What We Will Cover in this Annuity Review
In this review, we will be discussing the following details regarding the American National Palladium MYG 7 Annuity Product:
- 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.
For those who have been thinking about purchasing a fixed annuity because you want to know that your principal will be safe and that you will also obtain a guaranteed lifetime income in retirement, then the American National Palladium MYG 7 fixed annuity could be a viable alternative for you.
One reason for this is because this particular annuity can provide you with an interest rate guarantee for seven years. In addition, it can also provide you with a lifetime income stream in the future, which can help to alleviate the worry of running out of income in retirement.
Yet, as enticing as these benefits might sound, you really shouldn’t go out and purchase this – or any – annuity unless or until you have an in-depth understanding of just exactly how the product works, and how it may or may not work for you.
Throughout the past decade or so, due in large part to the constant ups and downs of the stock market, fixed annuities have become quite popular. This is especially the case for those who are retired, or who are in the process of preparing for that time in their lives. With their income guarantees, as well as the fact that your principal is kept safe, fixed annuities may seem to be the best of all worlds for investors.
But, just like with any other type of annuity, you need to proceed with caution. For example, the American National Palladium MYG 7 (multi-year guarantee) is a product that has some “moving parts,” and along with this can come a myriad of “fine print” that you really need to check into before you commit a large amount of money to this annuity.
Annuity and Retirement Income Planning Information You Can Trust
If this is your first visit to our website, we would like to officially welcome you to AnnuityGator.com. We are a team of experienced annuity professionals who focus on offering comprehensive – and unbiased – annuity reviews.
We’ve been at this for quite some time now – and much longer than our competitors. Because of this, we have come to be known as a very trusted source of annuity information online. However, over the past several years, a number of other “copycat” sites have also started springing up all over the Internet.
If you’ve spent any amount of time searching for information about annuities online, it is likely that you have also run across some highly conflicting details about these products. This, however, is not all that surprising, as there are many, many annuities out there in the market, and everyone seems to have differing opinions about them.
It is also possible that you recently attended an annuity seminar where the presenter provided you with information about the American National Palladium MYG 7, or some other similar annuity. This seminar may even be what has ultimately led you here to our website in search of additional details.
In your quest for annuity information online, you may also 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
As cool as these claims may be, though, it is all the more important for you to verify whether or not they are actually valid before moving forward with the purchase of an annuity – just as you would likely do prior to buying any other type of high-dollar product or service.
If you are in fact seeking more details about the American National Palladium MYG 7 annuity, then you are definitely in the right spot. In fact, we dare say that this website is the only place online where you will obtain all of the key information that you will require for making a well-informed buying decision (or alternatively, for making the decision to forgo this annuity and move on to something else that better suits your needs).
As you read through this annuity review, you will find that we don’t just lay out the nice, rosy advantages of the product, but we also give you details about what could be considered some serious drawbacks, too. We don’t do this to scare you, but rather to give you the whole picture, as we firmly believe that knowing everything is the only way to make a truly informed financial related decision.
With that in mind, we also want to be clear in that we fully believe that an annuity can be a great financial vehicle for some people – provided that it fits in well with your short- and long-term financial goals.
So, with that being said, if you’re ready to proceed, then let’s go ahead and get started!
The American National Palladium MYG 7 Annuity at a Glance
|Product Name||Palladium 7|
|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 7 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.
Throughout the past several years, fixed annuities have grown in popularity, especially for those who have a goal of keeping their principal safe from market fluctuations, as well as those who want to know that they can count on an income for the remainder of their lives.
But, even though these features and guarantees might initially sound ideal, the truth is that if something sounds too good to be true, it just might be. So, given that, it is important that you gather as many of the details as you possibly can before you move forward with purchasing this, or any other, fixed annuity.
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 7 Annuity
American National describes the Palladium MYG 7 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, seven years – and lock in a competitive accumulation interest rate for that time period. With the 7-year MYG annuity, you may also be eligible for a first-year interest rate enhancement. (This is not the case on some of the other Palladium MYG annuity options from American National). Even with the first year rate enhancement, though, the declared accumulation interest rate still applies throughout the guarantee period.
When this seven-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).
In addition, there is also a nursing home waiver and a disability waiver included on this annuity. Here, provided that you meet certain criteria (such as being confined to a nursing home for a specific period of time, or becoming disabled and not earning an income, you may be able to withdraw funds from the annuity penalty-free.
How an Insurance or Financial Advisor Might “Pitch” This Annuity from American National
With many investors today still shying away from the volatile stock market (particularly those who are approaching retirement), 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.
Given that, you can be assured that your money will be safe from choppy market conditions. However, even with the nice list of guarantees that are offered on the MYG 7 annuity, your money could still be at risk in other ways.
For example, due to the historically 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.
So, unless you are completely convinced that the American National Palladium MYG 7 annuity product is the one for you, please feel free to reach out to us with any additional questions that you may have.
Are There Any Fees on the Palladium MYG 7 Annuity from American National
On top of the low rate of interest that you’re likely to get with the American National Palladium MYG 7 annuity, there are some additional “hits” that your money can take, due to various fees and charges.
For instance, with this annuity, you will incur an up-front sales commission of 2.5%. Also, even though you are allowed to withdraw all of the interest that is earned on this annuity during the first year, you will be hit with a surrender charge for the first 10 years if you withdraw more than 10% of the contract value. These charges begin at 8% of the amount withdrawn, then they gradually grade down over time.
American National Palladium MYG 6 Annuity Surrender Charges
(All available states except for California)
American National Palladium MYG 6 Annuity Surrender Charges for California
To add insult to injury, if you make such withdrawals before you have reached the age of 59 1/2, then you will also likely incur an additional 10% early withdrawal penalty from the IRS.
The Annuity Gator’s End Take on the American National Palladium MYG 7 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 7 fixed 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 ten full years (in most states)
- Do not plan on using the lifetime income feature
There are a number of important concerns to keep in mind when you are saving for retirement. For instance, you want to be sure that your funds are earning a nice return, but that they are also safe from potential market downturns. It is also essential to know that you will have a reliable stream of income in retirement – regardless of how long you may need it.
If you are considering the purchase of the American National Palladium MYG 7 annuity, then you can be assured that your principal will be safe from market fluctuations, and that you will also have a reliable stream of income in retirement.
But, even with these awesome features, the Palladium MYG 7 annuity from American National may still fall somewhat short for you – and quite honestly, there could very well be a better option out there for you. This is particularly true if you are seeking the opportunity for a better 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.
Have Any Additional Questions? Notice Any Mistakes in this Review?
We realize that this annuity review was a tad bit lengthy. However, our feeling is that we would much rather “err” on the side of offering “too much” information than not enough. So, we do appreciate you sticking with us thus far.
If you found that this annuity review was helpful, then please feel free to forward it on to anyone else who you think might also benefit from it. Also, we realize that not everyone’s financial situation is the same. So, if you do still have any more questions about the American National Palladium MYG 7 annuity, then please reach out to us here and we will be happy to further assist you.
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