What We Will Cover in this Annuity Review
In this review, we will be going over all of the details about the VOYA Fixed Plus Account III, including:
- How it works
- What you can expect from the product
- How an insurance or financial advisor may present it to you
- What fees may be incurred
- Who may be a good candidate for it
- Who may not be a good candidate for it
Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in.
We make the complex, simple.
Over the past several years, annuities have become a much more popular component of retirement planning. One reason for this is because, as people are living longer, having a retirement income that lasts much longer is necessary – and unlike any other insurance or financial product in the marketplace, an annuity is the only vehicle that can guarantee you an income for the remainder of your lifetime, regardless of how long that is.
Having money in a fixed type of account can be especially comforting if you are nearing retirement, as you don’t want to lose a chunk of your savings in a market “correction.” Doing so could impact your retirement income and in turn your retirement lifestyle, quite a bit.
With that in mind, you might be considering the VOYA Fixed Plus Account III through your employer’s benefit plan or other annuity option. This financial vehicle guarantees principal, as well as a guaranteed minimum interest rate throughout the life of the contract.
But, before you get too comfortable, it is important that you know just exactly how the product works, and how it may – or may not – work for you and your specific financial related objectives.
Annuity and Retirement Income Planning Information You Can Trust
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Just exactly who is Annuity Gator?
We are a team of annuity pros who focus on offering very comprehensive – and unbiased – annuity reviews. We have been at this for quite a few years now – longer than our competitors. And, because of the in-depth reviews that we provide, we have become a highly trusted source of annuity information online.
Over the past decade or so, however, there have been a number of “copycat” websites that have popped up on the Internet. While some of these can give you information about annuities, what you are likely to find is that they are oftentimes just simply reiterating what our information already shows.
If you’ve been in the process of researching annuity information online, then you have likely come across a great deal of conflicting information about these products, as well as how they work.
This isn’t entirely surprising, though, as there are lots and lots of annuities out there – available individually or as a part of your employer’s benefits package – and just about everyone has a different opinion about them.
But regardless of whether you’ve heard good, bad, or otherwise regarding annuities, one thing is for sure – and that is it is extremely important that you determine whether or not an annuity is right for you, and if so, which annuity may best fit in with your specific short- and long-term financial plans.
That being said, if you’re here because you want to find out more about the VOYA Fixed Plus Account III, then you are definitely in the right place. In fact, we dare say that the AnnuityGator website is the only place online where you will get all of the information you need. This doesn’t just include the positive information that you’ll find in a glossy brochure, but also the bad and possibly even the ugly.
We do want to be clear in that, we believe that annuities are fine products – and they can be very beneficial to some people – as long as they fit in with your overall financial objectives. This annuity review is here to provide you with what you need to know.
So, with that being said, let’s go ahead and get started!
The VOYA Fixed Plus Account III at a Glance
|Fixed Plus Account lll
|Type of Product
|Fixed Investment Option
Opening Thoughts on the VOYA Fixed Account III
The name VOYA Financial is somewhat new – especially as compared to many of the other large insurance and financial services companies. However, the company itself has actually been around for a while, starting in the mid-1970s when it began as ING.
Over the years, this company has grown, and in 2017, it brought in roughly $8.6 billion in revenues, and as of mid-2018, VOYA boasted a market cap of nearly $8 billion. Currently, the company has approximately $528 billion in assets under management – and, with more than 47,000 institutional clients, and nearly 4.5 million individual retirement plan investors, VOYA seems to definitely be doing something right.
But, no matter how strong and stable an insurance or investment company is if you’re invested in equities, there is still some degree of uncertainty. That’s why many investors – and especially those who are approaching retirement – lean towards putting at least a portion of their money into fixed accounts like the VOYA Fixed Plus Account III.
Before we get into the gritty details, there are some required legal disclosures here…
This is an independent annuity product review. It is not a recommendation to purchase or to sell an annuity. VOYA Financial 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.
How VOYA Describes the Fixed Plus Account III
According to VOYA’s Fact Sheet on the Fixed Plus Account III
, the stability of the principal is the primary objective of this financial option. The Fixed Plus Account III offers a guaranteed minimum rate of interest – and it may also even credit interest that is over and above the minimum rate.
In fact, this option offers guaranteed principal and a guaranteed minimum interest rate, or GMIR, for the life of the contract. It also features two declared interest rates – a current rate that is determined at least monthly, and a guaranteed minimum floor rate that is declared for a defined period of time (which is currently one year).
The guaranteed minimum floor rate may change after a defined period of time, however, it will never be lower than the GMIR that applies for the life of the contract. The current rate, the guaranteed minimum floor rate, and the GMIR are expressed as annual effective yields.
Taking the effect of compounding into account, the interest that is credited to your account daily yields the then-current rate.
As of July 31, 2018, the Voya Fixed Plus Account III actually had some nice returns in the range of 2.75% for one year, which can be very attractive given that many other “safe” alternatives are barely scratching the surface in the 1% range. Interest is credited daily, and the investment increases through compound interest.
Typically, all of the amounts that are invested by your plan into the Voya Fixed Plus Account III will receive the same credited rate. (This is often referred to as a “portfolio method of interest rate crediting.”)
This option is available through a group annuity or other type of contract issued by VOYA Retirement Insurance and Annuity Company. If you are being offered this option through your employee benefit plan, the Voya Fixed Plus Account III requires your employer to select from several different product design options for their overall plan.
While you are typically not allowed to withdraw the funds in this account prior to retirement, there are some “qualifying” situations where you or your beneficiary may be able to do so. These include death, separation from service, or financial hardship.
How a Financial Professional May “Pitch” this Account Option
If you are eligible to choose the VOYA Fixed Plus Account III through an employer-sponsored retirement plan, then it is unlikely that an insurance or financial advisor will sit down with you individually and explain your options.
However, it is possible that the literature that goes in conjunction with your plan will describe this particular option as one that offers safety and stability, regardless of what happens in the stock market.
In many employee benefit plans where the VOYA Fixed Plus Account III is offered, this fixed option is described as offering “stability of principal.” So, if you are seeking a way to diversify your portfolio and add in an option that won’t lose value over time, this may offer you a good alternative for doing so.
What About Any Fees on the VOYA Fixed Plus Account III?
Because the VOYA Fixed Plus Account III is typically offered via employer-sponsored retirement accounts, the overall fees that you may be subject to can differ. Inquiring with your HR department can provide you with more detailed information regarding plan fees.
The Annuity Gator’s End Take on the VOYA Fixed Plus Account III
Where this product may work best:
While placing funds into a fixed account may not be right for all investors, the VOYA Fixed Plus Account III could be a good option for those who are seeking:
Where this product may not fare so well:
- Protection of principal
- A way to even out risk and diversify in their overall employer-sponsored retirement plan portfolio
Alternatively, this account option may not be the ideal alternative for those who:
- Are seeking aggressive growth
- Have a higher tolerance for risk
- Have other fixed accounts/investments that may help to stabilize their overall portfolio
There are a number of important considerations that should be taken into account when you are investing for retirement. This is true, regardless of whether you are saving in an individual account or an employer-sponsored retirement plan.
In the case of the VOYA Fixed Plus Account III option, if you choose to place funds into this account, then you are definitely be assured that your principal will be safe, and that you won’t lose value – even in a highly volatile market.
Yet, because investing for the future can be different for all investors, there may actually be some better alternatives out there for you – and the only way to really know how this option could perform for you is to take a look at your overall financial picture.
We can do this for you – and we will do it for no charge and no obligation. If you’re interested in having us take a look and let you know what we find, just simply contact us
and set up a time to chat.
Do You Have Any More Questions About the VOYA Fixed Plus Account III? Are There Any Other Products You Would Like to See Us Review?
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P.S If you would like to read more of our VOYA Financial annuity reviews here is a link to check out: