What We Will Cover in this Annuity Review
In this annuity review, we will be going over the following details regarding the Voya Life Guarantee Choice Fixed Deferred Annuity:
- Product type
- Current rates
- Realistic long-term expectations
- How the annuity is best used
- How the annuity 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.
For those who have been considering the purchase of an annuity because they are seeking tax-advantaged growth of savings and the opportunity to receive income for life – regardless of how long you need it – the Voya Life Guarantee Choice Fixed Deferred Annuity could be a viable option for you.
However, before going out and making a commitment on this – or any – annuity, it is recommended that you first have a good understanding of just exactly how this product works so that you know what to anticipate.
Annuities are complex products, and the more “bells and whistles” they offer, the more confusing they tend to be. Because of that, many consumers aren’t really sure what they are purchasing – only to find out after they’ve purchased that the product really isn’t all that it was cracked up to be.
Unfortunately, at that point, it is too late to get out of the annuity without having to pay a substantial withdrawal fee. This is definitely not the way to grow and/or protect your hard-earned savings.
Annuity and Retirement Planning Information You Can Trust
If this is your very first visit to our AnnuityGator.com website, then please allow us to officially welcome you here. We are a team of experienced financial professionals who provide highly comprehensive, and non-biased, annuity reviews.
We have been doing this for many years now – much longer than some of the other annuity websites that you may have run across in your search for annuity information. In fact, there are a number of copycat sites out there that will make bold claims about their annuity offerings but are really just looking for your name and contact information.
We have been doing this for quite some time – far longer than most of our competitors – and because of that, we have become known by many consumers and financial advisors as a trusted source of annuity information.
If, during your search for more details about annuities, it is probable that you’ve seen other websites on the Internet that tout some pretty bold claims, such as having the lowest fees, high annuity payouts, and/or representing the best annuity carriers. But, while these claims can sound extremely enticing, it is important to find out if they are true – and in some cases, these sites are only giving you part of the story.
Before you come to a decision about whether or not the Voya Life Guarantee Choice Fixed Deferred Annuity is for you, then, please continue to read on so that you will gain all of the pertinent facts.
If you’re ready to begin, let’s dive in!
Voya Life Guarantee Choice Fixed Deferred Annuity at a Glance
|Product Name||Guarantee Choice|
|Type of Product||Fixed Deferred Annuity|
|Phone Number||(855) ONE-VOYA|
Opening Thoughts on the Voya Life Guarantee Choice Fixed Deferred Annuity
Voya Financial debuted in April of 2014 – so in and of itself, it is a very new insurance and financial services entity. However, this company actually has many years of history behind it. With the establishment of the Security Life of Denver Insurance Company back in 1928, Voya has grown through decades of mergers and acquisitions – and today is considered to be a prominent and financially stable company, as well as a leading provider of retirement products and services across the U.S.
Offering fixed, fixed indexed, and immediate annuities that are aimed at helping individuals to save and protect their retirement funds, Voya Financial serves more than 417,000 retail annuity customers.
Voya Financial has earned a long list of awards and accolades throughout just the past few years, including:
- Being ranked as #266 on the Fortune 500 list (in 2017)
- Being named as one of the World’s Most Ethical Companies by Ethisphere Institute
- Certified in 2017 as a Great Place to Work
- Recognized as one of the Top Green Companies in the U.S. in 2016 by Newsweek Magazine
- A top five retirement plan provider, based on the number of plans and participants (via the Pensions & Investments Defined Contribution Record Keepers Survey in April 2016)
As of September 30, 2017, Voya Financial has a market cap of $7.2 billion, with more than $540 billion in total assets under management. For the total year 2016, the company brought in $11 billion in revenue.
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. 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.
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 Voya Financial Describes the Guarantee Choice Fixed Deferred Annuity
According to Voya’s website, the Guarantee Choice Fixed Deferred Annuity offers competitive interest rates for up to ten years. And (as with other annuities) the growth on the funds that are inside of the annuity is tax-deferred, meaning that there are no income or capital gains taxes to worry about during the annuity’s accumulation period.
This is a single premium annuity, which means that you make one lump sum deposit – and because the annuity is deferred, the funds can grow and compound over time before you convert the annuity over into an income stream.
Honestly, there aren’t really any other “bells and whistles” to speak of with this particular annuity. But, if you want any more in-depth details on the Voya Guarantee Choice Fixed Deferred Annuity, you can take a look at the company’s information HERE.
How an Insurance or Financial Advisor Might “Pitch” this Annuity
Knowing that your money is safe can be comforting – particularly if you are retired or you are quickly approaching that time in your life. That’s because losing even a small chunk of your savings can make a big difference in your future retirement lifestyle.
With that in mind, it is likely that an insurance or financial advisor who is offering the Voya Guarantee Choice Fixed Deferred Annuity would key in on its safety features, as well as the fact that you can lock in a guaranteed rate of interest on the growth for up to ten full years.
In addition, because so many retirees today are worried about outliving their income in retirement, many insurance, and financial representatives may also pitch the annuity by highlighting its lifetime income feature.
Even though it can be comforting to know that your money is safe and sound, this can actually be a false sense of security in certain cases – and this annuity could very well be one such case. Given the extremely low-interest rates that are being offered on fixed products – including fixed annuities – you may have no loss of principal, but you may also not be able to keep up with rising inflation over time.
This, in turn, means that you may not have enough income in the future to purchase the goods and services that you will need in retirement. (This can be particularly true if the income from this annuity will make up the bulk of your retirement income).
What About the Fees Associated with the Guarantee Choice Annuity from Voya?
There are some fees that you may need to be mindful of if you choose to go with the Guarantee Choice Fixed Deferred Annuity from Voya. These can come in the form of surrender charges if you withdraw more than 10% of your contract value during the first ten years of purchasing this annuity. While these charges may vary from state to state, for most people, the surrender charge will start at 9% in Year 1, and will gradually grade down from there until Year 10.
Voya Guarantee Choice Annuity Surrender Charge Schedule
If you do take such a withdrawal, and you are also under the age of 59 1/2, then you will also be hit with an additional 10% “early withdrawal” penalty from the IRS. In this case, the amount of money that you actually net from a withdrawal will be quite a bit less, as a large chunk will end up either staying with the insurance company or going to Uncle Sam.
The Annuity Gator’s End Take on the Voya Financial Guarantee Choice Fixed Deferred Annuity
Where it works best:
As a fixed deferred annuity, the Voya Guarantee Choice annuity will typically be a viable option for those who have the need for:
- Principal protection
- A set rate of interest for up to ten years
- Guaranteed lifetime income in the future
Where it works the worst:
Conversely, this annuity may not work out so well if you are looking for:
- A high rate of return
- A liquid financial vehicle where you can withdraw as much money as you want at any time
In addition, if you do not plan to use the guaranteed lifetime income feature, then this annuity may not be your optimal choice.
In any case, given the information about the Voya Guarantee Choice annuity, it can still be somewhat difficult to make an across-the-board determination in terms of whether or not certain individuals will or won’t benefit from this annuity. The only way to really know if this annuity will work for you is to have it tested.
We can provide that test for you by using our annuity calculator and plugging in figures that are more specific to your particular situation. So, if you’d like more detail as it pertains to you and this annuity, please contact us here via our secure contact form.
You can also get more details on how you can compare the best annuity options for you. Just simply click here so that you can immediately download our free report on how to compare annuities.
Over the past decade or so, annuities have become much more popular – primarily as a way for retirees to ensure that they will have at least some amount of income for the remainder of their lives. With a fixed annuity, it can be comforting to know that you will have a set rate of return and safety of principal – regardless of what occurs in the stock market.
But even with these guaranteed, along with a lifetime income stream, it is still important that you factor in all of the information. Because annuities are long-term commitments, you need to be sure that the one you go with is right for you.
With the Voya Life Guarantee Choice fixed deferred annuity, while you can take advantage of some attractive features, this annuity may still fall somewhat short. And quite honestly, there very well could be some better alternatives out there for you (especially if you are looking for the opportunity for a higher rate of return on your money).
So, if you still have any additional questions or concerns about this – or any other – annuity, then please feel free to reach out to us through our secure online contact form here.
Has This Annuity Review Sparked Any Additional Questions or Concerns? Did You Notice Any Mistakes in the Review?
Annuities can be somewhat complex products – even the fixed annuities that may not have quite as many “moving parts” as variable or fixed index annuities. But in any case, these financial vehicles can still be somewhat confusing – even for well-informed consumers. In that case, if this review has sparked any additional questions or concerns that you may have, please let us know and we’ll be happy to address them.
Likewise, if you noticed that any of the information in this annuity review needs to be revised or updated, please give us a shout and let us know that too. We’ll be happy to get right on this and make any necessary corrections to the review.
Are there any other annuities that you would like us to review?
No problem! Just let us know, and our team of annuity geeks will get to work on those and have them on our website as soon as possible.
The Annuity Gator