as:
- High Annuity Income Payouts
- Guaranteed Income for Life
- Top-Rated Annuity Carriers
- Low Fees
Look familiar?
But, as great as these claims might initially sound, it is really important that you verify their validity first before you decide to move forward with a long-term financial commitment. Otherwise, it could end up costing you.
That being said, if you are looking for more in-depth information about the MVA version of the Brighthouse Financial Fixed Annuity, then you are definitely in the right place. In fact, dare we say that our Annuity Gator site is the only place online where you can get all of the key details about this annuity so that you can make a well-informed buying (or non-buying) decision.
It is important to note here, however, that in addition to providing you with all of the nice keen benefits of this product, we are also going to lay out the product’s drawbacks. This is so that you will be in a better position to make a truly well-informed decision as to whether or not this is really the annuity for you.
We do want to be clear in that, we believe that annuities are fine products – and they can be quite beneficial to some people – as long as they fit in with your overall financial objectives. This annuity review is here to provide you with what you need to know.
So, with that being said, let’s go ahead and get started!
Brighthouse Financial Fixed Annuity MVA at a Glance
| Category | Withdrawal Charge % |
|---|---|
| 8 | 6 |
| 7 | 6 |
| 6 | 6 |
| 5 | 5 |
| 4 | 4 |
| 3 | 3 |
| 2 | 2 |
| 1 | 1 |
| 0 | 0 |
Opening Thoughts on the Brighthouse Financial Fixed Annuity
Brighthouse Financial is a company that was established by MetLife. The company is considered to be a strong and stable financial company – particularly in the area of life insurance and annuities, and although the company is relatively new in the industry, it has already amassed roughly $219 billion in total assets.
The company, as of September 2018, holds in excess of 2.6 million insurance policies and annuity contracts, and more than $81 billion general account investments. Brighthouse also holds high marks from all of the major rating agencies, including:
- A (Excellent) from A.M. Best
- A (Strong) from Fitch
- A3 (Upper Medium) from Moody’s Investor Services
- A+ (Strong) from S&P
With so much volatility and unpredictability in the stock market over the past several years, the demand for fixed annuities has grown quite a bit, particularly as a way for retirees (and those who are preparing for retirement in the near future) to keep assets safe, and to ensure that they have a stable and reliable income going forward.
Unfortunately, though, due to the historically low-interest rate environment that we’ve been stuck in for nearly a decade now, the return that has been offered by fixed annuities has been very low.
In fact, in many instances, the returns that are obtained on fixed annuities have not even been enough to outpace the inflation rate over time. Because of these low rates, your future purchasing power could be affected – especially if you plan to use the income from a fixed annuity as a primary source of your retirement income down the road.
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. Brighthouse Financial 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 additional information on how to compare fixed annuities so that you can decide which may be the best one for you, in order to obtain our free annuity report.
How Brighthouse Describes the Fixed Annuity MVA
Brighthouse Financial describes its Fixed Annuity MVA product as an effective way to save for retirement that provides guaranteed growth that is protected from market volatility.
This is a single premium fixed deferred annuity with a minimum purchase payment of $25,000 and the maximum – at least without prior approval – is $1 million. With this annuity, you have options that you can choose for your initial rate guarantee period. These include three, five, or seven years – which correspond to the length of the annuity’s surrender period (although any annuity purchase should be considered a long-term commitment).
While this might sound similar to the Brighthouse Fixed Annuity, there are some subtle differences. For example, the MVA (market value adjustment) version allows Brighthouse to change the guaranteed interest rate after a guarantee period has expired.
Life insurance carriers will typically invest in bonds and other assets for the purpose of generating the income it needs for making the annuity’s interest payments. Because a market value adjustment feature gives the insurance company some protection against falling interest rates, the insurer can, in turn, offer higher initial rates on their annuity contract with MVA features.
NOTE THAT BRIGHTHOUSE IS ALSO ADDING 0.15 PERCENTAGE POINTS TO THE BASE INTEREST RATE FOR CONSUMERS WHO PURCHASE THE MVA VERSION OF THE ANNUITY, RATHER THAN THE TRADITIONAL FIXED VERSION.
Just like the traditional Fixed Annuity from Brighthouse, there are some other “bells and whistles” on this annuity version, too – including a nursing home waiver and a terminal illness waiver.
And, as with many other annuities, there is a death benefit included whereby upon the annuitant’s death, a named beneficiary (or beneficiaries) will receive the greater of the remaining account value or the minimum withdrawal value.
For more information on the Brighthouse Financial Fixed Annuity MVA, you can check out their website HERE.
In addition, you can also check out updated rate information HERE.
How an Insurance or Financial Advisor Might Pitch this Annuity to Customers
If you’re like most people, you probably love guarantees – especially as it pertains to your money. So, if you’ve been approached by an insurance or financial advisor about the Brighthouse Financial Fixed Annuity MVA, it’s likely that he or she zeroed in on the interest rate guarantee on this product. They may also have indicated that if you go with the MVA version of the Fixed Annuity contract, you could receive a little bump in your rate.
On top of that, you can also count on a lifetime stream of income for the remainder of your life, if you choose the lifetime income option. This can help to alleviate the worry about running out of income in your later years…which is becoming a growing concern as more people are living longer life spans today.
But, while these guarantees may help you to sleep a bit better at night, the reality is that such benefits can oftentimes come at a cost – this being the low rate that is offered, and in turn, the inability to beat, or even meet, future inflation. This could equate to a step backward in future lifestyle, as it could hinder your ability to keep up with the rising cost of the goods and services you need in retirement.
With that in mind, you really need to determine whether or not you are willing to take the “tradeoff” here – in other words, giving up the opportunity for more growth in return for keeping your principal safe.
What About the Fees on the Brighthouse Financial Fixed Annuity MVA Product?
You may also run into some fees on the Brighthouse Financial Fixed Annuity MVA version – namely if you opt to withdraw more than 10% of the contract’s value during the surrender period. With this particular annuity, the longer the rate guarantee period, the longer the surrender period will be.
So, for instance, if you choose the 7-year rate guarantee, then you will incur a surrender charge on the month you take out of the annuity over and above 10% for the first seven years you own it. The amount of these fees starts at 7%, and they gradually grade down over time.
Plus, if you make withdrawals before you turn age 59 ½, you could also incur an additional 10% “early withdrawal” fee from the IRS. With that in mind, know that the money you contribute to this (or any) annuity is for the long haul.
The Annuity Gator’s End Take on the Brighthouse Financial Fixed Annuity MVA
Where it works best:
This particular annuity will usually work the best for those who are looking for:
- Guaranteed lifetime income
- Safety of principal
- Slow and steady growth over time
- A slightly higher initial interest rate than the traditionally fixed annuity contract from Brighthouse Financial
Where it works the worst:
The Brighthouse Financial Fixed Annuity MVA may not be an ideal fit if you:
- Want access to most or all of your funds within the first several years (during the surrender period)
- Are seeking a high rate of return on your money
- Do not anticipate using the funds for a long-term care need
In order to know how to really compare the best annuity options for you, so that you can download our free annuity report.
In Summary
There is literally a myriad of factors that should be taken into consideration when you are determining which annuity is right for you – of even IF any annuity is right for you. In any case, though, annuities should always be considered as long-term financial endeavors, and because of that, you should feel comfortable that the one you ultimately go with can help you to reach your goals.
If you are still leaning towards the purchase of a fixed annuity, you can certainly be assured that your principal will be safe, and in this case, that you will have a certain rate of return to count on, no matter what is happening in the stock market.
However, even with these nice benefits, the Fixed Annuity MVA from Brighthouse Financial could still fall somewhat short – and quite frankly, there very well could be a better option out there for you – particularly if you are focused on getting a guaranteed lifetime income in retirement AND the opportunity to earn a higher rate of return.
If you still have any questions with regard to whether or not this annuity is right for you – or, even if you just simply need some additional guidance about annuities in general, then please feel free to reach out to us directly via our secure contact form here.
Do You Have Any Additional Questions or Concerns Regarding the Brighthouse Financial Fixed Annuity MVA? Did You Happen to Notice Any Mistakes in this Annuity Review?
While this review of the Brighthouse Financial Fixed Annuity MVA did run a bit long, our feeling here is that we would much rather provide you with too many details as versus not nearly enough. Therefore, if you did find this review helpful to you, then please feel free to share it with others that you think might benefit, too.
We also understand that annuity product information can change frequently. Therefore, if you happened to notice that any of the information in this annuity review was incorrect, then please let us know and we will do our best to get that updated as soon as possible.
Also, if this annuity review made this product even more confusing – and/or if it happened to spark any additional questions or concerns – please let us know that, too and we will work to make the information clearer.
Are there any other annuity reviews that you would like to see posted on our website?
If so, we’ll get on it! Just simply tell us the name of the annuity (or annuities, if more than one) and our highly trained team of annuity “geeks” will start working on those – so be sure to check back soon for updates, as well as a whole host of new annuity reviews!
Best,
The Annuity Gator
P.S If you would like to read more of our Brighthouse Financial annuity reviews here are some links to check out:
- Brighthouse Financial Shield Level Selector Annuity – [November 2018 Update]
- Brighthouse Financial Fixed Annuity
