What will be covered in this annuity review?
In this annuity review, we will be going over the following information regarding the Securian MyPath Ascend 2.0 annuity lifetime benefits option:
- Product type
- 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 have been considering the purchase of a variable annuity because you want to grow your savings tax-deferred, while at the same time have the ability to attain market-related returns, then the Securian Life MyPath Ascend 2.0 variable annuity income benefits added to a Securian variable annuity could be a good option for you.
What you may notice is that, just like almost any other annuity, variable annuity products can perform quite well in some areas, but there are other areas where it may not be up to par – especially depending on your specific financial goals and objectives.
Therefore, before you head out and make a purchase with what will likely take a significant amount of your retirement funds, it is essential that you first have a more in-depth understanding of how this product works – and how it may or may not work for you and your specific financial goals.
But first, let’s take a closer look at how variable annuities work, and how they may or may not be the best alternative for you, based on your short- and long-term financial objectives, as well as your risk tolerance.
For many years, annuities have been a popular way for investors to assure themselves of an ongoing income in retirement. There are many different types of annuities – and each is designed to perform in a different way. Likewise, there are some types of annuities, such as variable, that can put your money at risk. So, unless you are fully aware of the potential drawbacks of these products, you could have an unwelcome surprise down the road.
As a result, it is important that you know just exactly what you may be buying, as locking yourself into an annuity – and then trying to get out of it later if you feel that it isn’t for you – can be expensive.
Annuity and Retirement Income Planning Information That You Can Trust
If you have not been to our website before, we would like to officially welcome you to AnnuityGator.com. We are a team of experienced insurance and financial pros who focus on providing unbiased annuity reviews.
If you have been in the process of looking for complete information – and not just the rosy highlights that you’ll typically find in glossy sales brochures – then you have certainly come to the right place. In fact, there could be a number of reasons why you may be here, looking for additional details about the MyPath Ascend 2.0 annuity from Securian Life.
For instance, it is possible that you have recently attended an annuity seminar, where in return for a free lunch or dinner, the presenter discussed this particular annuity, and how it could be the ideal retirement product for you.
But, while the opportunity to take part in market gains – along with a guaranteed lifetime income in retirement – may have sounded appealing, you may not have heard the entire story.
If you’ve been searching for annuity information on other websites, you may have been lured in by some bold claims, such as:
- Highest income payouts
- Lowest fees
- Quick annuity quotes
- Top-rated carriers
While these websites tout on about the glory of annuities, what they often won’t tell you is that there can be some pitfalls to look out for. Just to be clear here, we are fans of annuities – but we also believe that consumers need to hear not just the good, but also the bad and the ugly, in order to make a well-informed decision. This is particularly important as the purchase of an annuity could very well require most or all of your hard-earned retirement savings.
What you will find here at AnnuityGator.com is that we are a highly trusted source of providing unbiased annuity reviews. We have been at this for quite some time now – far longer than most of our competitors. Yet, because we have built a name for ourselves in the annuity market place, there has been a spark of “copycat” websites that try to do what we do.
Based on our experience, we’ve actually discovered that none of the benefits on an annuity really matter until you first understand what your primary reason is for buying it. In addition, even if you are seeking a nice rate of return, most fixed index annuities will not be able to produce 7 to 8% – and definitely not consistently over time.
Want to find out how annuities really work – and how they may, or may not, work for you? Then feel free to instantly download our Annuity Buyer’s Guide click here.
So, if you’re ready to learn more about the MyPath Ascend 2.0 annuity from Securian, let’s dive on in!
The Securian Life MyPath Ascend 2.0 Annuity at a Glance
|Product Name||MyPath Ascend 2.0|
|Type of Product||Variable Annuity Income Rider|
|S&P Rating||AA- (Very Strong)|
|Phone Number||(833) 810-8267|
Opening Thoughts on the Securian Life MyPath Ascend 2.0 Income Rider
Since the year 1880, Securian Financial has been committed to providing insurance, investments, and retirement solutions that provide families with the confidence to focus on what is truly valuable – banking memories with those who matter the most.
The company today has roughly 19 million customers in North America, and it is ranked as the 8th largest life insurance company in the United States (based on total life insurance in force). Based in St. Paul, Minnesota, Securian is presently #462 on the Fortune 500 list of companies. With more than $78.5 billion in assets under management, the company has nearly $1.2 trillion of life insurance in force. In just the year 2017, Securian paid out approximately $5.3 billion in statutory benefits to its customers.
Due in large part to its financial strength and stability, Securian Life has earned high ratings from the insurer rating agencies. These include a(n):
- A+ from A.M. Best
- AA from Fitch Ratings
- Aa3 from Moody’s Investor Service
- AA- from Standard & Poor’s
The company has also earned a Comdex rating of 95, which places it in the top 5% of companies that have this rating. (The Comdex ranking is an average percentile of a company’s ratings, making it easier to compare).
Securian offers a wide range of annuities, which can help customers to customize the one(s) that best meet their needs – starring with whether they need income now, or income later. For instance, variable deferred annuities offer the ability to invest your contributions in variable investment options, making them a good fit for those who want market participation and who have a higher tolerance for risk.
Overall, investors can typically expect a variable annuity to do two primary things. These are to 1) grow principal, and 2) produce income in retirement. But in reality, variable annuities are not really all that good at producing income. One of the biggest reasons for this is because of the risk that these types of annuities present, both to their investors and to the insurance companies that are offering them.
Because the value of a variable annuity can – and oftentimes does – fluctuate so much, insurance carriers can only guarantee a lesser amount of future income, similar to their “safer” options like fixed annuities.
So, when you think about it, for each and every dollar that you put into a variable annuity, it is really only going to guarantee you less income than a fixed annuity would do – even for the exact same amount of money. Given this, if your main goal in purchasing an annuity is to ensure that you have a guaranteed income stream down the road, then a variable annuity might not be your best option.
Regarding their investments, variable annuities can usually offer you with the opportunity to obtain unlimited growth. However, in order to even be eligible for that, you will also have to incur the “tradeoff” of taking more downside market risk.
Before we get into the gritty details, here is some necessary legal information that needs to be disclosed…
This is an independent annuity product review and it does not constitute any type of recommendation to purchase or sell an annuity. Securian Financial has not endorsed this review in any way, and I do not receive any compensation for providing this review. This information is meant to be an independent opinion so that readers may see my personal perspective when determining the potential advantages and/or drawbacks of this particular financial vehicle, and how it may or may not fit into their specific financial portfolio. Prior to purchasing any type of investment or investment product, it is important to pursue your own due diligence and to consult with a competent and properly licensed financial professional before moving forward. This way, you can more precisely ensure that the product and/or service fits in with your individual circumstances. All names, trademarks, and materials that were used in this annuity review are the property of their respective owners.
How Securian Describes the MyPath Ascend 2.0 Variable Annuity Optional Income Benefit
According to Securian, the MyPath optional lifetime income benefits are available for an additional cost with the MultiOption variable annuity. MyPath benefits can offer you guaranteed lifetime income that is guaranteed to last as long as you do!
More specifically, the MyPath Ascend 2.0 offers accelerated growth for those who are gearing up for retirement. This option may be added (for an additional charge) to both single life and joint life contracts.
It offers a benefit base enhancement of 7%, and a 200% benefit base guarantee. The annual charge for this benefit may vary, but presently it is 1.4% of the benefit base or contract value – whichever is greater – on single life contracts, and 1.50% for joint life annuities.
With this option, the benefit base is used in determining your guaranteed annual income – which is the amount of income that may be withdrawn every contract year for life, beginning on the benefit date. And, the benefit base has an annual reset when the contract value is higher than the current benefit base, following any enhancement.
It is important to note here, though, that this benefit can come with some potential tradeoffs. For instance, any excess withdrawal amounts that are made can reduce the benefit base and the enhancement base – if applicable – proportionately, based on the ratio of the total amount withdrawn to the contract value. (In other words, the guaranteed annual income amount is recalculated).
After the benefit date, if the total amount withdrawn in a contract year is in excess of the guaranteed annual income or the annuity holder’s required minimum distribution, then the amount in excess will also reduce the benefit base and the enhancement base proportionately based on the ratio of excess proportion to the contract value.
For all of the in-depth details – including the cost of this rider – you can check out the MyPath optional lifetime income benefits fact sheet HERE.
The Annuity Gator’s End Take on the Securian MyPath Ascend 2.0 Optional Income Benefit
If you are seeking a guaranteed income for life, then the MyPath Ascend optional income benefit rider may be a viable choice for you. That is because you can count on a set amount of income for as long as you need it – no matter how long that may be.
But this rider may not be right for everyone – especially if you don’t plan to use the annuity it’s attached to for lifetime incoming cash flow in the future. Also, given the added cost of this rider, it is important to weigh out the benefit in relation to how much it may reduce your overall return.
When considering any type of financial option, it is essential that you first keep in mind what your overall goals are – both in the short and the long term. For example, even though a particular annuity rider or benefit may offer you the opportunity for lifetime income, if you are not comfortable with market volatility or the added cost, then it may not be the best solution for your needs.
With this in mind, the only way to really know if the MyPath Ascend 2.0 option will work for you is to have it tested. We can provide you with this information via our annuity calculator – and there is no charge or obligation for having this done. Just simply contact us via our secure contact form here and we’ll get on the case.
Do You Still Have Questions About How the Securian MyPath Ascent 2.0 Benefit Works? Did You Notice Any Mistakes in this Review?
We realize that this review was a bit on the long side. However, it is our feeling that offering a little “too much” information is better than not offering enough. That being said, if you still have any additional questions or would like more details on how this annuity benefit may perform when coupled with your overall financial and retirement income goals, then please feel free to reach out to us here through our secure online contact form. In addition, if you felt that this annuity review was helpful, by all means, feel free to forward it on to anyone else who you think may also benefit from it.
In addition, as most humans do, we can make mistakes or overlook some things. So, if you did happen to notice any information in this review that needs to be corrected or updated, please let us know that, too.
Are there any other optional benefits or annuities that you would like to see reviewed?
As we expand our annuity database, we are always looking for annuities and related options to discuss in our reviews on the AnnuityGator.com website. So, if there is something that you would like to see a review written about, please tell us here and our team of annuity geeks will get on the case.
The Annuity Gator
P.S If you would like to read more of our Securian Life annuity reviews here are some links to check out:
- Independent Review of the Securian Life MyPath Ascend 2.0 Lifetime Income Benefit
- Independent Review of the Minnesota Life SecureOption Focus 3 Annuity
- Independent Review of the Minnesota Life SecureOption Focus Fixed Deferred Annuity
- Independent Review of the Minnesota Life SecureOption Select Fixed Deferred Annuity
- Independent Review of the Minnesota Life SecureOption Select 9 Annuity