What’s Covered In This Review
In this review, we’ll cover the following information on the Royal Neighbors of America Royal Choice 6 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’ve been in the process of considering the purchase of an annuity because you are seeking guaranteed lifetime income in retirement, along with the safety of principal, then the Royal Neighbors of America Choice 6 Fixed Annuity may be a good option for you. This is because the Choice 6 offers the ability for steady growth – and protection of principal – as well as an ongoing income stream in the future.
But, prior to running out and plunking down a large chunk of your retirement savings into this financial vehicle, you should first have a more in-depth understanding of how this product works – and how it may or may not ultimately work for you.
Over the past several years, annuities have become much more popular with those who are planning for retirement. This is primarily due to annuities’ guaranteed income feature. Due in large part to this increased popularity of – and in turn, demand for – annuities, there are more insurance and financial professionals who are offering them. This, however, may not necessarily be a good thing.
Even though most financial and insurance professionals work hard to do the right thing for their clients, they may not always be able to offer you all of the key details about annuities that you need in order to make a well-informed purchasing decision.
But, having a good grasp on both the good and the bad aspects of annuities is necessary for determining whether or not an annuity is really right for you – and if so, which type of annuity may serve you best.
Annuity and Retirement Income Planning Information You Can Trust
If this is the first time you have visited our AnnuityGator.com website, then we would like to welcome you to our site. We represent a team of knowledgeable annuity pros who are focused on providing our visitors thorough – yet non-biased – annuity review. We have been at this for a number of years now, much longer than our competitors. So, we have become a highly trusted source of annuity information.
If you have been in the process of seeking annuity info online, then it’s likely that you have at some point run across conflicting information regarding these financial vehicles. This, however, is not entirely surprising, because there are many, many annuities out there in the market place, and there are numerous opinions – both good and bad – about them.
There are also a fair number of “copycat” websites out there on the Internet today that really only repeat the information that you can find here first.
It may also be that you have recently attended an annuity seminar, where the presenter offered you a free lunch or dinner in return for presenting you with details about annuities. In fact, because of going to that event, you may now be looking for more information. And in doing so, you’ve landed right here on our website.
Even though there are numerous good sources of information online about annuities, the reality is that some of these websites have a way of “luring” in visitors in order to gain access to their contact information. Some of these sites may promise some or all of the following claims:
- Low fees
- High-income payouts
- Best annuity companies
- Guaranteed income for life
While these claims may at first sound ideal, prior to moving forward and buying an annuity, it is essential that you first determine whether or not these claims are all true. When in the process of finding this information out, you could find yourself amidst a pool of annuity “small print,” which in turn could make getting the details you need much more difficult.
If, however, you truly want to learn more about the Royal Neighbors of America Royal Choice 6 Fixed Annuity, you are definitely in the right place. In fact, we dare say that the website you are on right now is the only place on the Internet where you can find all of the key details that you require about this annuity – including the good, the bad, and even the ugly. But this can provide you will all of the information that can lead you to a more informed buying decision.
Oftentimes, when an insurance or financial rep is presenting annuities to their clients, they tend to highlight the good and positive features, while glossing over the potential drawbacks. We want to make sure that you get the whole picture.
Just to be perfectly clear, we feel that there are numerous benefits that can be gained from annuities. But this is really only the case if the annuity you purchase is in line with your ultimate financial goals – both short and long-term.
This annuity review is here in order to help you with obtaining a more in-depth understanding of how the Royal Choice 6 annuity works. So, if you’re ready to dive in, let’s go!
Royal Neighbors of America Royal Choice 6 Fixed Annuity
| Product Name | Personal Retirement Variable Annuity |
|---|---|
| Issuer | Fidelity Investment Life Insurance Company |
| Type of Product | Variable Annuity |
| Standard & Poor's Rating | |
| Phone Number | (800) 343-3548 |
| Website | https://www.fidelity.com/annuities/overview |
Opening Thoughts on the Royal Neighbors of America Royal Choice 6 Fixed Annuity
Royal Neighbors of America has a 120+ year history in the insurance industry – so the company has definitely withstood both good and bad financial markets, and is still going strong. This can be a positive thing – especially when you are considering the purchase of a long-term financial commitment like an annuity.
The company offers several different annuities in its product line, which includes both single premium and flexible premium annuities, as well as immediate and deferred alternatives. Given that, you could choose to purchase an annuity for the tax-deferred growth of funds, or, if you need income right away, then you also have the option for an immediate incoming cash flow.
Royal Neighbors has a good sized asset base, with more than $979 million in assets under management, and a surplus of roughly $190 million – which can be a good sign for those who plan to receive financial benefits through this company. Based on its financial strength, Royal Neighbors of America is rated as an A- from A.M. Best.
With the highly volatile stock market over the past decade or so, fixed annuities have become quite popular – especially with those who are keeping an eye on their principal and don’t want to lose it in a market “correction.” So, if you have money that you’re counting on to still be there when you need it, then a product like a fixed annuity can be highly appealing.
But, even though you can ensure that your principal is safe – and that you can receive a lifetime incoming cash flow – before you move forward with purchasing the Royal Neighbors of America Royal Choice 6 fixed annuity, there are some details that you should know. This is especially the case because once you get into an annuity, it can be fairly costly if you decide to get out of it anytime soon.
Before getting into the nitty 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. Royal Neighbors of America 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 Royal Neighbors of America Describes the Royal Choice 6 Annuity
The Choice 6 annuity is described by Royal Neighbors of America as being a “multi-year guaranteed annuity.” In this vein, you would be able to earn interest on a tax-deferred basis until the annuity matures. With the Choice 6 annuity option, your guaranteed rate would last for the first six years that you own the contract.
Yet, while this can be nice to know, once the guaranteed period has elapsed, the rate could go up…or it could go down. So, what you really have is just simply a set period of time where you’re earning the guaranteed interest. And, this guaranteed rate is determined by the single premium amount that you deposit when you initially purchase the annuity.
As with other annuities, the tax-deferred nature means that you won’t have to pay taxes on the gain in the contract until the time of withdrawal. The Choice 6 annuity also has a death benefit that can be paid out to a named beneficiary is the annuitant/owner passes away before receiving all of their funds from the contract.
How a Financial Advisor May Pitch this Annuity
Because so many people today are concerned about keeping their money safe, it is likely that a financial or insurance advisor would pitch the Choice 6 fixed annuity based on its safety features, along with its guaranteed growth.
But, even though these may sound appealing, there is always going to be some kind of “trade off” for the upside on a financial product. In this case, it is that the return can be painfully low – so low, in fact, that it may not even come close to meeting – much less beating – inflation.
Added to that is the fact that the guaranteed rate on this annuity will only last for six years, after which you take the chance that it could go down. So much for guaranteed interest rates! Given that, it is highly likely that there are some better alternatives out there for you – especially if you are seeking the safety of your principal, as well as the opportunity to earn a higher rate of return.
So, unless you are 100 percent convinced that the Royal Neighbors Choice 6 annuity is for you, it could be quite beneficial to take a look around at some alternative options. It can also be helpful if you first run the numbers based on your particular situation via our Royal Neighbors of America Royal Choice 6 annuity calculator. That way, instead of getting a “hypothetical” scenario based on how this annuity may perform in general for an anonymous investor, you can plug in some actual numbers that relate to you.
As experts in the annuity arena, we can also offer you help with any additional questions or concerns that you may have – so please feel free to reach out to us at any time via our secure contact form here.
Knowing everything that you need to know about the Royal Neighbors of America Choice 6 fixed annuity – or any other annuity, for that matter – could end up saving you a great deal of money and frustration, as knowing more of the details can help you to avoid products that do not truly fit your needs. Otherwise, getting into the wrong annuity could cost a great deal in surrender charges if you change your mind soon after purchasing one and want to get out of it.
Plus, if you would like some additional tips on what you need to know before you buy an annuity, you can also to immediately access our free report on shopping for annuities.
Are There Any Fees on the Royal Neighbors Choice 6 Fixed Annuity?
When considering any type of insurance or financial product, you would be hard pressed to find one that doesn’t have at least some charges or fees. Fixed annuities are no exception. In the case of fixed annuities, you will typically find an up-front commission that is paid out to the sale rep who sells you the annuity. There are usually also annual administrative charges.
In the case of the Choice 6 annuity, there are six full years of surrender charges, which means that you essentially are locked into this annuity for a multitude of years before you can take more than 10% of your contract value without a surrender fee. (Plus, if you are under the age of 59 1/2 and you make a withdrawal, you could also have to pay an additional 10% early withdrawal penalty to the IRS).
The surrender charge schedule for the Royal Neighbors of America Royal Choice 6 fixed annuity is as follows:
| Product Name | Life Select Gold |
|---|---|
| Issuer | Northwestern Life Insurance Company |
| Type of Product | Fixed Annuity |
| S&P Global Rating (as of June 2017) | AA+ (Extremely Strong) |
| Phone Number | (866) 950-4644 |
| Website | https://www.northwesternmutual.com |
The Annuity Gator’s End Take on the Royal Choice 6 Fixed Annuity from Royal Neighbors
Where it works best:
- Principal protection
- Guaranteed lifetime income stream
- Guaranteed interest rate protection (for a set period of time)
Where it works worst:
- For those seeking a high rate of return
- For those seeking a long term interest rate guarantee
- For those who do not intend to use the guaranteed lifetime income feature
If you truly want to get a more in-depth idea of the best annuity options in the market, then please feel free to download our free report on annuities .
In Summary
If you’ve been thinking seriously about purchasing a fixed annuity, but you’ve been a bit leery about moving forward, then you may need to get a more in-depth understanding of how these products work, how they can work for you, and why they may or may not actually be the ideal financial option for you.
In any case, though, you should always consider an annuity to be a long term financial endeavor – especially because these products will typically have multiple years of surrender charges if you want to take out more than just 10% of your contract value.
The good news is that, if you are considering going with a fixed annuity, you can be assured that you will have principal protection and safety, as well as a set, ongoing income stream for life that you can count on.
With that in mind, when it comes to the Royal Neighbors of America Royal Choice 6 fixed annuity, there are some nice features that are offered. Yet, this particular annuity could also fall somewhat short – especially if you’re hoping for a higher return.
If you have any questions about whether or not this annuity would fit into your financial plan – or, even if you just have a general question about annuities and how they work – please feel free to contact us. Our annuity geek team will be happy to help.
Need Additional Info? Did You See Any Mistakes?
While we know that this review of the Royal Choice 6 annuity was a bit on the lengthy side, our feeling is that we would rather give you too much information about annuity options as versus not enough. So, if you do feel that you gained some good insight about the Royal Choice 6 annuity here, please feel free to forward this review to anyone else who you think may benefit from it.
Also, we know that because information about annuities can, and often does, change, that there may be some details here that require updating. With that in mind, if you did happen to notice anything at all in this review that needs revision, please let us know here via our secure online contact form.
Likewise, if you would like to see any other annuities reviewed, please let us know that, too as we are always looking for suggestions on products to review.
In addition, if you are interested in seeing personalized figures plugged into the Royal Neighbors of America Royal Choice 6 fixed annuity, we would be happy to run a spreadsheet and share the information with you, at no charge.
We look forward to helping you with any questions that you may have.
Best,
The Annuity Gator
