Independent Review of the Athene MYG 5 Fixed Annuity
What We Will Be Covering in this Annuity Review
In this annuity review, we will cover the following details regarding the Athene MYG 5 fixed annuity:
- Type of product
- Any fees to watch for
- Current rates
- Realistic long-term return expectations
- How it is 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 checking out fixed annuities because you want the security of knowing that your principal is safe, and you are comforted by the fact that these products can also offer a lifetime stream of guaranteed income in retirement, then the Athene MYG 5 fixed annuity could be a viable option for you.
That’s because this annuity can guarantee you a set rate of interest for five years, no matter what occurs in the market – and when it comes time to convert the funds in the annuity over into an income stream, you will know that you’ll have money coming in for the remainder of your life.
But, even as great as these benefits may sound, don’t run out quite yet and sign on the dotted line to purchase this annuity – at least not until you know more about how the annuity really works, and what the tradeoffs may be for such guarantees.
Over the past several years – due primarily to the volatility of the stock market – fixed annuities have had a renewed popularity, particularly with those who are retired, or are in the process of preparing for retirement. With their income guarantee in retirement, as well as the fact that they keep your money safe during your working years, MYG annuities (i.e., Multi-Year Guarantee annuities) can sound like the “best of both worlds.”
However, just as with any other type of annuity, MYG annuities can come with some complex “moving parts,” as well as a fair amount of fine print that you really need to know before you commit what could be a large chunk of your savings to this product.
Annuity and Retirement Income Planning Information That You Can Trust
If you’ve never been to our website before, please allow us to personally welcome you to AnnuityGator.com. We make up a team of highly experienced annuity experts who have a focus on providing comprehensive (and unbiased) annuity reviews.
We have been doing this for quite a while now – longer than our competitors have – and because of that, we have become known as a highly trusted source of annuity information. However, over the past decade or so, many “copycat” websites have also sprung up all over the Internet.
If you’ve spent any amount of time online researching annuities, then it is likely that you have come across some highly conflicting opinions about these financial vehicles. This is not entirely surprising, though, as there are many different thoughts about them, about how they work, and even about how they should work.
It could also be that you have recently attended an annuity seminar where, in return for a free dinner, the presenter gave you a myriad of details about the Athene MYG 5 or some other similar annuity product. In fact, your attendance at that seminar could even be the catalyst that has ultimately led you here to our site in search of additional information.
In your quest for more in-depth annuity information, though, 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
Does this look familiar?
Unfortunately, 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 are, in fact, seeking more details on the Athene MYG 5 annuity, then you have landed in the right spot. In fact, we dare say that our website is the only place online where you can truly be able to obtain all of the in-depth information that you’ll need for making a well-informed buying decision (or alternatively, making the decision to forgo this particular annuity and move on to something else).
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!
Athene MYG 5 Fixed Annuity at a Glance
|Product Name||MYG 5|
|Type of Product||MYG (Multi-Year Guarantee) / Fixed Annuity|
|S&P Rating (Athene Operating Subsidiaries)||A- (as of August 2017)|
|S&P Rating (Athene Holding Ltd)||BBB (as of August 2017)|
|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 service 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 MYG 5 Fixed Annuity
The Athene MYG is a multi-year guaranteed annuity with a 5-year fixed rate, and a 5-year surrender period. According to Athene, Multi-Year Guaranteed Annuities “provide you with tax-deferred growth at a fixed rate of interest that is set by Athene for a period of time that is spelled out in the contract. They also offer the opportunity to produce a guaranteed stream of retirement income you cannot outlive.”
With the MYG 5, the money from your initial premium will be credited to the Multi-Year Fixed Strategy (in this case, for five years). The Multi-Year Fixed Strategy interest rate that is credited will depend on the term period that you select. The rate is guaranteed for the term period, and it is guaranteed to never be less than an annuity interest rate of 0.25%.
If you made additional premium deposits into the MYG 5, then these funds will be credited to the 1-Year fixed strategy – which means that this money cannot be included in the multi-year fixed strategy (nor will these dollars receive the guaranteed rate for the five-year period like your initial premium).
As with other annuities, the funds that are in the account are allowed to grow tax-deferred, which means that there is no tax due on this growth until the time of withdrawal. There are also a couple of other features on this annuity, such as a terminal illness waiver and a nursing home confinement waiver, as well as a death benefit which is payable if the annuitant dies before the contract value has been paid out to him or her.
How an Insurance or Financial Advisor Might “Pitch” this Annuity
If you’re like most people, you probably like guarantees – especially when it comes to your money. With that in mind, it is likely that an insurance or financial advisor will key in on the five-year rate guarantee that the Athene MYG 5 annuity offers. During this time period, you’re guaranteed to have your initial premium dollars grow – even if interest rates in the marketplace go down.
Of course, there is also the lifetime income opportunity on this annuity, and because running out of income in retirement is one of the biggest concerns on the minds of most retirees today, this is another biggie that advisors push.
But before you start to jump up and down, feeling that you’ve discovered the best of all worlds financial vehicle, read on…
First, as with most any fixed product over the past ten years, even with a guaranteed rate, the return is so low that you would be hard pressed to meet, or even beat inflation. So is this really a benefit?
Likewise, there are some stipulations that must be met before you would be entitled to the confinement and/or terminal illness waivers. For instance, in each case, you must have owned the MYG 5 annuity for at least one full year before you may request a payment of up to 100% of the contract’s accumulated value.
With regard to the confinement waiver, the annuitant must also have been confined to a qualified care facility for at least 60 consecutive days in order to qualify. With the terminal illness waiver, the annuitant must also have been diagnosed with an illness that is expected to result in death within a year.
In addition, just like with most other annuities, there are some fees that you need to be mindful of – and, because annuities should always be considered longer term financial endeavors, these can be particularly important to know, because if you need to take your money out of this product, it can cost you.
Fees on the MYG 5 Annuity from Athene
While the literature touts that you are allowed to withdraw up to 10% of your contract value penalty free, what it also states if you scan down just a bit further, is that if you withdraw any more than that 10% during the first five years, you will be hit with a withdrawal charge.
For this particular annuity, in fact, the withdrawal charges begin at 8%, and then gradually grade downward for the next four years before they disappear.
Athene MYG 5 Fixed Annuity Withdrawal Charge Schedule
Also, if you take such a withdrawal prior to turning age 59 1/2, you could also incur an additional penalty of 10% from the IRS.
In addition, there is a Market Value Adjustment (or MVA) that is applied to any portion of a withdrawal or surrender that is subject to a withdrawal charge.
The Annuity Gator’s End Take on the Athene MYG 5 Fixed Annuity
Where this annuity works best:
While the Athene MYG 5 fixed 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 five 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
- 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.
If you are still considering the Athene MYG 5 fixed annuity, then know that your money will be safe in this contract – regardless of what occurs in the stock market (as well as what happens with interest rates for the first five years). You can also be sure that you will receive income in retirement for the remainder of your lifetime (as well as that of your spouse or partner, if applicable) if you should choose to go with the lifetime income option.
Yet, even with all of these nice advantages, the reality is that the MYG 5 fixed annuity from Athene could still fall somewhat short – and quite frankly, there could be a better option out there for you, particularly if you are seeking a higher return.
The only way to truly know if the MYG 5 annuity from Athene will work for you, based on your specific financial information is to have it tested. We can perform this test for you, and provide you with the results, free of charge. If this is something that would interest you, then just let us know, and we will be happy to do this for you.
Any Additional Questions? Notice Any Mistakes in this Review?
We realize that this annuity review was a tad long, so we do appreciate you sticking with us thus far. Our thoughts are, though, that we would much rather give out “too much” information about the annuities we review as versus not giving out enough. That way, you will be much better prepared to make a well-informed decision as to whether or not this annuity will be right for you.
With that in mind, if you found this annuity review to be helpful and informative, please feel free to share it and forward it on to others who may also benefit from it. However, if you still have any additional questions or concerns, please let us know that, too.
Also, as information about annuities can – and oftentimes does – change with regularity, if you happened to notice any information in this review that needs to be updated or revised, please give us a shout and we will make the necessary corrections to it.
Are there any other annuities you would like to have us review?
If so, just simply provide us with the name of the annuity (or annuities), and we will have our team of annuity “geeks” get on them – so be sure to check back soon, and often, to read the additional information.
The Annuity Gator