What’s Covered In This ReviewIn this review, we will be discussing the following details on the Massachusetts Mutual (Mass Mutual) Stable Voyage 7 Year MYGA annuity:
- Product Type
- Current Rates
- Realistic long-term return expectations
- How this annuity is best 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 thinking about purchasing an annuity so that your money can grow tax-deferred, and you want to be able to count on the security of guaranteed income in retirement, then the Mass Mutual Stable Voyage 7 Year MYGA (Multi-Year Guarantee) annuity could be a viable option for you. This product offers a set rate of interest for the first seven full years, and it can also alleviate the worry about outliving your income in retirement – regardless of how long you may live. But, prior to going out and making a commitment to buying this product – or for that matter, any financial vehicle that could require a large chunk of your savings – it is important that you have a good understanding of how this particular annuity works, and how it may – or may not – work for you and your specific financial goals. Throughout the past ten years or so, fixed annuities have become quite popular with individuals and couples who are interested in protecting their hard-earned savings from a market correction. These products can also help with alleviating the worry about running out of income in retirement. But, there is always, as they say, “another side to the story,” and it is essential to know both sides, as there could be some aspects of this annuity that are considered to be drawbacks. And, once you have jumped into an annuity with both feet, it can be difficult, and costly, to try and get back out. This annuity review is here to help you with better understanding the benefits and the considerations regarding the Mass Mutual Stable Voyage 7-Year MYGA annuity so that you can make a much more informed determination regarding whether or not it is the product for you.
Annuity and Retirement Income Planning Information that Can Be TrustedIf have never visited our website before, then please allow us to welcome you here to AnnuityGator.com. We are a team of annuity experts (“geeks”) who are focused on offering in-depth and unbiased annuity reviews. We’ve been at this for quite some time now – longer than our competitors – and because of that, we have come to be known as a trusted source of annuity information. But, just like anything that works well, there have also been a number of “copycat” websites that have popped up over the years. There are some websites out there that will make some pretty serious claims about the annuities they offer, with the primary intent of luring you in so that you part with your contact information. If you run across sites like this, be sure that what they are stating is actually true before you part with your hard-earned life savings. One big reason for this is because annuities can be difficult – and expensive – to get out of if you determine that the product you purchase isn’t really performing the way you expected it to. In order to be perfectly clear here, we want to say that we feel annuities can, in fact, be good products for some people – provided that they are in line with your overall financial goals and needs. That being said, let’s dive into this review!
Massachusetts Mutual Stable Voyage 7-Year MYGA Annuity at a Glance
|Stable Voyage 7 Year
|Type of Product
|MYGA (Multi-Year Guarantee) / Fixed Annuity
|AA+ (Very Strong)
Opening Thoughts on the Stable Voyage 7-Year MYGA Annuity from Mass MutualMassachusetts Mutual Life Insurance Company (also known as Mass Mutual for short) has been in the business of helping customers to build and protect wealth since 1851. The company offers a long list of financial and insurance products, including life insurance and retirement annuities, which are distributed via more than 9,500 advisors. As of year-end 2016, Mass Mutual had approximately $560 billion of life insurance in force. The insurer delivered $5 billion in benefits to its customers just in 2016. The company has earned very high ratings from the insurer rating agencies, including a(n):
- A++ (Superior) from A.M. Best Company (#1 out of a total of 15 rating categories)
- AA+ (Very Strong) from Fitch (#2 out of a total of 21 categories)
- Aa2 (Excellent) from Moody’s Investor Services (#3 out of a total of 21 categories)
- AA+ (Very Strong) from Standard & Poor’s (#2 out of a total of 21 rating categories)
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. Massachusetts Mutual 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, click here in order to obtain our free annuity report.
How Massachusetts Mutual Describes the Stable Voyage 7-Year MYGA AnnuityMass Mutual describes the Stable Voyage annuity as a single premium, deferred fixed annuity that offers the stability of guaranteed interest rates and lifetime income options. The initial interest rate guarantee period (in this case, seven years) will begin when you initially purchase the annuity. At the end of this seven-year time period, you can renew the contract for a period of one, five, seven, or nine years (if available at that time). Alternatively, you could instead 1) renew into a one-year period, 2) take a partial or full withdrawal, or 3) fully or partially annuitize the contract value. And, you could go with any of these three options without incurring a surrender charge. There are a couple of other features on this annuity, such as a:
- Nursing Home and Hospital Waiver
- Terminal Illness Waiver
- Death Benefit
How an Insurance or Financial Advisor Might “Pitch” this AnnuityGiven that many people – and especially those who are inching closer to retirement – want to make sure that their principal is safe, it could be that an insurance or financial advisor who presents this annuity to you will key in on the principal protection that it can offer. They may also focus heavily on the guarantees – including the 7-years of locked-in rate (regardless of what happens with rates in the marketplace). However, this annuity is not all chocolate and roses – and it is important that you know the full picture, rather than only part of it. As an example, one of the little “quirks” with this annuity that your insurance or financial advisor may or may not have mentioned to you is that the interest rate your money receives is based on the amount of money you deposit. For example, (as of November 1, 2017), purchases of less than $100,000 will receive a 7-year set interest rate of 1.90%. However, if you deposit more than $100,000, you will receive a rate of 2.15%. Another item that you will find in the “fine print” is the fact that if you opt to renew your interest rate at the end of a guarantee period for another guarantee period, the surrender charge period also restarts! This means that if you choose to go with another 7-year rate guarantee, your surrender period “clock” will restart, and will last for another seven years.
What About the Fees on the Stable Voyage 7-Year Annuity from Mass Mutual?Speaking of surrender charges – it is important that you know how these work, and when you could incur them, as they could end up costing you quite a bit of money if you want or need to get out of this annuity. In the case of the Stable Voyage 7-Year MYGA Annuity from Mass Mutual, you can withdraw up to 10% of your contract value penalty-free after the first full year. However, if you withdraw more than that within the 7-year surrender period, you will be hit with a fee. These surrender fees start at 7% in the first year, and they gradually grade down until the (finally) disappear in year 7…that is, unless you go with another guarantee period, in which case the surrender charge schedule begins all over again.
The Annuity Gator’s End Take on the Mass Mutual Stable Voyage 7-Year MYGA AnnuityWhere it works best:
- For those who are seeking safety of principal
- For those who want a set rate of growth (at least during the guarantee period of 7 years, and possibly a renewed guarantee period)
- For those who are seeking a set, ongoing income stream in retirement
- Are seeking the opportunity for a higher return
- Want or need to access some or all of their money within the first seven full years (and again during the next surrender period after the renewal date, if applicable)
- Do not plan to use the lifetime income feature of this annuity