What’s Covered In This Review
In this review we’ll cover the following information on the Farm Bureau Life Select 4 Portfolio 6 fixed annuity:
- Product Type
- Current Rates
- Realistic long term investment expectations
- How it is used
- How it is most poorly used
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The Farm Bureau Life Select 4 Portfolio 6 fixed annuity provides many great benefits that today’s retirees might be looking for, such as principal protection and guarantees. Many of these are actually built right into the annuity product itself. But, before you move forward with the purchase of this, or any, annuity, it is a good idea to have a more in-depth understanding of how the product works, as well as how it may fit into your financial situation.
Today, annuities have become much more popular as a way to provide a guaranteed stream of income in retirement. This is due primarily to the disappearance of the defined benefit pension plan that was in the past offered by many large companies to their employees. Annuities can make it easy for investors to roll funds from a retirement plan or IRA account while continuing to let the money grow, while at the same time setting up funds for a guaranteed retirement income in the future. However, although this can be reassuring, it is also important to know that the purchase of an annuity is a long-term commitment that can include a surrender period of 10 years or more. This means that after you have decided to obtain an annuity, it can be hard to change your mind without paying a large penalty for doing so.
Really knowing what you are getting into with an annuity can be tough, because these particular products do tend to be somewhat confusing. There can be a fair amount of long, drawn out language that is included – even with fixed annuities, which are supposedly the easiest of these types of products for people to understand.
The thing that can add the most confusion about annuities, though, actually has less to do with the products themselves and more to do with the way in which they are sold to consumers. This is where we come in.
Annuity And Retirement Income Planning Information That You Can Trust
If this is your very first time here on our site, we would personally like to welcome you to AnnuityGator.com. We are a team of experienced financial professionals who are dedicated to providing you with nonbiased and comprehensive annuity reviews. These are the most thorough reviews that you will find on the Internet today – and we have been offering these reviews for longer than any of our competitors.
If you have been looking for any information on annuities online – or even if you have heard family and friends discussing these products – then it is likely that you have encountered some conflicting information about them. This is not surprising, as there is a lot of confusing details floating around out there. In addition, some reputable websites that are devoted to marketing their annuities do a very good job of getting your attention for the sole purpose of obtaining your contact information by offering claims such as:
- Guaranteed Income For Life
- Highest Payouts
- Lowest Fees
- Top Rated A+ Companies
- Get Your Quote Now!
While these all sound pretty great, are any of these claims really true? If you want to find out, you have come to the right place – and dare we say, you have likely come to the only place where you can actually find out if that is so.
The insurance salespeople who offer fixed annuities will generally do their best to provide you with a nice, rosy picture of just how safe their products are. However, what they oftentimes won’t tell you is that there are still some drawbacks to owning these types of financial vehicles, too – and this means that you have to be aware of all of the angles before you plunk down your hard-earned retirement funds.
This isn’t saying that what these agents are trying to sell you is bad. But it does mean that, as you inch your way closer to retirement – and as you are considering what you will do with your savings – it is absolutely critical that you know exactly what you are purchasing with that money, as well as why you are buying it. This annuity review is here to help you with “decoding” all of the fine print so that you will ultimately have a more clear understanding of whether or not this particular annuity may be able to help you in achieving your financial goals in retirement.
So, if you are ready to get started, let’s go ahead and dive in!
Farm Bureau Life Select 4 Portfolio 6
|Product Name||Life Select 4 Portfolio 6|
|Type of Product||Fixed Annuity|
|Standard & Poor's Rating||N/A|
|Phone Number||(800) 247-4170|
Opening Thoughts on the Farm Bureau Select 4 Portfolio 6 Fixed Annuity
Farm Bureau Financial Services has been in business since 1939. The company began as Iowa Farm Mutual Insurance Company in order to meet the unique needs of farmers, and from there, it has grown substantially over time. Today, the company has more than 4,000 field reps, with policyholder surplus exceeding $1 billion. The company has consistently been rated as an A or higher by A.M. Best for more than 50 years – and, because an annuity is only as strong as the claims-paying ability of its underlying insurance company, this is definitely a positive thing.
The demand for annuities – which are always backed by insurance carriers – has been steadily increasing ever since market volatility has become the “norm” in today’s global economy. Many retirees today have a distinct fear of running out of income, and because of that, they are seeking a safe place to put their savings, while at the same time hoping to earn at least some amount of return and protection of their principal. These are things that a fixed annuity can offer them.
Unfortunately, due in large part to the historically low-interest rate environment that we have also been living in for the past several years, the return that has been offered by fixed annuities has been relatively low. In fact, in many cases, the return on these vehicles is not even enough to outpace inflation. For many retirees, this is not only disappointing, but also it can be dangerous to their finances – especially if you are planning to live off this income for the next decade or two, or longer.
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. Farm Bureau 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 in order to determine which one may be the best for you and your financial circumstances, contact us to obtain our free annuity report.
How Farm Bureau Life Describes The Select 4 Portfolio 6 Fixed Annuity
On their website, Farm Bureau describes their fixed annuities as “outpacing the average bank CD by more than a full percentage point.”
The Select 4 Portfolio 6 fixed annuity is described as a:
- Fixed rate annuity that pays a guaranteed interest rate for four years
- A product with great rates
- Offering ongoing retirement income
There are some additional perks that you may also find included with this annuity, but these cover the main highlights. For more in-depth information, you can view the Farm Bureau Life Insurance Company annuities by clicking HERE.
How Financial Advisors Might “Pitch” This Annuity
As an educated consumer, it is likely that you have probably noticed that financial and insurance companies do a very good job of ensuring that their products sound enticing. For instance, if you read the above bullet points, then you may have thought that the Farm Bureau Select 4 Portfolio 6 fixed annuity would be a good option for your retirement funds. Further, if you are making the decision of whether or not to purchase this particular annuity under the guidance of an insurance salesperson who stands to earn a nice commission or fee from the sale of it, then you may even hear this annuity explained to you in a much brighter light.
When you are dealing with fixed annuities, some of the primary concepts that you will often hear insurance sales agents talking about when explaining them to clients include:
- Interest rate guarantees
- Access to your funds
- Guaranteed retirement income for life
But, let’s take a closer look at these concepts, because even though they might sound really great up front after you have delved a bit deeper into the “fine print,” you may soon realize that they aren’t as rosy as they seem. For example first, while the Farm Bureau Select 4 annuity states a certain interest rate for the first four years when you take a closer look at the company’s website, you may notice that it states, “Current interest rates posted above are neither guaranteed nor estimated for the future.” It also goes on to state that the company reserves the right to change the current rate for future purchases without notice at any time and for any reason.
You may also have access to your funds with this product – but not all of them, unless you pay a hefty surrender charge over the first four years of owning the product. Otherwise, you may only obtain up to 10% of your money penalty-free.
And, while guaranteed retirement income for life can be a great feature, this is something that can be found on most any annuity. Therefore, if you are able to find this, along with the opportunity to attain a higher return on your funds AND the protection of principal all rolled into one, that alternative may be worth another look.
So, the bottom line here is this: While there are definitely some features on the Farm Bureau Life Select 4 Portfolio 6 annuity that can be beneficial, once you have locked up your funds, it can be too late to change your mind if a better option were to come along. Therefore, if you are still wondering – even just a little bit – if this annuity is really the right one for you, or if you have any additional questions and you need more help with it, then just simply reach out to us via our secure contact form here.
We understand how confusing it can seem to compare which annuity may be the right one for you. However, knowing what to look for is essential, because the purchase of an annuity is a long-term endeavor. To download our free report on what to look for before buying an annuity, just click here.
What About the Farm Bureau Life Select 4 Portfolio 6 Fees?
It is also a good idea to know about any of the fees that you may be charged when you purchase a fixed annuity product. That is because you may be charged an up-front commission, as well as recurring fees during the time that you own the annuity. For example, with a fixed annuity, the charges will typically include administrative fees, the cost to cover the annuity’s guaranteed income stream, and the commission that is paid out to the sales agent. You may also be charged an annual contract fee. Also, fixed annuities will also usually have surrender charges that last for a certain number of years if you wish to cancel the contract and withdraw your funds.
In the case of the Farm Bureau Life Select 4 Portfolio 6 fixed annuity, there are four years of surrender charges. These begin with 8% in Year 1. The charge drops to 6% in Year 2, 4% in Year 3, and 2% in Year 1. In Year 5 the surrender charge drops to 0%.
The Annuity Gator’s End Take on the Farm Bureau Life Select 4 Portfolio 6 Fixed Annuity
Where it works best:
This particular annuity will usually work the best for those who are looking for:
- Safety of principal
- Guaranteed rate protection
- Guaranteed lifetime income in retirement
Where it works the worst:
- For those who need access to their funds right away
- For those who are looking for a high rate of return on their money
- For those who have a high tolerance for risk
- For those who do not intend to use the lifetime income feature
In order to really know how to compare the best annuity for you and your specific needs, click here in order to download our free annuity report.
Overall, it is important to keep in mind that any annuity should be considered as a long-term endeavor – and because of that, these financial vehicles should typically appeal to those who need retirement income in the future, as well as those who may be working to build up as much as they possibly can in the account so that they can generate a nice amount of income when the time comes to convert the annuity’s account over into an income stream. In the case of the Farm Bureau Select 4 Portfolio 6, while this annuity does offer some nice features, it actually still falls a bit short – and there quite frankly may be some better alternatives that are available if you are seeking the opportunity for growth, as well as guaranteed lifetime income in retirement.
If you are wondering, then, if this particular annuity may be the right one for you, or if you still have some questions and you need some help with getting yourself pointed in the right direction, then please feel free to reach out to us via our secure contact form here.
Have Any Questions on the Farm Bureau Life Select 4 Portfolio 6 Fixed Annuity? See Any Mistakes?
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On a final note, as humans will sometimes do, we can make mistakes. So, if you did happen to notice any errors while you were reading through this review, then please do let us know. We are always happy to make any necessary corrections and to give credit where credit is due. If you are an investor and this review causes you any confusion and/or if it creates any additional questions, please reach out to us, too. While we are not always able to get back to you right away, we can typically clear up any questions within just a day or so.
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