What Will Be Covered in this Annuity Review?
In this review, we will be discussing the following information regarding the Guardian Fixed Target Deferred 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 considering the purchase of an annuity because you want to ensure that you won’t run out of income in the future – especially if you live a nice, long life – then the Guardian Fixed Target deferred fixed annuity could be a great way to accomplish that.
Prior to going full steam ahead with getting this annuity, it is highly recommended that you first have a much more in-depth idea about how the product works – as well as how it may (or may not) be aligned with your specific financial goals. Then, once you are much more familiar with it, you can feel more comfortable with either moving forward with a purchase, or passing on this annuity and moving on to one that is more beneficial to you.
As our life expectancy has gotten longer, deferred fixed annuities have become more popular. This is because these annuities can allow you to receive an ongoing stream of income far into the future – and that income can last for as long as you need it, regardless of how long that may be.
However, before you go out an purchase the Guardian Fixed Target – or any annuity, for that matter – it is important that you first have a thorough understanding of the benefits that it may provide, as well as any possible drawbacks, as these annuities can be very difficult to get out of once you get in.
Over the past decade or so, fixed annuities have become much more popular with people who are retired, as well as those who are approaching that time in their lives, as they can help to alleviate the concern about running out of money in retirement.
But, because of this increase in demand, many insurance carriers have been introducing new products – and unfortunately, this can make a product that is already somewhat confusing even more so. This is actually true for well-informed consumers, as well as many insurance and financial advisors!
With that in mind, unless the advisor that you work with has a primary focus on selling annuity products, you really should do some additional research on these products, as they will oftentimes require that you deposit a large chunk of your savings into them.
That’s where the Annuity Gator can come in!
Annuity and Retirement Income Planning Information That You Can Trust
If this is your first visit to our website, then please allow us to officially welcome you here to AnnuityGator.com. We are a team of annuity pros who focus on offering very comprehensive – and unbiased – annuity reviews. We have been at this for quite a few years now – longer than our competitors. And, because of the in-depth reviews that we provide, we have become a highly trusted source of annuity information online.
Throughout the years, however, there have been a number of “copycat” websites that have popped up on the Internet. While some of these can give you information about annuities, what you are likely to find is that they are oftentimes just simply reiterating what our information already shows.
If you have been spending any amount of time researching annuity information online, then it is likely that you have run across some very conflicting details about these products. This is not entirely surprising, however, because there are a lot of annuities out there to choose from now, and everyone seems to have a different opinion of them.
In your quest for more information about annuities via the Internet, you may also have seen some annuity marketing websites that focus on luring visitors in for the purpose of obtaining their contact details. These sites will oftentimes do so by making some fairly bold claims about the annuities they offer, such as:
- High Annuity Income Payouts
- Guaranteed Income for Life
- Top-Rated Annuity Carriers
- Low Fees
Does this sound familiar?
But, as enticing as claims such as these may be, it is 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 seeking more information on the Guardian Fixed Target, you are definitely in the right place. In fact, we dare say that this is the only website where you can really get all of the key details that you need, which in turn, will help you with making a well-informed decision about this product.
We do want to warn you, though, that in addition to providing you with all of the nice benefits that the Fixed Target can offer, we are also going to lay out the product’s drawbacks. This is so that you will be in a better position to make a truly informed decision as to whether or not this is really the annuity for you.
So, with that being said, let’s go ahead and dive in!
Guardian Fixed Target Deferred Fixed Annuity at a Glance
|Product Name||Fixed Target|
|Issuer||Guardian Life Insurance Company|
|Type of Product||Fixed Deferred Annuity|
|S&P Rating||AA+ (Very Strong)|
|Phone Number||(888) 482-7342|
Opening Thoughts About the Guardian Fixed Target Deferred Annuity
Guardian has been a key presence in the insurance industry since 1860. Over the years, this company has successfully weathered many market cycles – and still come out strong. The company offers a wide array of insurance and financial products – including income annuities.
This large insurer has earned a number of awards and accolades, including being ranked as number 218 on the 2017 Fortune 500 list and being named in the Harris Poll as the Life Insurance Brand of the Year (for 2016).
Due in large part to its strong financial footing and timely payment of claims, Guardian has received high ratings from all of the insurer rating agencies. These include a(n):
- A++ (Superior) from A.M. Best
- AA+ (Very Strong) from Fitch
- Aa2 (Excellent) from Moody’s Investor Service
- AA+ (Very Strong) from Standard & Poor’s
Because so many people are living longer these days, it is essential to ensure that you have income during your early stages of retirement, as well as many years down the road. In fact, it’s not uncommon for people to live for 20, 30 or more years past their retirement date.
Plus, over time, the prices of the goods and services you need to buy will also likely continue to rise. So, having a larger amount of income in the future will also be a requirement – at least if you want to continue your present lifestyle.
A fixed deferred annuity can certainly help you to solve these concerns. However, it is also important to note that not all of these products are exactly the same. That’s why it can be extremely beneficial to do some research on the annuity itself, as well as the company that’s offering it before you commit what will likely be a significant sum of your retirement savings.
Before we get into the in-depth details, we have some legal disclosures to present…
This is an independent annuity product review. It is not a recommendation to purchase or to sell an annuity. Guardian Life Insurance Company 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 our perspective when breaking down the positives and the negatives of this particular annuity. Prior to committing to the purchase of any type of insurance and/or investment vehicle, it is critical that you do your own due diligence, and that you also talk with a properly licensed professional if you have any questions that relate to your specific situation. All of the names, materials, and marks that have been used in compiling this annuity review are the property of their respective owners.
For more details on how to compare fixed annuities so that you can decide which may be the best one for you, click here in order to obtain our free annuity report.
How Guardian Describes the Fixed Target Deferred Income Annuity
Guardian Life describes the Fixed Target deferred income annuity as a financial vehicle that allows you to use today’s savings to help remove risks such as negative or flat market returns from your retirement plan. It also allows you to count on a guaranteed lifetime income, starting when you will need it the most – retirement. The income can last throughout your lifetime, as well as a loved one’s lifetime if desired.
The Fixed Target annuity offers different interest rates for different guarantees that can be chosen, and that is also based upon the amount of money that you initially deposit. In this case, there are different interest rate bands for depositing more or less than $100,000 and maturities of between three and ten years.
At the end of the guaranteed interest period, if you are not ready to renew for another extended period of time, then the Guardian Fixed Target Annuity offers a one-year guaranteed interest period. This option will allow you to keep your annuity’s accumulation value growing – free of surrender charges, and tax-deferred through a fixed rate of return that is guaranteed for one year. Then, when you are ready, you may transfer 100% of your balance into any available guaranteed interest period.
This annuity also comes with a death benefit, whereby the accumulation value (at the time Guardian Life receives proof of death) can be paid out. For contracts that are jointly owned by spouses, or for a single owner contract with a sole spouse beneficiary – in the event of the death of an owner spouse, the surviving spouse can elect to continue the contract in the current guaranteed interest period without surrender charges (subject to certain guidelines).
How an Advisor Might Pitch this Annuity
Because knowing that income will be available long into the future, it is likely that an insurance or financial advisor who is offering this product to their clients will key in on that feature. In fact, research from various retirement industry groups has shown that Americans are highly concerned about having enough money saved to support a comfortable retirement lifestyle.
The single premium fixed deferred annuity offers people the ability to select from multiple guaranteed interest periods, and it also provides flexible renewal and withdrawal options to help with generating income in retirement.
Unlike many regular fixed annuities, the Guardian Fixed Target Annuity does not have any market value adjustments on withdrawals that are made prior to maturity – so in this case, you will know exactly what to expect out of your retirement income stream. In addition, you will also be able to know the end value of your investments, based on the interest rate that is applied and the time until maturity.
When ready, you can either partially withdraw, fully surrender, transfer 100% of the annuity’s value into any available guaranteed interest period, or select one of the annuity payment options that are available in order to create a stream of income through the annuity payments.
But, while this might sound nice, it is also important that you have a good understanding of the “tradeoffs” that might be required in order to have access to such benefits. For example, the money that you use to purchase a fixed deferred will be locked up until the deferral period is over. And, if you don’t start taking income for 30 or so years in the future, that can be a really long time to be without access to the funds. With that in mind, a fixed deferred annuity like the Guardian Fixed Target annuity is highly illiquid.
On top of that, there is the chance that you may not live long enough to collect the income stream – or long enough to recover the full value of the amount that you deposited into the contract. As an example, if a 50-year-old male with a life expectancy of 29 years purchases this annuity – and has income set to pay out in 30 years – then there is a chance that he will never see the payout on this contract.
What About Fees on the Guardian Fixed Target Deferred Fixed Annuity?
You also need to be mindful of any fees that could be charged with regard to this annuity. Here, there are surrender charges which are based on the maturity schedule you choose. These are outlined as follows:
Guardian Fixed Target Deferred Fixed Annuity Surrender Charge Schedule
|7,8,9 and 10 Year Maturity||7%||7%||7%||6%||5%||4%||3%|
The Annuity Gator’s End Take on the Guardian Life Fixed Target Annuity
Where it works best:
This annuity could be a good option for those who:
- Anticipate a long life
- Will need retirement income in the extended future
- Are seeking a guaranteed income
Where it works the worst:
This annuity may not be a good option for those who:
- Have a shorter life expectancy
- Need to keep their money liquid
- Do not plan to use the lifetime income feature
There are a number of key factors that should ideally be taken into consideration if you are thinking about purchasing an annuity. For example, when it comes to deferred annuities, it is important to keep in mind the length of time before you can access the money, as well as whether or not you may need access to the funds in case of an emergency.
If you are considering the purchase of the Guardian Life Fixed Target Deferred Annuity, then you can be assured that you can count on a certain amount of income for the remainder of your lifetime, as well as possibly income for another loved one, such as your spouse, as well.
However, even with the nice guarantees that come with this annuity, it may still fall somewhat short – and quite frankly, there could be a better alternative out there for you. In any case, the only way to truly know how this annuity may perform, based upon your particular situation and needs, is to have it tested. We can do that for you by running the numbers through our annuity calculator, and can then provide you with a spreadsheet showing the results.
In order to receive this information, just simply contact us via our secure online contact form here.
Have Any Additional Questions? Did You Happen to Notice Any Mistakes in this Annuity Review?
We realize that this review of the Guardian Fixed Target DIA annuity went a tad bit long. So, we thank you for sticking with us through to the end here. When creating our annuity reviews, though, we would much rather “err” on the side of being “too long” as versus not long enough.
Therefore, if you found that this annuity review was helpful for you, then please feel free to forward it on to anyone else that you think may benefit from it. Alternatively, if this review 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.
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