What will we be covering in this annuity review?
In this annuity review for the Manhattan Life Future Select MYGA Annuity, we will be going over the following information:
- Type of annuity
- 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.
Committing to an annuity can be a big decision – one that can have an impact on your retirement income, as well as on the growth and protection of your principal. These financial vehicles – provided that they are purchased properly – can help you to ensure that you’ll have a guaranteed income for the remainder of your lifetime, regardless of how long you may need it. Unlike several decades ago, many people are living much longer these days. So, knowing that you have ongoing income in retirement can be a big relief.
However, even though annuities can offer many benefits, there can also be some drawbacks to consider with regard to the products themselves, as well as the way in which they are sold by insurance and financial professionals.
On top of that, annuities are pretty confusing products – particularly annuities that offer a wide variety of return options, as well as other bells and whistles. So, unless you read the “fine print” very carefully, an annuity may not necessarily perform the way that you anticipated it to.
This is where the Annuity Gator can help!
Annuity and Retirement Income Planning Information You Can Trust
If this the first time you have been to our website, please allow us to personally welcome you here. We are a team of experienced annuity experts who focus on providing comprehensive yet unbiased annuity reviews online.
We have been doing this for quite some time – and much longer than our competitors have. Because of this, we have come to be known as a highly trusted source of annuity information online. Over the past several years or so, however, many “copycat” websites have started to pop up on the Internet. So, while that can be somewhat confusing for consumers, we take it as somewhat of a compliment. After all, imitation is the highest form of flattery!
While you’ve been researching annuities online, it’s likely that you have run across some highly conflicting details about these products. This really isn’t surprising, though, as there are many different opinions about them – some good, and some not so good.
This is yet another reason why it is so important to get a good handle on how annuities work, so that you can decide for yourself whether or not an annuity will truly fit in with your financial goals and needs.
If you would like to know more about the Future Select MYGA annuity from Manhattan Life, you are definitely in the right place. In fact, we dare state that the Annuity Gator’s website is the only place online where you’ll see all of the important details that you need for making a well-informed decision.
One reason for this is because we aren’t going to paint a rosy picture for you and focus on only the good stuff. Rather, we provide the whole picture – good, bad, and yes even the ugly. But this can help you in determining whether or not this Manhattan Life MYGA annuity is right for you.
Before we get started, though, and in order to be clear here, we want to state for the record that we believe that annuities can be a great addition to your portfolio. But that is only provided that you’re purchasing the annuity for the right reason(s).
So, if you’re ready to get started, let’s jump in!
Manhattan Life Future Select MYGA Annuity at a Glance
|Product Name||Future Select|
|Type of Product||MYGA (Multi-Year Guarantee Annuity)|
|A.M. Best Rating||B+|
|Phone Number||(800) 247-2045|
Opening Thoughts on the Future Select MYGA Annuity from Manhattan Life
The insurance and annuity products that are sold through Manhattan Life are offered, underwritten, and issued either by Manhattan Life or Western United Life Assurance Company and are administered by the company’s Annuity Operations office in Spokane, Washington.
Founded back in 1850, Manhattan Life Insurance Company is actually one of the oldest continuously operating companies in the world. Today, it is a group of four companies (all of which maintain an A+ rating from the Better Business Bureau, and between these entities, Manhattan Life Insurance Company is licensed in all 50 of the U.S. states, as well as Puerto Rico.
The company offers deferred/Multi-Year Guaranteed Annuities (MYGAs) and single premium immediate annuities, so it is able to provide opportunities to generate worry-free lifetime income, as well as to grow savings on a tax-deferred basis over time.
The need for fixed/MYGA annuities – which are always backed by life insurance carriers – has been growing fairly steadily throughout the past few years, particularly as more of today’s workers are retiring without having the stability of a traditional “defined benefit” pension for future retirement income. But, by choosing the lifetime income stream on an annuity, you can essentially “replace” a defined benefit pension plan.
If you have a “defined contribution” retirement plan, such as a 401(K), then upon retirement, you will need to have an idea of what you want to do with the money you’ve saved in it – as well as a way to convert those dollars over into a stable and reliable income stream (ideally that will last for the remainder of your life – regardless of how long that may be).
One possibility would be a fixed or MYGA (Multi-Year Guaranteed) annuity. This is because these financial vehicles can provide you with a set return and safety of your principal (regardless of what happens in the stock market), as well as with a lifetime income that you can count on.
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. Manhattan Life Insurance Company 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 out perspective when breaking down the positives and the negatives of this particular annuity. Before purchasing any type of insurance and/or investment 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 situation. All of the names, marks, and materials that were used for this annuity review are the property of their respective owners.
For more information on how to compare annuities, and how to determine which one – if any – may be the best for you, click here to obtain our free annuity report.
How Manhattan Life Describes the Future Select MYGA Annuity
According to Manhattan Life, the Future Select MYGA Annuity is an individual, deferred, single premium, multi-year guarantee annuity that offers you the choice of interest rate guarantee periods of either 5 or 7 years. (This annuity is offered exclusively by Western United Life Assurance Company).
This annuity allows for contributions of between $10,000 and $1 million (and possibly more, provided that you obtain approval to do so). This annuity can house and generate income from either qualified or non-qualified funds.
The Future Select Annuity guarantees that the minimum interest rate will never be less than 1%. There are some additional “bells and whistles” that you will find on this annuity, too, including:
- Guaranteed Return of Premium – The Future Select annuity from Manhattan Life guarantees the return of your initial single premium. (In addition, the surrender value of this annuity will never be less than the initial single premium you paid in, minus any partial surrenders you may have taken).
- Death Benefit – Should the annuitant pass away before the payments from the annuity have begun, the surrender charges will be waived, and the funds will be disbursed to a named beneficiary. (Note here that if the annuitant and the owner of this annuity are not the same person, and the owner passes away while the annuitant is still alive, then the surrender charges will not be waived).
In addition, if you opt to convert the annuity into an income stream, there are a number of ways that you can do so. Plus, if the annuitant/owner dies, and the sole beneficiary is the annuitant/owner’s surviving spouse (civil union or domestic partner, if required by law), that person may continue the contract as if they were the original owner.
For more in-depth information on the Manhattan Life Future Select MYGA annuity, you can visit the company’s website HERE.
How an Insurance or Financial Advisor Might “Pitch” the Future Select MYGA Annuity
If you are approaching retirement, it is possible that you are torn between going with financial vehicles that have more risk in order to increase your opportunity for growth, or instead, going with something “safer” so that you don’t lose any of your hard-earned principal in the event of a market “correction”.
With so many pre-retirees being concerned about not losing what they’ve already saved, having certain guarantees can be comforting – so if you have been presented the Future Select MYGA annuity by an insurance or financial advisor, it is likely that they zeroed in on the safety features of this product, along with the ability to earn a higher return if or when rates rise in the near future. So, in many ways, this annuity can allow you to potentially increase the returns on your “safe money.”
But there are some tradeoffs that you need to be mindful of, too. For instance, with the Manhattan Life Future Select MYGA annuity from Manhattan Life, once the initial rate guarantee period that you chose has elapsed, you will have the option of renewing for another guaranteed period (at the then-current interest rate). This, however, may not necessarily be beneficial for you.
That is because, since we have been in a historically low-interest rate period for quite some time now, you could end up locking up a large portion of your money for a long period of time (again) – which in turn means that you could be giving up the ability to take advantage of other financial opportunities that just might provide you with a better rate.
What About Fees on the Future Select MYGA Annuity from Manhattan Life?
As with most other financial products, you could run across some fees if you purchase the Manhattan Life Future Select Multi-Year Guarantee annuity. For instance, this annuity will impose a surrender charge if you withdraw more than 10% of your contract’s value within the surrender charge period.
These periods correspond to the rate guarantee period. So, if you chose the 5-year rate guarantee, your annuity’s surrender period would be five years. Likewise, if you chose the 7-year rate guarantee, then you would have a 7-year surrender period.
Manhattan Life Future Select MYGA Annuity Surrender Charge Schedule
|Guarantee Period||Year 1||Year 2||Year 3||Year 4||Year 5||Year 6||Year 7||Year 8 and after|
In addition to being hit with a surrender penalty, if you make a withdrawal before you reach age 59 ½, you could also incur an additional 10% “early withdrawal” penalty from the IRS. So, given all of these possible penalties, you could end up netting out far less than you had hoped for if you need this money during the annuity’s surrender.
With that in mind, you really need to consider this (or any) annuity as a long-term endeavor and know that the money you put into it could be locked up for quite some time before you can use it.
The Annuity Gator’s End Take on the Manhattan Life Future Select MYGA Annuity
Where this annuity works best:
While the Manhattan Life Future Select Multi-Year Guarantee annuity may not be right for everyone, it could be a good option for those who are seeking the following:
- Guaranteed growth (at least for 5 or 7 years)
- Protection of principal
- Lifetime income in retirement
Where it works the worst:
This annuity may not be right for you if:
- You want the opportunity to earn an even higher rate of return in order to keep better pace with future inflation
- You want to access more than just 10% of the contract’s value each year during the surrender period
- You do not plan to use the lifetime income feature
If you’ve been thinking about how to best position your hard-earned savings for the future, there are a number of criteria that you should be considered. As an example, with annuities, you need to make sure that the product allows you the opportunity to earn a nice return (at least enough to meet or beat inflation), while also keeping your money safe in any type of market environment. Similarly, if you are seeking a future retirement income stream, you also need to know how the annuity will pay out when you need to convert the funds into an ongoing income stream.
With all of that in mind, if you are still considering a purchase of the Future Select MYGA annuity from Manhattan Life, then you can rest assured that your money will be safe, no matter what goes on with the stock market, or even in the economy overall. You can also count on an ongoing income stream in the future, alleviating the concern about running out of money before you essentially “run out of time.”
On the other hand, however, even though this annuity can provide you with a nice array of features, the truth is that it might still very well fall somewhat short, and quite honestly, there could be a better alternative out there for you. This is particularly the case if you have been looking for a way to keep your principal safe, yet still have the opportunity to earn a higher amount of return.
In any case, the only way to really know how this (or any other) annuity may perform – based on your specific situation – is to have it tested. We can do this for you by running the numbers through our annuity calculator, and we can then provide you with a spreadsheet of the results. In order to receive this information, just simply contact us through our secure online form here and let us know.
Do You Have Any Additional Questions About the Future Select Annuity from Manhattan Life? Are There Any Other Annuities You Would Like Us to Review?
While we know that this annuity review was a tad bit on the long side, we still feel that providing “too much” information is much better than not providing you with enough. That being said, we appreciate you sticking with us through to the end.
We also realize that, because all investors’ situations, goals, time frames, risk tolerances, and objectives can be quite different, there may have been some questions that went unanswered in this review.
If this happens to be the case and you still have any additional questions or concerns regarding the Future Select Multi-Year Guarantee Annuity from Manhattan Life, then please feel free to reach out to us here.
In addition, if you found this annuity review to be helpful, please forward it to anyone else that you feel might also benefit from it, as there is a lot of misconception out there about annuities and how they work.
Is there any other annuity you would like to see us review?
If so, we will get our team of annuity “geeks” right on it!
The Annuity Gator