What We Will Cover in this Annuity Review
In this review, we will be discussing the following details on the American Equity Guarantee 6 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.
If you have been thinking about purchasing an annuity so that you can attain tax-deferred savings, as well as a guaranteed lifetime income in retirement, then the American Equity Guarantee 6 MYGA annuity may be a good choice for you.
However, prior to running out and committing to this annuity – or to any annuity, for that matter – it is important that you first get an in-depth understanding of how the product works, and how it may or may not fit in with your specific financial goals and needs.
Over the past decade or so, demand has increased for fixed rate annuities. A large part of this is likely due to the volatility of the stock market, as even a slight “correction” could cause a substantial rift in your retirement savings.
Also, because an annuity can provide you with a lifetime income stream in the future – regardless of how long you may need it – these vehicles can also help you alleviate the fear of running out of income down the road.
Yet, due to the increased popularity of annuities lately, many insurance companies have been coming up with new products, which will oftentimes include a long list of features and benefits – as well as confusion, both for consumers and financial advisors who offer them. So, unless the financial or insurance advisor that you work with has a key focus on offering annuities, you should really read the “fine print” before making a long-term commitment.
Annuity and Retirement Income Planning Information You Can Trust
If this is the first time that you have visited our website, then please allow us to personally welcome you here to AnnuityGator.com. We make up a team of annuity experts who focus solely on offering unbiased, comprehensive annuity reviews.
We have been doing this for many years now – and far longer than our competitors have. Because of this, we have come to be known as a highly trusted source of annuity information online.
Throughout the years, however, there has also been a number of “copycat” websites that have popped up on the Internet. While some of these can give you information about annuities, what you are likely to find is that they are oftentimes just simply reiterating what our information already shows.
When reviewing annuity products online, you may also have encountered many conflicting details about these products. This, however, is not really all that surprising, as there are a lot of differing annuity products, along with just as many – if not more – opinions about them.
It may be that, in your quest for more information about annuities, you have recently attended a seminar where, in return for a free lunch or dinner, the presenter provided you with a lot of details about the American Equity Guarantee 6 MYGA, or some other similar annuity. Your attendance at that seminar may even be the catalyst that has led you here to our site, in search of more information.
When doing your annuity research, you may have run across some of the other websites out there that discuss annuities – but are more interested in simply obtaining your contact information. In order to do this, whey will oftentimes attempt to “lure” you in by making some outrageous claims about the annuities that they offer, such as:
- High Annuity Income Payouts
- Guaranteed Income for Life
- Top-Rated Annuity Carriers
- Low Fees
Yet, as great as these claims may initially seem, this makes it all the more necessary that you ensure that they are true before you plunk down a large chunk of your retirement savings. Otherwise, if could be quite difficult, and expensive, for you to take your money out of the annuity if you later change your mind.
In any case, if you’ve been seeking more details regarding the American Equity Guarantee 6 MYGA annuity, then you are certainly in the right place. In fact, we dare say that this website is the only place online where you can obtain all of the information that you require for making a well-informed purchasing decision about this annuity.
Before we get too far into this review, we do want to be perfectly clear in stating that we believe that annuities can be a very viable financial option for some people – provided that they fit in with your other short- and long-term financial goals.
So, if you’re ready to begin this review, let’s go ahead and dive in!
American Equity Guarantee 6 MYGA Annuity at a Glance
|Product Name||Guarantee 6 MYGA (Multi-Year Guarantee)|
|Type of Product||MYGA / Fixed Annuity|
|Phone Number||(888) 221-1234|
Opening Thoughts on the American Equity Guarantee 6 MYGA Annuity
American Equity Investment Life Insurance Company is a company that is well known for being a specialist in the annuity niche. This company was founded in 1995 – and, even though American Equity is considered by some standards to be “newbie” in the insurance and annuity industry, it has definitely made a name for itself in just a short period of time. This is especially true in the area for fixed and fixed indexed annuity products.
American Equity Investment Life Insurance Company is considered to be strong and stable from a financial perspective, and it has also earned good, positive ratings from the insurer rating agencies. These include an A- from Standard & Poor’s, and an A- from A.M. Best.
Over the past several years, annuities have become a very popular financial product – particularly for retirees and those who are approaching retirement. One of the biggest reasons for this is because an annuity will allow your money to grow tax-deferred, and it can also provide you with a lifetime stream of income that you literally cannot outlive.
Yet, even though this might sound like a win-win situation, the reality is that if something sounds like it may be too good to be true, then it typically is – so you should ideally get as much in-depth detail as possible if you are considering committing to it for the long term.
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. American Equity 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, click here to obtain our free annuity report.
How American Equity Describes the Guarantee 6 MYGA Annuity
American Equity describes the Guarantee 6 MYGA annuity as a product that offers:
- Guaranteed Income
- Liquidity Features
- Avoidance of Probate
In addition, this annuity offers a multi-year guaranteed interest rate. And, within 30 days after the end of the guarantee period, you may choose to do one of the following:
- Apply the contract value to a settlement option
- Take partial withdrawals – without any market value adjustment or surrender charge – and apply the remaining contract value to a new guarantee period
- Surrender the annuity for the full contract value, without a market value adjustment or surrender charge
- Renew the annuity for another guarantee period of the same duration as the previous guarantee period. (It is important to note that this option will be automatically exercised if none of the others are chosen).
The annuity also offers a death benefit, whereby at the first to die (of the annuitant or owner), the company will pay out the full contract value to the named beneficiary (or beneficiaries).
How a Financial or Insurance Advisor Might “Pitch” this Annuity
Today, people are living much longer than ever before – and, while that can be positive in many respects, it can also bring about the worry of outliving your income in retirement. With many people who are preparing for retirement being concerned about growing their savings, while at the same time keeping their principal safe, it is possible that an insurance or financial advisor would present this annuity as a vehicle for accomplishing both of those goals. Plus, there is also the option to choose income for life with this product, either for just one individual or for two individuals.
As a Multi-Year Guarantee Annuity or MYGA, the base interest rate at the beginning of each term is guaranteed to be the base interest rate at the end of the term as well. And, with this particular product, there is a 6-year term.
However, that being said, although most people like hearing the word “guarantee,” it isn’t all that it is initially cracked up to be in some cases. For example, currently, the guaranteed minimum interest rate on this product is a mere 2.45% – which quite honestly is not all that great.
In fact, due to its low rate of interest, there are actually numerous other financial vehicles that you could consider that would still offer you the safety that you’re seeking – and a set rate of growth – but without having your money locked up for a long period of time. You could also quite frankly not have to worry about the myriad of charges and fees.
What About Any Fees on the Guarantee 6 Annuity from American Equity?
While annuities – and particularly fixed annuities – can provide you with a long list of guarantees, you have to look out for any fees that you may be charged with these products, as a plethora of even “small” fees can really add up and negatively affect your ultimate return. This could, in fact, be the case with the Guarantee 6 annuity from American Equity.
Here you will find that there is an initial up-front commission of:
- 3.00% for issue ages 18 to 75
- 2.10% for issue ages 76 to 80
- 1.50% for issue ages 81 to 85
Plus, as with most other annuities, you’ll also incur a surrender charge if you opt to take out more than 10% of the contract value within the first several years. In the case of this particular product, there are 6 years of surrender charges to contend with. These start at 9% in Year 1, and they then grade down gradually by 1% each year, until they finally reach 0% in Year 7. In addition, if you were to make such withdrawals before you have reached the age of 59 1/2, you will also likely incur an additional 10% “early withdrawal” charge from the IRS.
The Annuity Gator’s End Take on the American Equity Guarantee 6 MYGA Annuity
Where it works best:
Although this annuity may not be ideal for everyone, it could be a nice option if you are seeking the following features:
- Guaranteed growth
- Protection of your principal
- Guaranteed income in retirement
Where it works the worst:
The Guarantee 6 MYGA annuity may not, however, work very well in all situations. This is especially the case if you:
- Are seeking the opportunity for a higher rate of return
- Want or need to access more than just 10% of your money within the first six full years of each term
- Do not plan to use the lifetime income feature on the annuity
You need to consider a long list of factors prior to making the purchase of an annuity. Some of these should ideally include the annuity’s ability to grow your money, as well as the way in which it protects your principal.
In addition, because many people purchase annuities in order to attain a long-term (or even a lifetime) income in retirement, this too is a key criterion. Plus, even though many annuities will offer additional features by way of adding a rider, these will oftentimes have an added cost, which in turn, can affect your overall return.
If you are considering the purchase of a multi-year guaranteed annuity product like the American Equity Guarantee 6, then you are be assured that your money will be safe, regardless of what occurs in the stock market. You can also be sure that you will receive income in the future – possibly even for your entire lifetime, as well as the lifetime of another individual that you choose.
However, even given all of the great features and benefits that this annuity can provide you with, there could still quite honestly be a better option out there for you. This is especially true if you are hoping to obtain a higher rate of return on your money, while still keeping your principal safe from market ups and downs.
In any case, the only way to really be sure of whether or not the American Equity Guarantee 6 MYGA annuity may be right for you is to have it tested, based on your specific criteria. We can provide this for you. If you would like to have the numbers run based on your personal financial figures, then just let us know by contacting us via our secure online form.
Do You Have Any More Questions About the American Equity Guarantee 6 MYGA Annuity? Did You Happen to Notice Any Mistakes in this Annuity Review?
We know that this annuity review was a bit on the long side – and for that, we truly thank you for sticking with us through to the end here. Our feeling is, though, that we would much rather give you a tad bit “too much” information that not enough.
Therefore, if you felt that this review was helpful to you, then please feel free to share it and forward it on to anyone else that you think might also benefit from it. Likewise, if this review posed, even more, questions, then please let us know that, too.
Are there any other annuities that you would like to have us review?
There is a long list of annuity products out there in the marketplace today. So, if there is one (or more than one) that you would like to have us review, please let us know the name, or names, of the annuity, and our annuity “geeks” will get to it ASAP.
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The Annuity Gator