What We Will Cover in this Annuity ReviewIn this annuity review, we will be going over the following information about the Lincoln Financial MYGuarantee Plus Fixed Deferred Annuity:
- Product type
- 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.
Today, people are living longer than ever before in history. But, while this can have a long list of positives, longer life s expectancy can also mean that you’ll need your money to last for a longer period of time – in some cases, much longer. In fact, it’s not uncommon now for people to live for 20, 30 or even more years after they’ve retired. So where will your income come from? One financial vehicle that many people have turned to is annuities. That’s because these products can provide you with a guaranteed lifetime income, no matter how long you may need it. This, in turn, can make for a much more comfortable retirement, knowing that money is going to come in on a regular basis. But before you go out and make a long-term commitment to purchase an annuity, it is really important that you know just exactly how this annuity may – or may not – work for you and your specific needs and goals. That’s because even though annuities can and do offer some nice benefits, the reality is that these can also be highly confusing financial vehicles. And, if you jump into an annuity too quickly without knowing what to expect, you may be very disappointed. You will also find that once you’re in an annuity, these products can be quite difficult – and expensive – to get out of. With that in mind, you need to learn as much as you possibly can about these products. That’s where the Annuity Gator comes in!
Annuity and Retirement Income Planning Information You Can TrustIf this is the first time you have been to our website, we would like to personally welcome you here to AnnuityGator.com. We are a team of experienced financial professionals who are dedicated to providing non-biased and in-depth reviews of annuity products. We’ve been at this for a number of years now – far longer than most of our “copycat” competitors – and because of this, we have come to be known as a highly trusted source of annuity information. If you’ve been seeking information about annuities online, it is likely that you have come across many conflicting details about these financial vehicles. This isn’t really very surprising, though, because there are a lot of opinions (both positive and otherwise) about these products floating around the Internet. While there are a number of very good websites on the Internet that are focused on offering their annuity products, there are some that will attempt to lure you in with some pretty bold claims like:
- Lowest Fees
- Highest income payouts
- Guaranteed lifetime income
- Top-rated companies
Lincoln Financial MYGuarantee Plus Fixed Deferred Annuity at a Glance
|Product Name||MyGuarantee Plus|
|Issuer||Lincoln Financial Group|
|Type of Product||Fixed Deferred Annuity|
|S&P Rating||AA- (Lincoln National Life Insurance Company)|
|Phone Number||(888) 916-4900|
Opening Thoughts on the Lincoln Financial MyGuarantee Plus Fixed Deferred AnnuityLincoln Financial Group has been in the business of offering insurance and financial tools to its customers since 1905. Over the past 110+ years, the company has grown and expanded, and today it comprises a well-organized family of companies that continue to base their business on dependability, honesty, and customer service. This group of companies consists of the following entities:
- Lincoln National Life Insurance Company (Fort Wayne, Indiana)
- Lincoln Life and Annuity Company of New York
- Lincoln Financial Distributors
- Lincoln Financial Advisors
- Lincoln Financial Securities Corporation
- Lincoln Financial Foundation
Before we get into the gritty details, here are some legal disclosures…This is an independent product review, not a recommendation to buy or sell an annuity. Lincoln Financial has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This review is meant to be an independent review at the request of readers so that they may see our perspective when breaking down the positives and negatives of this particular annuity. Prior to purchasing any type of investment or insurance 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 circumstances. All names, marks, and materials that were used for this review are the property of their respective owners. For more information on how to compare annuities in order to determine which one may be right for you, click here to obtain our free annuity report.
How Lincoln Financial Describes the MYGuarantee Plus Fixed Deferred AnnuityLincoln Financial describes the MyGuarantee Plus Fixed Deferred Annuity as a single premium deferred annuity that lets you:
- Grow your assets at a guaranteed fixed rate
- Choose from multiple interest rate guarantee periods that range from five to ten years
- Accumulate tax-deferred growth over a time period that best fits your retirement needs
- Select options to take income
- Pass contract value to your beneficiaries
How an Insurance or Financial Advisor Might “Pitch” this ProductIf you have been offered the MYGuarantee Plus annuity by an insurance or financial advisor, then it is likely that he or she keyed in on a couple of points of interest regarding this product, such as the fact that your money will be kept safe, and that you can be assured that you’ll continue to receive an income payment regardless of how long you need it for. This lifetime income feature can truly help to alleviate the concern that most retirees have these days about running out of income before “running out of time.” But, just like with most other things in life, there is always another side to the story – and this is true with the Lincoln Financial MYGuarantee Plus Fixed Deferred Annuity product. For example here, while you are able to lock into a set rate of interest for a chosen period of time – up to ten full years – because we have been living in a historically low-interest rate environment for the past decade or so, it is likely that you really won’t even meet – much less beat – inflation. Unfortunately, this is the “price” we often have to pay for safety – at least when it comes to financial products. Also, as is the case with many annuities that allow you to lock in an interest rate long term, there is a surrender period that correlates to the rate guarantee period. This means that if you withdraw any more than 10% of the contract’s value during the surrender period, you will incur a withdrawal penalty.
What About the Fees on this Annuity?Per the above, you could be hit with a surrender fee of up to 7% if you withdraw money during the first several years of owning this annuity. And, the longer you choose for your interest rate guarantee period, the longer your money will basically be “locked up” due to the surrender fees. For instance, if you choose to guarantee your interest rate for five years, then you’ll incur a surrender fee if you withdraw more than 10% of the contract’s value during the first five years. Likewise, if you’ve chosen the ten-year rate guarantee, then you’ll have a ten year surrender period.
Surrender Charge Period
|Guarantee Period / Years||1||2||3||4||5||6||7||8||9||10+|
The Annuity Gator’s End Take on the Lincoln Financial MYGuarantee Plus Deferred Fixed AnnuityWhere it works the best:
- If you want to lock into a set interest rate (for a set period of time)
- If you want to ensure that your principal is safe
- If you plan to use the lifetime income feature
- If you want the opportunity for a higher rate of return
- If you may need to withdraw funds from the annuity during the surrender period
- If you do not plan to use the lifetime income feature
Which category does ‘Lincoln Optponit 10’ belong to??
Hi John – The Lincoln OptiPoint 10 is a fixed indexed annuity, meaning that the return on this annuity is based in large part on the performance of an underlying market index. However, if the performance of the underlying index is negative in a given year, your principal is still protected. In this case, there are three indexed accounts to choose from, as well as a fixed account option. You can find a summary of this annuity’s features by going to: http://www.lfg.com/public/individual/exploreinsuranceannuities/annuities/fixedannuities/lincolnoptipointfixedindexannuity, and more detailed information in the product guide here: http://www.annuityeducator.com/forms/lincoln-financial/OptiPoint-Client-Guide.pdf. Please let us know if we can help further by reaching out to us directly by phone at (888) 440-2468, or emailing us through our secure online contact form at: http://annuitygator.com/contact/. Best! The Annuity Gator