What We Will Cover in this Annuity Review?
In this annuity review, we will be going over the following details regarding the Solutions MYG6 Multi-Year Guarantee (MYGA) annuity:
- Product type
- Current Rates
- Realistic long-term return expectations
- How this annuity is best 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.
The purchase of an annuity can be a big decision. After all, these financial vehicles – if they are purchased properly – can help to ensure that you will have an income for the rest of your life, no matter how long you need it. Today, many people are living much longer than in the past, so knowing that you have ongoing income can be a big relief.
But even though annuities can offer a long list of benefits, there can also be some pitfalls in the products themselves, as well as the way they are sold. Annuities are confusing products, so unless you really read the “fine print”, an annuity may not perform the way that you expected it to.
On top of that, these products can also sometimes be mis-sold by insurance and financial advisors. This doesn’t necessarily happen on purpose, but because advisors who don’t have a focus on annuities may not fully understand them either.
This is where Annuity Gator comes in.
Annuity and Retirement Income Planning Information You Can Trust
If this the first time you have visited 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 Solutions MYG6 multi-year guarantee fixed annuity, 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 MYGA 3-year fixed 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!
The Solutions MYG6 Annuity at a Glance
|Product Name||Solutions MYG6 Annuity|
|Issuer||United States Life/American Pathway/American General Life Insurance Company|
|Type of Product||Multi-Year Guarantee Annuity (MYGA)|
|A.M. Best Rating||BBB|
|Phone Number||(800) 424-4990|
Opening Thoughts on the United States Life Solutions MYG6 Annuity
The United States Life Insurance in the City of New York is a member of the American International Group (AIG).
Founded back in 1919, AIG is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies provide commercial, institutional, and individual customers with an extensive network of life insurance and property-casualty insurance products.
In addition, the AIG companies are also leading providers of retirement services, financial services, and asset management around the globe. In addition to annuities, United States Life Insurance offers term and permanent life insurance coverage.
The need for fixed/MYGA annuities – which are always backed by life insurance carriers – has been steadily growing over the past few years as more and more of today’s workers are retiring without having the stability of a traditional “defined benefit” pension for future income. By choosing the lifetime income stream on such 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 annuity. This is because these financial vehicles can offer you a set return and safety of your principal (regardless of what happens in the market.) along with a lifetime income that you can count on going forward.
The Solutions MYG annuities are offered through American Pathway and are issued through American General Life Insurance Company and the United States Life Insurance Company in the City of New York.
For more information on how to compare annuities in order to determine which one may be the best for you and your financial circumstances, click here to obtain our free annuity report.
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. Neither United States Life Insurance Company nor AIG has 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. 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.
How the Solutions MYG 6 Annuity is Described
The Solutions MYG6 annuity is described as a multi-year guarantee annuity (MYGA) that provides a guaranteed interest rate period of six years. (There are several other rate guarantee periods also available on the Solutions MYG annuities).
This means that regardless of future economic conditions, this annuity is guaranteed to renew at or above the minimum interest rate, which is listed in the annuity contract when you purchase it.
Like other annuities, the funds in this annuity grow on a tax-deferred basis. This means that no taxes are due on the growth until the time of withdrawal. There is also a death benefit offered on this annuity.
If the owner of the Solutions MYG6 annuity dies, and if his or her spouse is the named beneficiary, the surviving spouse may elect to become the new owner of the annuity, or alternatively receive a death benefit distribution. However, if the beneficiary is not the annuity owner’s spouse, he or she may receive either annuity income beginning within one year, or instead, they can receive a total distribution within five years.
There is also a waiver of surrender charges on this annuity if more than 10% of the contract value is accessed during the surrender period if the owner of the annuity is unable to perform two or more of six “activities of daily living” for at least 90 consecutive. These include bathing, continence, dressing, eating, toileting, and transferring.
How an Insurance or Financial Advisor Might “Pitch” the Solutions MYG 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 Solutions MYG6 annuity by an insurance or financial advisor, it is likely that they zeroed in on the safety features of this product, along with the rate guarantee for a set period of time. 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 Solutions MYG annuity from AIG/United States Life, once the initial 6-year rate guarantee period 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.
For more of the “fine print,” you can check out the Solutions MYG product brochure here.
Fees on the Solutions MYG6 Annuity
You could also incur some fees if you purchase the Solutions MYG6 annuity and decide to withdraw more than 10% of the contract’s value within the first 6 years. Because the MYG annuity offers interest rate periods of up to 10 years, the surrender charge schedule is as follows (in all states except New York).
Solutions MYG Annuity Surrender Charge in New York
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 the penalties, you could end up netting out far less than you had hoped for if you need this money.
With that in mind, you really need to consider this (or any) annuity as a long-term financial 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 Solutions MYG6 Annuity
Where this annuity works best:
While the Solutions MYG annuity may not be right for everyone, it could be a good option for those who are seeking the following benefits:
- Guaranteed growth (at least for the first 6 years)
- Protection of principal in any market environment
- 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 what to do with your savings for the future, there are a number of criteria that you should ideally take into account. For instance, with annuities, you’ll 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. Likewise, if you are vying for a future income stream, you also need to know how the annuity will pay out when you need to convert the funds into ongoing income.
So, if you are still considering a purchase of the Solutions MYG6 annuity, you can definitely rest assured that your money will be safe, no matter what goes on with the stock market. You can also count on an ongoing income stream down the road, alleviating the worry about running out of money before “running out of time”.
On the other hand, though, even though this annuity can provide you with a plethora of features, the reality is that this product could still fall a tad bit 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 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? Any Other Annuities You’d Like to Have Reviewed?
While we know that this annuity review was a bit on the long side, we feel that providing “too much” information is far superior to not providing enough. That being said, we appreciate you sticking with us here to the end.
We also realize that, because everyone’s situation is different, there may have been some questions that went unanswered in this review. If this is the case and you still have any additional questions or concerns, please feel free to reach out to us here.
In addition, if you found this annuity review to be helpful, then please forward it on to anyone else that you think may 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 reviewed?
If so, we will get right on it!
There is a long, long list of annuities that are available today. So, if you would like to learn more about a certain product (or products, if more than just one,) please let us know and we will be happy to add that review to our annuity database.
The Annuity Gator
P.S. If you would like to read more of our AIG annuity reviews here are some links to check out.
- AIG – Polaris Choice IV Variable Annuity
- AIG – Polaris Platinum III Variable Annuity
- AIG – Power Index Plus Annuity
- AIG – Power Index Plus Income Annuity
- AIG – American Pathway 7 Fixed Annuity
- AIG – Choice Index 10 Annuity
- AIG – American Pathway 5 Fixed Annuity
- AIG – Assured Edge Income Builder Fixed Annuity
- AIG – American Pathway SolutionsMYG Fixed Annuity
- AIG – American General Power Advantage 10 Fixed Index Annuity
- AIG – American General Power Select Fixed Index Annuity
- AIG – American General Life Insurance Company QLAC
- AIG – American Pathway Annuity
- AIG – Pathway SolutionsMYG Annuity
- AIG – American General Power Select Plus Income Annuity – April 2018 Update
- AIG – American General Life Insurance Company Power 10 Protector Index Annuity
- Independent Review of the American General Power Select Plus Fixed Index Annuity