Independent Review of the Athene MaxRate 7 Multi-Year Guarantee Annuity
What Will Be Covered in this Annuity Review?
In this annuity review, we will be covering the following details regarding the Athene MaxRate 7 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
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If you have been thinking about purchasing a multi-year guarantee annuity because you want to know that your principal will be safe, and you also want to know that you can count on a guaranteed stream of lifetime income in retirement, then the Athene MaxRate 7 Multi-Year Guarantee annuity could be a good fit for you.
One reason for this is because this annuity can guarantee you a set rate of interest for seven years, no matter what occurs in the market. And, when it comes time to convert the money in the annuity to an income stream, you will also know that you can count on a reliable income stream for the remainder of your life.
However, even though these benefits may all sound just great, you might not want to run out quite yet and make a long-term commitment to this – or any – annuity…even if it has some nice guarantees. That’s because annuities will also come rife with fees, penalties, and a whole host of “fine print” that you will want to be aware of first. Then, and only then, should you proceed.
Throughout the past decade or so, due in large part to the constant ups and downs of the stock market, fixed annuities have had a renewal in popularity – particularly with those who are either retired or about to be. Given their income guarantees, as well as the fact that they can keep principal safe during your working years, fixed MYGA annuities can indeed sound like the best of all worlds.
But, just like with any other type of annuity, MYGA fixed annuities have some moving parts – as well as a fair amount of “small print” – that you really need to know about before committing what will likely be a large chunk of money to this product.
Annuity and Retirement Income Planning Information That You Can Actually Trust
If this is your very first visit to our website, then please allow us to officially welcome you here to Annuity Gator. We are a team of experienced annuity professionals who focus on offering comprehensive and unbiased annuity reviews online.
We have been at this for quite some time now – and far longer than our competitors. Because of this, we have come to be known as a highly trusted source of annuity information. Over the past several years or so, though, many “copycat” websites have started to spring up, mimicking what we do. While that can be somewhat confusing for consumers, we take it as “imitation being the highest form of flattery.”
If you’ve been spending any time at all looking for annuity information online, it is highly probable that you’ve also come across some conflicting details regarding MYGAs and other types of annuity products. In doing so, you may also have noticed that there are many different opinions about annuities. One reason for this is because there is a myriad of annuity types – as well as varying features – and therefore, there is a multitude of differing thoughts about them.
You may also have recently attended an annuity seminar where the presenter discussed more of the in-depth details about the Athene MaxRate 7 MYGA annuity – or some other, similar annuity product. Your attendance at this event may even have been the catalyst that has ultimately led you here to our website in search of more information.
In any case, if you are in search of information about this, or other annuities, you are definitely in the right place. In fact, we dare say that this website that you are on right now is the only place online where you will be able to get all of the in-depth details that you will need for making a well-informed buying decision.
When reading through this review, you will find that we don’t just provide you with all of the positive information about the annuity, but we also point out the items that could be considered as drawbacks. That is because we feel that knowing the whole story – and not just bits and pieces of it – is the only way to make the best decision about such products.
With that in mind, we want to be clear in that we believe that annuities are good financial options for some people – provided that they fit in well with your short- and long-term financial goals and needs.
With that being said, if you are ready to proceed with this review, then let’s dive in!
Athene MaxRate 7 Multi-Year Guarantee Annuity at a Glance
|Issuer||Multi-Year Guarantee / Fixed Annuity|
|Type of Product||Multi-Year Guarantee / Fixed Annuity|
|Phone Number||(888) 266-8489|
Opening Thoughts on the Athene MYG 5 Fixed Annuity
Athene USA is a relatively new name for an acquisition of a long-established life insurance carriers that have a century-old track record in the industry. Their life insurance companies are based out of Delaware, Iowa, and New York and Athene USA services customers in all 50 of the United States.
As a product that is offered via Annexus, this company specializes in the retirement market – which is a good thing if you are looking for ways to guarantee a portion of your retirement savings.
However, because an income guarantee on an annuity is really only as good as the insurance company that is backing it, you would do yourself a favor if you do your due diligence and review the financial strength – as well as the claims-paying ability – of the company that holds any such product that you’re considering.
The need for 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.
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 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.
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. Athene 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 Athene Describes the MaxRate 7 Multi-Year Guarantee Annuity
In a nutshell, Athene describes the MaxRate 7 Multi-Year Guarantee Annuity as “A great way to save. Guaranteed.”
So just exactly does that mean?
Well, for one thing, it likely refers to the fact that the interest rate you get initially will be guaranteed for a 7-year period of time. And, if you initially contribute more than $100,000 to this annuity, your guaranteed rate will be 2.90%. (If you initially deposit less than $100,000 the rate is 2.75%).
This annuity also has a couple of other features included, such as a terminal illness waiver, as well as a nursing home confinement waiver. This means that you could withdraw more than just 10% of your money from this annuity penalty-free, even during the surrender period. There is also a death benefit, whereby a named beneficiary can receive the full accumulated value of the contract, or the minimum guaranteed contract value – whichever is greater – if the annuitant dies.
How an Insurance or Financial Advisor Might “Pitch” this Annuity
If you are approaching retirement, then you may be torn between going with financial vehicles that have more risk in order to increase your opportunity for growth, and going with something “safe” so that you don’t lose any of your hard-earned retirement funds.
Because many pre-retirees today are concerned about not losing what they’ve already saved, having certain guarantees can be comforting – so if you have been presented this annuity by an insurance or financial advisor, it is likely that they keyed in on the safety features of this product, along with the ability to earn a higher return if or when rates rise in the near future. 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. For example, even though you can earn more than the guaranteed rate on this annuity, the reality is that you still may not be able to beat, or even meet, the rate of inflation.
Here, for instance, once the initial 7-year interest rate guarantee period has elapsed, your funds will then have a return that is based on the 1-year fixed strategy. This rate is declared on each contract anniversary, and the rate can vary each year. With that in mind, you really never know what the return will be long-term, or whether it will be enough to beat – or even meet – inflation. (But given that most fixed annuities have painfully low returns, the answer to the latter is probably not).
Because of this, you would still need other options for increasing your savings and/or your future income if you want to keep your retirement income rising enough to meet future living expenses.
And then there are the fees…
What are the Fees Associated with This Annuity?
As with most other insurance and financial products, you will also run into some fees if you purchase the Athene MaxRate 7-year MYGA fixed annuity. With this product, there is a surrender period, meaning that if you take out more than 10% of the contract’s value during the first seven full years, you will incur a fee. The amount of the surrender fee depends on the year. For example:
It is important to note that each multi-year strategy term period has its own withdrawal strategy. For example, if you deposit $50,000 initially, and then six months later, during the first year, you deposit another $25,000, then each of these amounts would have their own surrender period that starts the day you make your deposit.
The Annuity Gator’s End Take on the Athene MaxRate Multi-Year Guarantee Annuity
Where this annuity works best:
While the Athene MaxRate Multi-Year Guarantee 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 seven years)
- Protection of principal
- 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
When considering how to position your savings for retirement, there are a number of factors that should ideally be taken into account. For example, when it comes to annuities, you will want to ensure that the annuity provides you with an opportunity to earn a return, while at the same time keeping your funds safe from a market downturn. And, if income is an issue, you should also know how the annuity will pay out when the time comes.
So, if you are thinking about moving forward with the purchase of the Athene MaxRate 7 Multi-Year Guarantee annuity, you can be assured that your money will be safe, regardless of what occurs in the stock market. In addition, you can also count on a set amount of income – even for the remainder of your entire lifetime (provided that you go with the guaranteed lifetime income option on this product).
However, even though the MaxRate 7 provides a multitude of great features, the truth is that this annuity might 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 About the MaxRate 7 Multi-Year Guarantee Annuity from Athene? 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 than not 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.
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