What We Will Be Covering in this Annuity Review
In today’s review, I’ll be covering the following information on the American National Palladium 6 MYGA (Multi-Year Guaranteed) 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’ve been in the process of researching annuities so that you can grow your savings and have a steady, guaranteed income in retirement, then having a product like the American National Palladium MYG 6 annuity could be a good option for you. That’s because this particular annuity can offer you a simple, yet a guaranteed way of building your retirement assets without risk to your principal.
But, before you go out and commit to purchasing this annuity – or for that matter, any annuity, it is important that you have a good understanding of just exactly how it works, and how it may – or may not – work with your specific short- and long-term financial goals.
Over the past few years, due in large part to the continuous ups and downs of the market, annuities have become much more popular – especially as investors strive to find ways of ensuring an income in retirement that will last as long as they need it to.
However, due to the increased demand for these financial products, insurance companies have been coming up with “new and improved” annuities, many of which include a lot of bells and whistles.
This, however, is not necessarily a good thing. One reason for this is because it makes an already confusing product even more confusing – which can be somewhat of a detriment when you’re considering plunking down a sizeable chunk of your retirement savings into it.
So, unless the insurance or financial advisor that you work with has a focus on offering annuities, then you should really do some additional research on annuities so that you know exactly what it is that you’re getting into.
Annuity and Retirement Income Planning Information You Can Trust
If this is the first time you have visited our website, please allow us to personally welcome you to AnnuityGator.com. Here, we make up a team of annuity professionals who focus on offering highly comprehensive, yet unbiased, annuity reviews.
We have been doing this for quite some time now – and far longer than our competitors have – and because of that, we have come to be known as a highly trusted source of annuity information online.
Throughout the past decades or so, though, a number of “copycat” websites have sprung up on the Internet. But even though some of these sites can give you information about annuities and their benefits, what you are more likely to find is that these websites are often just reiterating the information that our website has.
If you have spent any amount of time looking for annuity information online, then it is likely that you may also have run across some conflicting details about these financial vehicles. This isn’t really all that surprising, though, as there are a lot of annuities out there today, and everybody seems to have a differing opinion about them.
You may also have recently attended a seminar about annuities, where the presenter – in return for a free dinner or lunch – had you sit through their talk about the in’s and out’s of the American National Palladium MYG 6, or some other similar annuity product.
It could even have been your attendance at that seminar that has ultimately brought you here to our website, searching for additional information. You may also, in your quest for more details, have come across some of the other sites that discuss annuities online. While these may initially seem informative, many of these websites are actually just trying to lure people in – in order to collect your contact information – by making some pretty bold claims, such as:
- High Annuity Income Payouts
- Guaranteed Income for Life
- Top-Rated Annuity Carriers
- Low Fees
Does this look familiar?
The things is, though, that as nice as these claims may sound, it is absolutely essential that you first verify their validity before you move forward with a long-term financial commitment, just like you would likely do before purchasing any other type of “high ticket” item.
If you’ve been seeking more information on the American National Palladium MYG 6 annuity, then you are definitely in the right place. In fact, we dare say that this website is the only place online where you will be able to get all of the key information that you require for making a well-informed decision as to whether or not this is the right financial vehicle for you.
This includes the good, the bad and yes, even the ugly details. That is because we feel that the only way to make a good decision is to have all of the information – and not just the good and “rosy.”
Just to be completely clear here, we want to state that we feel that annuities can – and often do – provide people with some really great benefits. This, however, is really only the case provided that the product fits in well with your other financial needs and goals.
That being said, this review of the American National Palladium MYG 6 annuity is here for providing you with what you need to know. So, if you are ready to begin, let’s dive on in!
American National Palladium MYG 6 Annuity at a Glance
|Product Name||Palladium 6|
|Type of Product||MYG (Multi-Year Guarantee) / Fixed Annuity|
|S&P Rating||A (Excellent)|
|Phone Number||(800) 252-9546|
Opening Thoughts on the American National Palladium MYG 6 Annuity
American National Insurance Company – also known simply as ANICO – has been in the business of offering their customers security through coverage products for more than 110 years. This company was initially founded in 1905, and since then, it has evolved into a well-respected member of the life insurance and annuity industry.
The company offers a long list of product offerings, including annuities, life insurance, accident and health coverage, P&C coverage, and pension plans products and services. These are all distributed both career/captive and independent insurance and financial representatives.
Given its strong financial backing, American National has received high marks from the insurer rating agencies, including an A from Standard and Poor’s, and an A from A.M. Best Company. American National is headquartered in Galveston, Texas.
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 National 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 National Describes the Palladium MYG 6 Annuity
American National describes the Palladium MYG 6 annuity as a single premium fixed deferred annuity for those who desire an attractive fixed interest rate, and the ability to grow earnings on a tax-deferred basis.
With the Palladium MYG annuity from American National, you are able to choose from one of several guarantee periods – in this case, six years – and lock in a competitive accumulation interest rate for that time period.
When this six-year guarantee period has ended, Palladium MYG gives you the option of either:
- Withdrawing all of the money without penalty, within a special 30-day window of time, or
- Continuing the annuity and earning an annual effective interest rate, which is declared annually on the anniversary date of the annuity.
If you opt to continue the annuity, then the contract will have a minimum guaranteed interest rate, which can assure annual growth in the annuity, even after the initial guarantee period is over.
This annuity also has some other features, like a death benefit, that can be paid out to a named beneficiary (or multiple beneficiaries) if the annuitant should die. This benefit will be free of any surrender charges, as well as from any additional expenses that could deplete the amount. (This death benefit is, however, considered to be taxable as ordinary income to the recipient – unlike the death benefit on a life insurance policy).
There is also a nursing home confinement waiver and a disability waiver on this annuity, meaning that if you meet certain criteria, you could be able to withdraw funds from the annuity penalty free.
How an Insurance or Financial Advisor Might “Pitch” This Annuity from American National
Given that many investors today are shying away from the volatile stock market, it is likely that if you’ve been presented this particular annuity by a financial or insurance advisor, he or she keyed in on the guaranteed features.
Many investors today – especially those who are approaching retirement – want to be sure that their money is safe. And, while your funds in the American National Palladium MYG 6 annuity may be protected from the ups and downs of the stock market, they can still be hindered in other ways.
For instance, because of the exceptionally low-interest rate environment that we have been in for roughly a decade now, it is likely that the rate of guaranteed interest you receive may not be enough to beat – or even to meet – future inflation. This being the case, you could end up losing purchasing power in the future, when you need to rely on your investment income the most.
Also, the renewal rates for any subsequent guarantee periods will be based on current interest rates and financial circumstances that are in effect at the time of your renewal – so they could differ from your original rate. Given that, if rates fall further, you may end up with an extremely low rate of return on your money here.
It is important to be careful, especially if you are being presented this – or any – annuity by an advisor who will earn a commission on the sale. That’s because they may lean much more towards presenting you with all of the rosy, positive features, yet leave out the features that may be considered as drawbacks.
With that in mind, if you are not 100% sure that the American National Palladium MYG 6 annuity is right for you, or if you still want to get answers to more of your questions, then please feel free to reach out to us directly here via our secure online contact form.
We agree that annuities can be somewhat confusing – even for well-educated consumers. This doesn’t mean that they are bad products. But it does mean that you want to ensure that much more than the one you choose will be right for you.
So, if you would like to have any additional information, along with the assurance that you know what it really is that you are purchasing, click here now to download our free report on what you need to know prior to purchasing an annuity.
What About the Fees for this Product?
Although fixed annuities can sometimes seem to offer a “best of both worlds” scenario – given their guaranteed growth and their protection of principal – along with the added bonus of a guaranteed lifetime income in retirement, these products also have a few drawbacks, starting with the plethora of fees that you may be charged. In this regard, the American National Palladium MYG 6 annuity is no exception.
Here, you will incur an up-front sales commission of 2.50%.
In addition, even though in the first policy year, all of the interest that is earned may be withdrawn, you will also be hit with a surrender charge if you withdraw more than 10% of the contract’s value. These surrender charges last for 10 full years (other than in the state of California, where they last for nine full years).
American National Palladium MYG 6 Annuity Surrender Charges
(All available states except for California)
American National Palladium MYG 6 Annuity Surrender Charges for California
The Annuity Gator’s End Take on the American National Palladium MYG 6 Annuity
Where it works best:
This particular annuity will usually work the best for those who are looking for:
- Principal protection
- A guaranteed rate of interest (at least for a set period of time)
- Guaranteed lifetime income in the future
Where it works worst:
Alternatively, the American National Palladium MYG 6 annuity may not fare so well for those who:
- Want the opportunity for a higher rate of return on their money
- Want to access more than just 10% of the contract value within the first 10 full years (in most states)
- Do not plan on using the lifetime income feature
There are a number of key factors that should be taken into consideration if you are thinking about purchasing an annuity. These should include – but they are not limited to – how the annuity can produce a return, how safe your money will be, how the income will pay out, and whether or not there are any other optional features that may be added to the annuity (as well as any added costs).
If you’ve been thinking about purchasing a multi-year guarantee annuity product such as the American National Palladium MYG 6, then you can be reassured that your money will be safe, regardless of what occurs in the market. Plus, you can also count on having a guaranteed income stream in the future – and, if you choose the lifetime income option, you (and possibly another individual) can have income for life, no matter how long you may end up needing it.
But, even with all of these great and wonderful features that are included on the American National Palladium MYG 6 annuity, there quite frankly may still be a better alternative out there for you. This is especially true if you are hoping for the opportunity to earn a better return.
That being said, the only way to truly be able to tell if this annuity may perform well for you, based on your particular situation, is to have it tested. We can provide that service for you by running the numbers through our annuity calculator. Upon completion, we can provide you with a spreadsheet that shows you the results. If you are interested in having this test performed for you, then just contact us here via our secure online contact form.
Do You Have Any More Questions Regarding the American National Palladium MYG 6 Annuity? Did You Notice Any Mistakes in this Review?
We know that this annuity review went a bit on the long side, so for that, we truly appreciate you sticking with us here to the end. With that in mind, though, we feel that it is always best to provide “too much” information on financial products than not providing enough.
So, if you found this annuity review to be beneficial, please feel free to share it and to forward it on to anybody else that you feel may also benefit from it. Likewise, if this review has led you to have even more questions, then please let us know that, too.
Are there any other annuities that you would like to see reviewed?
There are lots and lots of annuities available in the marketplace today. So, if you would like to see a particular annuity reviewed, then just let us know the name of the annuity (or annuities), and our team of annuity “geeks” will get on the case. So, be sure to check back soon for the new reviews.
The Annuity Gator