Independent Review of the Forethought SecureFore 3 Fixed Annuity (MYGA)
What’s Covered In This Review
In this review, we’ll cover the following information on the Forethought SecureFore 3 Fixed Annuity:
- Product Type
- 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 looking for a financial vehicle that can provide you with the security of principal, as well as an ongoing stream of income in retirement, then the Forethought SecureFore 3 Fixed Annuity could be a good option for you. This fixed annuity offers safety from market ups and downs, as well as other guarantees that have been built directly into the contract.
However, before you move ahead with the purchase of this or any other annuity, it can be extremely advantageous to have a deeper understanding of how fixed annuities work, and how they may – or may not – work well with your particular financial objectives, both now and in the future.
Throughout the past decade or so, annuities have risen substantially in popularity. One reason for this is because they can offer a guaranteed income stream during retirement – and because of this and other benefits that they provide, the number of financial advisors who offer annuities has also risen a great deal.
Unfortunately, though, some of the advisors who offer annuities may not always be presenting them in the proper manner. Not that they are trying to do their clients wrong, but more so because annuities can be somewhat confusing. So, without the proper training and experience, some advisors may not be presenting annuities the way that they should be presented. They may also not be able to answer all of the more in-depth questions that you may have – but that is necessary in order to make a well-informed annuity purchase decision.
Even for well-educated people, many annuities – and especially those that offer more “bells and whistles” – can be difficult to comprehend, even when reading all the fine print. But, when considering the purchase of any annuity, steps should be taken to ensure that you have a firm grasp on what it is that you are buying – particularly because you could be plunking down a substantial amount of your overall retirement savings. Also, annuities are always considered to be a long-term financial vehicle. Once you have purchased one, it can be difficult – and quite costly – to get out if you happen to change your mind.
Annuity and Retirement Income Planning Information that Can Be Trusted
If you haven’t visited our site before, we would like to personally welcome you here to AnnuityGator.com. We are a team of experienced financial professionals who have dedicated ourselves to offering in-depth and unbiased annuity reviews. We have been doing this for many years on our website, and because of that, we have not only built up a substantial amount of knowledge about annuities, but we have also become a highly trusted source.
If you have been seeking any information about annuities on the Internet, then it is probable that you may have run into some details that are conflicting about these complex products. This is not uncommon, as there can be many differing details out there. You may also have recently attended a seminar discussing annuities, which is what ultimately led you to this site to get more information on an annuity that you’re considering.
Even though there are some very good sites online that are devoted to marketing their annuities, some of these sources will often attract visitors by touting claims about their products such as:
- Highest annuity payouts
- Low fees
- Guaranteed income for life
- Top Rated Annuity Companies
- Get an Annuity Quote Now!
Yet, as great as these claims may sound, it is important to obtain more proof – just like you would if you were buying any other high-ticket item. In doing so, it may require you to delve into a myriad of small print about the annuity – which can, in turn, confuse the issue even further.
If you are here seeking more information about the Forethought SecureFore 3 Fixed Annuity, though, you are definitely in the right place. In fact, this website is really the only place where you will be able to find all of the details – including the good, the bad, and the ugly. Knowing the whole story, however, will allow you to better determine whether or not this annuity is the right one for you.
Typically, insurance agents who are in the business of offering fixed annuities will project a nice, rosy picture of how their products provide safety of principal and a set return. Yet, they can also often times leave out details regarding any of the drawbacks that these vehicles may have. With that in mind, prior to diving in head first and moving a sizeable chunk of your retirement funds into such an annuity, it is best that you know the whole story first.
Just to be clear, a fixed annuity can offer a long list of advantages for you – provided that they fit into your overall financial picture, and help you to attain the goals you are seeking. So, it is critical that you know exactly what you are getting, along with why you are choosing the annuity over other viable alternatives.
This annuity review is here to assist you with better understanding all of the annuity fine print so that you have a deeper understanding of whether or not the Forethought SecureFore 3 Fixed Annuity is right for you.
So, if you are ready to begin, let’s get started!
Forethought SecureFore 5 Fixed Annuity
|Product Name||SecureFore 3 Fixed Annuity|
|Issuer||Forethought Life Insurance Company|
|Type of Product||Fixed Annuity|
|Standard & Poor's Rating||A- (Strong)|
|Phone Number||(855) 244-4440|
Opening Thoughts on the Forethought SecureFore 5 Fixed Annuity
Forethought Life Insurance Company was initially founded in 1985. But, while this may make it a relative newcomer to the insurance industry, as a part of the Global Atlantic Financial Group, it is part of a much larger insurance and financial conglomerate.
The initial mission of Forethought Life Insurance Company was in the area of preneed funeral expense life insurance. Over time, though, the company moved into other, related product lines such as fixed annuities. And, when the company added annuity capabilities from The Hartford several years ago, it was able to dive head first into the annuity arena.
With roughly $45 billion in assets, Global Atlantic is considered to have a strong and stable financial foundation. Just under half of these assets are attributable to Forethought Life Insurance Company. Because of its stable financial footing, along with its positive reputation for paying out policyholder claims, Forethought is highly rated by the insurer rating agencies – which include an A- (Strong) from Standard & Poor’s and an A- (Excellent) from A.M. Best. In addition, Forethought is also an A+ rated company with the Better Business Bureau.
The demand for fixed annuities has picked up steam over the past several years, due in large part to many retirees and investors alike seeking refuge from market volatility. But, because of the low-interest rate environment over the past decade or so, the returns that are garnered from fixed annuities will often times not be enough to keep pace with inflation.
This low rate could, in turn, negatively impact your annuity’s overall growth, as well as the amount of income that is needed to keep up with inflation and the rising cost of goods and services that you’ll need in retirement.
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. Forethought Life Insurance Company has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. The review is solely meant to be an independent evaluation – per the request of our readers – so that they can see our perspective when going more in-depth regarding the positives and the negatives of this specific annuity product. Before you commit to buying any type of investment or insurance product, it is essential that you conduct your own due diligence, and that you also speak with a properly licensed professional in order to ask any additional questions that relate to your situation. This is particularly important, as annuities do not offer a one-size-fits-all solution. In addition, all of the names, materials, and marks that were used in creating this review are the property of their respective owners.
For more details on how you can compare fixed annuities so that you have all of the key details that you need for making an informed buying decision, <Contact Us> so that you can obtain a free copy of our annuity report.
How Forethought Life Insurance Company Describes the SecureFore 3 Fixed Annuity
According to the Global Atlantic website, the SecureFore 3 annuity provides a three-year rate guarantee. This, says the website, can provide you with a greater degree of certainty.
This site, along with SecureFore 3 Fixed Annuity product literature, also offers more details on how the purchasers of this annuity can keep their money safe for when it is needed through other features of this annuity, such as:
- Access to your funds – up to 10 percent of the contract value each year
- A guaranteed minimum crediting rate
There are also additional features that the SecureFore 3 Fixed Annuity offers. These include:
- Return of Deposit / Return of Premium
- Terminal Illness and/or Nursing Home Waiver
As with other types of annuities, the Forethought SecureFore 3 Fixed Annuity provides tax-deferred growth of the funds that are inside of the account. It can also offer a guaranteed lifetime income in retirement.
How Financial Advisors May “Pitch” the Forethought SecureFore 3 Fixed Annuity
The Forethought SecureFore 3 Fixed Annuity is a single premium tax-deferred vehicle that is available for either qualified or non-qualified plans. This annuity can be purchased up to age 85, with a minimum deposit of $10,000 and a maximum deposit of $1 million through age 80, or $500,000 between the ages of 81 and 85. (These dollar amounts may vary, depending on your state of residence and/or other household factors).
If an insurance or other financial advisor has already talked with you about the Forethought SecureFore 3 Fixed Annuity, then it is likely that he or she focused on various features that it provides, including the guaranteed rate, and the lifetime income.
Because insurance and financial companies usually do a fantastic job of making sure that their products sound enticing, you may have even been leaning towards purchasing this annuity based on the factors above. And, while these features can provide you with some nice benefits, it is important that you know “both sides of the story.”
So, for that reason, we’re going to take a deeper dive into the fine print regarding the Forethought SecureFore 3 Fixed Annuity right here. One of the first items to point out is that this annuity offers a fixed interest rate guarantee period only for three years. And, according to the company’s brochure, “Once the guaranteed interest rate period has elapsed, interest rates will be declared annually in advance on the contract anniversary and be guaranteed for one year.”
So, while a guaranteed lifetime income, along with safety of principal, may be important to you, the truth is that these options are easy to find on any fixed annuity in the marketplace – and, if you are able to find these features on an annuity that also provides you with added benefits, then the alternative may be worth taking a closer look.
The bottom line is that, even though the Forethought SecureFore 3 Fixed Annuity does offer some highly attractive benefits, once you have put your money into this financial vehicle, it may be too late to change your mind if another, more beneficial, option comes along.
With that, if you are still not 100 percent convinced that the Forethought SecureFore 3 Fixed Annuity is right for you, and you would like to obtain answers to additional questions that you may have, then feel free to reach out to us directly via our Secure Contact Form.
We understand how challenging it can be when you’re trying to decide whether or not a particular annuity may be right for you. But, knowing what you need to look for in these products is extremely important, as an annuity could essentially comprise a significant percentage of your retirement funds. If you want additional assurance that you know what it is you are purchasing, then click here to download our free report on what you need to know before buying an annuity.
What About Fees on the Forethought SecureFore 3 Fixed Annuity?
On top of knowing how your funds will perform in a fixed annuity, it is also essential to have a good understanding with regard to the fees that you may be charged. That’s because an annuity’s charges and fees can have a substantial impact on the way that the account performs, as well as with the amount of income that you will be able to obtain in the future.
In many annuities, there will be an up-front commission that is paid to the advisor who sold the product to you. Typically, there will also be an ongoing contract and/or administrative charges. Also, if you wish to withdraw any of your money prior to converting the annuity to an income stream, you could be hit with a surrender penalty if you take out more than your allotted annual amount.
In the case of the Forethought SecureFore 3 Fixed Annuity, there are three years of surrender charges. These are laid out as follows:
Note: If you reside in the state of Ohio, the amount of the surrender charge may differ.
The Annuity Gator’s End Take on the Forethought SecureFore 3 Fixed Annuity
Where it works best:
The Forethought SecureFore 3 Fixed Annuity may work best if you are looking for the following:
- Safety of principal
- Guaranteed lifetime income in retirement
- Guaranteed rate protection for the first few years of owning the annuity
Where it works the worst:
This annuity may not be an ideal fit if you:
- Want access to most or all of your funds within the first three years of the contract
- Are seeking a high rate of return on your money
- Do not intend to use the lifetime income feature
In order to truly know how to compare the best annuity options for you, click here so that you can download our free annuity report.
There are many factors that should ideally be considered when you are determining whether or not an annuity is right for you, and if so, which annuity may be the very best fit. When you are going through the annuity’s features, it is always important to keep in mind that any annuity should be considered as a long-term financial endeavor. Therefore, you should feel comfortable with the decision that you ultimately make – particularly if the annuity can help you to reach your retirement and/or other financial goals.
If you are considering the purchase of a fixed annuity, know that this option can offer you a guaranteed lifetime income in the future, along with the safety of your principal throughout the life of the product.
When taking a closer look at the Forethought SecureFore 3 Fixed Annuity, there are some nice features to take note of. However, even so, it may still fall a bit short – and quite frankly, there may be some better alternatives that are available to you. This is especially true if your goal is to obtain ongoing lifetime income in retirement, along with the opportunity for growth while you wait.
If you still have any questions or concerns with regard to the Forethought SecureFore 3 annuity, and whether or not it may be the right annuity for you – or even if you just happen to have a question about annuities in general – then please feel free to contact us via our Secure Contact Form Here.
Still Have Questions About the Forethought SecureFore 3 Fixed Annuity?
We do understand that this annuity review may be a bit lengthy. However, in our minds, we would prefer to offer a little “too much” detail, as versus not enough. This can allow you to have a better understanding of the whole story, and not just a few chapters. So, if you did find that this review was helpful to you, please feel free to pass it on and share it with others.
On a related note, we also know that the information regarding annuities can – and often does – change on a regular basis. Therefore, if you did happen to notice any details that may need to be updated or revised, then please let us know and we will make the necessary edits.
If this review ended up causing you to be even more confused about annuities and how they work – or, if by reading over this review, you thought of some additional questions or concerns – please reach out to us directly through our Secure Contact Form here, and will be happy to address your questions.
Also, if you would like to see more in-depth reviews on any other annuities, we are happy to provide those as well. There are lots of annuities out there in the marketplace, so knowing where you can go to find the answers that you need can be comforting.
Just let us know the name(s) of the annuity(ies) that you are interested in via our Secure Contact Form, and our team of annuity experts will get on it as quickly as we can.
The Annuity Gator