What We Will Cover in this Annuity Review
In 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 Trust
If 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
However, while such benefits might sound really awesome, it makes it all the more important to know whether or not these claims are actually true. This is where our website can help. In fact, if you have come here in search of more in-depth details on the Lincoln Financial MYGuarantee Plus Fixed Deferred Annuity, then you are definitely in the right spot.
We dare say that right here on our website is the only place online where you will be able to find all of the information – including the good, the bad, and even the somewhat ugly – about this annuity. But knowing the whole picture, as versus just a portion of it, is the best way to determine whether or not this annuity will be right for you.
Just to be clear here, we want to state for the record that there can be a long list of benefits that can be attained when you purchase an annuity – provided that the product fits in with your overall financial needs and goals.
That being said, if you are ready to start the review, let’s go ahead and dive in!
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 Annuity
Lincoln 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
Lincoln has amassed a long list of awards and accolades over the years, such as being named as #207 on the 2017 Fortune list by revenue, listed as #24 by assets and #337 on the 2016 Barron’s 500 list based on the most revenue growth and cash returns.
Based on its financial strength and claims-paying ability, Lincoln Financial Group has also earned high ratings from the insurer rating agencies. These include an A+ from A.M. Best, an A+ from Fitch, an A1 from Moody’s, and an AA- from Standard & Poor’s.
Due in large part to the constant ups and downs of the stock market, along with the fact that (on average) people are living longer today than ever before, fixed annuities have become much more popular over the past decade or so. One key reason for this is because these financial vehicles can provide you with the safety of principal and a steady rate of growth (regardless of the market or economy), as well as a future income stream that will last as long as you need it to.
But, while this may at first glance seem like an ideal way to go with your savings, if something sounds too good to be true, it typically is! Therefore, it is essential that you go over the “fine print” before you move forward with the purchase.
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 Annuity
Lincoln 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
This annuity also offers a death benefit. Here, once the contract owner or annuitant passes away, the named beneficiary (or beneficiaries) can receive the contract value. (It is important to note here, though, that the death benefit is only available before the annuity has been converted over into an income stream).
If you really want to delve into the more in-depth details about the MYGuarantee Plus Fixed Deferred Annuity from Lincoln Financial, you can check out the Facts At-A-Glance product guide HERE.
How an Insurance or Financial Advisor Might “Pitch” this Product
If 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+|
(Note: In New York, these percentages are 1% less).
If you opt to renew your interest rate guarantee period again (once the first period has elapsed), then guess what happens – the surrender period will start all over again! That means that you really need to keep in mind that annuities are long-term financial commitments. So, if you think that you may need access to some or all of the funds you have earmarked for this product, you might want to reconsider.
In addition, if you do make such a withdrawal from your annuity before you have reached the age of 59 1/2, then you could also be hit with an additional 10% “early withdrawal” penalty from the IRS.
The Annuity Gator’s End Take on the Lincoln Financial MYGuarantee Plus Deferred Fixed Annuity
Where 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
Where it works the worst:
- 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
There are many important factors that should ideally be considered when you are thinking about purchasing an annuity. In any case, though, these financial vehicles should be approached as a long-term commitment, as they can be quite expensive to get out of.
If you are still leaning towards purchasing the Lincoln Financial MYGuarantee Plus Fixed Deferred Annuity, you can be assured that your principal will be safe and that you can count on a guaranteed income in retirement.
But, even though this annuity can do this for you, the reality is that it may still fall somewhat short – and there could be a better alternative out there for you. In any case, the only way to really know for sure whether this annuity may work well for you is to have it tested. We can provide that for you and can offer you a spreadsheet of the results. If you would like to run your information through our annuity calculator, just let us know here through our secure online contact form.
Have Any Additional Questions? Did You Happen to Notice Any Mistakes in this Annuity Review?
We realize that this review of the Lincoln Financial MYGuarantee Plus Fixed Deferred Annuity went a tad bit long. So, we thank you for sticking with us through to the end here. When creating our annuity reviews, though, we would much rather “err” on the side of being “too long” as versus not long enough. With that in mind, if you found this annuity review to be beneficial, then please feel free to share it with others who may also benefit from it by forwarding it on to them.
Are there any other annuities that you would like to see reviewed on our website?
There are lots and lots of annuities available in the marketplace today. So, if you would like to see a particular annuity reviewed, then just let us know the name of the annuity (or annuities), and our team of annuity “geeks” will get on the case. So, be sure to check back soon for the new reviews.
The Annuity Gator
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