What’s Covered In This Review
In this annuity review, we will be covering the following details regarding the Farm Bureau Life Select IV Portfolio 10 Fixed Annuity:
- 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.
If you have been considering moving forward with the purchase of annuity because you want to assure yourself of an income stream in retirement, while also keeping a large percentage of your retirement nest egg safe, then the Farm Bureau Life Select IV Portfolio 10 fixed annuity could be a good option for you. One reason for this is because this annuity has certain guarantees, which are built directly into its contract.
But, before you go full steam ahead with purchasing this annuity, it is a good idea for you to first know exactly how the product works, and how it may or may not be aligned with your specific financial goals and needs. Then, after you have a more thorough understanding of this annuity product’s inner workings, you can feel more comfortable with you decision to either move forward or to pass.
Over the past several years, fixed annuities have become quite popular – particularly as a method of obtaining guaranteed income in retirement. Because the lifetime income option on a fixed annuity can ensure that you have ongoing income – no matter how long you live – it can help with eliminating the worry that you may run out of income in the future.
But, while it can certainly be reassuring to have various guarantees – especially as it pertains to your finances – annuities should always be considered as long-term financial commitments, so make certain that you know both the positives and the potential negatives before you move forward.
In doing so, though, it can be somewhat challenging to find out the downside of an annuity. This is because these financial vehicles will typically come with a myriad of “fine print” that can be highly confusing. Adding, even more, confusion to the mix, though, has less to do with the annuity products themselves, and more to do with how these products are presented to consumers. This, however, is where we come in.
Annuity and Retirement Income Planning Information That You Can Trust
If you have never visited our website before, you would like to thank you for stopping by and visiting AnnuityGator.com. We make up a team of experienced financial pros who are focused primarily on offering the most comprehensive and unbiased annuity reviews that can be found here on the Internet. We’ve been doing this for quite some time now – far longer than our competitors – and because of that, we are considered a highly trusted source of annuity information online.
We’ve also seen – particularly over the past few years – numerous “copycat” websites appearing online. In doing some research of our own, we’ve found that most of these sites just simply repeat very basic information that you’ve likely already heard.
There could be any number of reasons why you are looking for more details about annuities right now. You may be approaching retirement, and seeking a safe place to put your money. You may also be researching how you may be able to stretch out your retirement income to last throughout the rest of your life.
In your quest for more information, you may also have recently attended an annuity seminar, where in return for your contact information – as well as a free lunch or dinner – you were given more in-depth details about annuities. It may even have been this seminar that led you here to our site in search of more information about the Farm Bureau Life Select IV Portfolio 10 fixed annuity.
In any case, if you’ve spent any time at all researching annuities on the Internet, though, it is likely that you have run across some very conflicting details. This, however, is not at all surprising. While there are a lot of very reputable websites out there that are devoted to marketing their annuities for sale, some of these sites will also try to lure you in by touting various claims such as the following:
- Highest income payouts
- Lowest fees
- Top-rated annuity carriers
- Guaranteed income for life
- Get your quote now!
Does this look familiar?
Even though these claims may sound very enticing, it is essential that you find out if they are really true. This is because once you are locked into an annuity if you later find that it really isn’t all that it was cracked up to be, it can be costly for you to get out of it.
The good news is that if you’re looking for the down and dirty details about the Life Select IV Portfolio 10 annuity from Farm Bureau, you are definitely in the right place. This will include the good, the bad, and even the downright ugly – as knowing the whole picture is truly the only way that you can make a well-informed decision about this product.
What you may have already found is that insurance and financial sales reps who offer fixed annuities will often do their very best to paint you a very rosy picture of just how safe these products can be. However, what they may conveniently neglect to tell you is that there can also be some drawbacks to them, too. This means that you may need to do a bit of homework before you move forward with an annuity purchase.
Not to be misunderstood – most insurance and financial advisors will typically work hard to do what is best for their clients. So, the products that they are offering aren’t necessarily bad. However, you still want to know both the benefits and the downfalls so that you can make the most well-informed decision possible.
This annuity review is here to take you by the hand and assist you in “decoding” the small print that is so often found in the sales literature about annuities. Here, you can uncover the information that is oftentimes overlooked due to big pretty pictures of retirees receiving their annuity or investment income.
Before we really dive in, though, we do want to make it perfectly clear that we believe that annuities can be good financial options – provided, however, that they fit in with your specific goals.
This annuity review is provided here to assist you in determining whether or not the Farm Bureau’s Life Select IV Portfolio 10 annuity is right for you, or if there could be a better alternative out there for you.
So, if you’re ready to get started, let’s go!
Farm Bureau Life Select IV Portfolio 10 Fixed Annuity at a Glance
| Product Name | Royal Choice 5 Fixed Annuity |
|---|---|
| Issuer | Royal Neighbors of America |
| Type of Product | Fixed Annuity |
| A.M. Best Rating | A- (Excellent) |
| Phone Number | (800) 627-4762 |
| Website | www.royalneighbors.org |
Opening Thoughts on the Farm Bureau Life Select IV Portfolio 10 Fixed Annuity
Farm Bureau Financial Services was initially founded in 1939 when the state Farm Bureau founded Iowa Farm Mutual Insurance Company with the purpose of meeting the unique liability insurance needs of farmers.
Over the years, the company grew – and expanded its product line – to include life insurance and retirement annuities. Today, the company has roughly 4,000 agents who actively market the company’s insurance and annuities (both fixed and fixed indexed).
Based on the financials of all three subsidiaries of the Farm Bureau Financial Companies – which include Farm Bureau Life Insurance Company, Farm Bureau Property and Casualty Company, and Western Agricultural Insurance Company – A.M. Best has provided a rating of A (Excellent).
Due to the vast amount of volatility that has taken place in the market over the past decade or so, the demand for fixed annuities have grown significantly – mainly as a way for retirees, and those who are saving for retirement, to keep their money safe.
On the other hand, though, because of the historically low interest rate environment that we’ve (unfortunately) grown accustomed to lately, the price of this safety of principal is that your overall return can be very low – so low, in fact, that it may not even meet or beat short- or long-term inflation. This, in turn, can have a major effect on the amount of income you’ll receive in retirement.
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. Farm Bureau Life Insurance Company 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, in order to obtain our free annuity report.
How Farm Bureau Describes the Life Select IV Annuity
Farm Bureau describes their fixed annuities as “outpacing the average bank CD by more than a full percentage point.” In particular, the Select IV Portfolio 10 is described as a fixed annuity that pays a guaranteed interest rate for four years, and that can also provide ongoing retirement income in the future.
As with other types of annuities, this financial vehicle will offer tax-deferred growth of the funds that are inside of the annuity, which means that there will be no tax due until the time of withdrawal. There are also some added perks
How a Financial Advisor Might Pitch this Annuity
There are some attractive features of the Select 4 Portfolio 10 fixed annuity from Farm Bureau. For example, with this annuity, there is no need to worry about the constant ups and downs of the market. It won’t affect how this annuity performs, so you are likely to sleep a bit more soundly at night. Plus, once it’s time to turn your annuity into an income stream, you’ll be able to count on a set amount of income coming in regularly for a set period of time – or even for the rest of your life if you’ve chosen the lifetime income option.
But, if you’ve been presented this annuity by a commissioned insurance or financial sales rep, then it is likely that they are going to highlight only the positives – such as safety of principal and lifetime income – but gloss over any of the points that could be potential drawbacks.
The reality is, though, that the interest rates that are credited to this annuity following the initial rate guarantee period are not guaranteed. So, after the initial period of four years, your rate could go up, or it could go down. No one really knows until that time.
In addition, this annuity offers similar, if not the same, features of hundreds of other fixed annuities that are being offered in the market place right now. So, is it really the very best option for you?
What About the Fees on the Farm Bureau Life Select IV Portfolio 10 Fixed Annuity?
Annuities should always be thought of as long-term financial endeavors. One reason for this is because if you want to get out of the annuity – or even withdraw more than 10% of the contract’s value – within the first several years, you will typically be hit with a surrender penalty.
In the case of the Farm Bureau Life Select IV Portfolio 10 fixed annuity, the surrender charge lasts for ten years, although the amount of the charge can vary, depending on your age at the time the annuity was issued. For example, for those who are under age 60 when purchasing the annuity, the surrender charge will go from 10% down to 0 over a ten year time period. For those who are age 60 or over when purchasing this annuity, the surrender charge will range from 9% down to 0%, also over a period of ten years.
The Annuity Gator’s End Take on the Life Select IV Portfolio 10 Annuity from Farm Bureau
Where it works best:
This particular annuity will usually work the best for those who are looking for:
- Safety of principal
- Guaranteed lifetime income in retirement
- Guaranteed rate protection – at least for a short time after purchasing the annuity
Where it works the worst:
The Farm Bureau Life Select 4 fixed annuity may not be an ideal fit if you:
- Want access to most or all of your funds within the first several years (due to the surrender penalty)
- Are seeking a high rate of return on your money
- Do not intend to use the lifetime income feature
In order to truly know how to compare the best annuity options for you, so that you can download our free annuity report.
In Summary
If you’ve been considering the purchase of an annuity – or any financial vehicle, for that matter – it is always important that you consider several factors prior to moving ahead. That way, you will have a much better idea as to whether or not the product is right for you and your specific needs.
If you are considering going with a fixed annuity, though, you can generally be assured that it can offer your principal protection, along with an ongoing and guaranteed income in retirement. This is the case, regardless of how long you may live.
When looking specifically at the Farm Bureau Life Select IV Portfolio 10 fixed annuity, there can definitely be some good benefits. But, this annuity could also fall short – and quite frankly, there might just be a better alternative out there for you. This is especially the case if you are not just looking for a lifetime income stream, but also the opportunity for a higher rate of return.
So, if you are still grappling with whether or not the Life Select 4 annuity from Farm Bureau is for you – or even if you would just simply like to have more information about annuities overall – then please feel free to reach out to us through our secure contact form right here.
Do You Have Any Additional Questions on the Farm Bureau Life Select IV Portfolio 10 Fixed Annuity? Did You Notice Any Mistakes in this Review?
We realize that this annuity review was a bit on the long side. Therefore, we would like to thank you for sticking with us thus far. In offering our reviews of annuities, though, we would much rather provide “too much” detail, rather than not enough. So, if you felt that this annuity review was helpful, then please feel free to forward it and share it with others who you think may also find it beneficial.
We also realize that the available information about annuity products can change over time. With that in mind, if you happened to run across any details in this annuity review that needs to be corrected or updated, please let us know and we will be happy to get them corrected immediately.
In addition, if this annuity review has caused you to be more confused about the Farm Bureau Life Select IV annuity (or any annuity), and/or if reading the review has prompted any additional questions, please let us know that as well.
Are there any other types of annuities that you would like to see reviewed on our website?
If so, then we will get to it. We are always looking for suggestions on fixed, fixed index, and variable annuity products to highlights. So, just drop us a line and our team of annuity pros will start working on it.
Best,
The Annuity Gator
