What We Will Cover in this Annuity Review
In this annuity review, we will be covering the following details regarding the Minnesota Life SecureOption Focus 3 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 are considering the purchase of a fixed annuity so that you can increase your retirement savings safely, while also ensuring that you will have a guaranteed stream of income in the future, then the Minnesota Life SecureOption Focus 3 annuity could quite possibly be a good option for you.
However, before you move forward with the purchase of this, or any, annuity, it can be beneficial for you to know more about it, as well as about how it may (or may not) work well with the other plans you’ve made for your retirement strategy.
Throughout the past decade or so, fixed annuities have had a renewed popularity – especially given the protection of principal they can provide – regardless of what occurs in the market, or even in the economy overall.
Unfortunately, because all annuities can be somewhat confusing, it is possible that an insurance or financial advisor who has presented you with one of these products has not given you all of the key details that you require for making a well-informed decision.
While advisors typically work to do what is in the best interest of their clients, due to the many “moving parts” on annuities, it is often necessary for investors to read over all of the “fine print” in order to anticipate how the product will work, and what to expect both now and in the future with it.
In addition to that, annuities are always considered to be longer-term financial endeavors. So, if you were to purchase one, and then later decide that you do not want to keep it, it could cost you a great deal in surrender fees.
This is where we can help.
Annuity and Retirement Income Planning Information That You Can Trust
If this is your very first visit to our website, allow us to personally welcome you here. We are a team of experienced financial professionals who are dedicated to providing you with non-biased and comprehensive annuity reviews. We’ve been offering in-depth annuity reviews for many years on our site, and because of that, we have become a trusted source.
If you have spent any amount of time on the Internet researching annuities, it could be that you have come across some highly conflicting details about these financial vehicles. This is not all that surprising, though, because there is a lot of information and a long list of different opinions about them.
You may also have attended an annuity seminar recently, where – in return for a free lunch or dinner – the presenter discussed in detail the Minnesota Life SecureOption Focus annuity or some other similar financial product.
In fact, in order to find out more details before you purchase an annuity, you may ultimately end up here on our website. Although there are a lot of very good sites online today that discuss the annuities they sell, some of these websites will attempt to lure people in by making some pretty bold claims like the following:
- Highest income payouts
- Lowest Fees
- Top-rated annuity carriers
- Guaranteed income for life
- Get your quote now!
But, even though these claims might sound very appealing to you – particularly if you want to grow your money and have a guaranteed income for life – it is extremely important that you make sure they are actually true before you plunk a large sum of your retirement savings down.
In doing so, you should ideally read over all of the information that you can find about the product. Unfortunately, doing so can be about as much fun as listening to someone run their fingers across a chalkboard.
This is where we come in!
If you truly want to know more about the Minnesota Life SecureOption Focus 3 annuity, then you are definitely in the right place now. In fact, we dare say that our website is the only place where you will be able to garner all of the important details about this annuity online.
We must warn you, though, that unlike most insurance and financial advisors who paint only a nice, rosy picture of the benefits, we will also include information about items that may be considered as drawbacks with this annuity. But that’s because we feel the only way to make a truly informed financial decision is to know the entire picture – not just part of it.
This annuity review has been developed in order to help you with better understanding the Minnesota Life SecureOption Focus 3 Annuity and to assist you with determining whether or not it is the right annuity for you.
Therefore, if you are ready to begin, let’s move forward!
Minnesota Life SecureOption Focus 3 Annuity at a Glance
|Product Name||SecureOption Focus 3|
|Type of Product||Immediate Annuity|
|S&P Rating (Minnesota Life / Securian Life)||A+ (Strong)|
|Phone Number||(800) 362-3141|
Opening Thoughts on the Minnesota Life SecureOption Focus 3 Annuity
Minnesota Life Insurance Company has a long history of providing financial protection and security to its clients. Initially started back in the year 1880, this company offers its products in 49 of the 50 U.S. states (all except for New York). Its parent company, Securian Financial Group, is also the parent company of Securian Life Insurance Company.
Considered to be strong and stable financially, Minnesota Life and Securian have received high ratings from all of the major insurer rating agencies, including an A+ from A.M. Best, an A+ from Standard & Poor’s, an AA from Fitch Ratings, and an Aa3 from Moody’s Investors Service. Securian has also received a Comdex Ranking of 92 (out of a possible 100). This puts the parent company of Minnesota Life in the top 8% of companies that receive this rating.
Due to the constant ups and downs of the stock market – particularly over the past decade or so – the demand for fixed annuity products has increased a great deal. These types of annuities can keep your principal safe – and, by going with a multi-year guarantee annuity such as the SecureOption Focus 3, you can also lock in a guaranteed rate of interest for a set period of time (in this particular case, for three full years).
However, due to the low-interest rate environment that we have been living in for nearly the past decade, unfortunately, the “price” of keeping your principal safe has come in the form of very low returns – returns that usually can’t even keep pace with the rate of inflation. This, then, could have an impact on your future purchasing power and, in turn, your overall retirement lifestyle.
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. Minnesota Life 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 additional information 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 Minnesota Life / Securian Describe the SecureOption Focus 3 Annuity
According to the SecureOption Focus 3 annuity materials, this annuity offers the following benefits:
- Guaranteed protection of your purchase payments against loss
- Penalty-free access to part of your annuity in an emergency
- Tax-deferred compounding to enhance long-term earnings
- A stream of income that can be guaranteed to last a lifetime – regardless of how long you need it.
The SecureOption Focus offers the ability to lock in an interest rate for the initial guarantee period. Therefore, the SecureOption Focus 3 provides a 3-year period where your rate cannot go down, regardless of what happens in the economy and/or with interest rates overall.
Once the initial period has expired, Securian / Minnesota Life will declare renewal rates for one-year time periods. The renewal rate, however, will never dip lower than your minimum guaranteed rate.
This annuity has some other features on it, such as a return of purchase payment guarantee. Here, if the unexpected occurs and the annuity needs to be surrendered, the purchase payments can be received back – and the amount is guaranteed to be at least equal to the purchase payments, minus any previous withdrawals.
How an Insurance or Financial Professional Might “Pitch” This Annuity
There are many benefits that can be obtained through this particular annuity product, including a guaranteed interest rate period, as well as a guaranteed minimum renewal rate. If you have been approached by an insurance or financial professional who is offering you this annuity, then they may have keyed in on certain features that it offers, such as a guaranteed rate, as well as an ongoing stream of income in the future that can last throughout your entire lifetime – regardless of how long that may be.
However, as an educated consumer, it is likely that you have probably also noticed that insurance and financial companies do a great job of making sure that their products sound enticing. For instance, if you go by the features mentioned above, then you may have even decided that this is a great annuity for you.
But it is also really important that you keep in mind that a salesperson who will be earning a commission on the sale of a financial product is very likely to focus in on the highlights that the product provides, while possibly not making a big deal about any of its potential drawbacks. With that in mind, you will definitely need to take a closer look at the “fine print” for the product – particularly if the purchase will require you to plunk down a sizeable portion of your retirement savings.
When it comes to fixed rate annuities, one of the main items to think about is the low-interest rate percentage that you will be locked into. Plus, because annuities will typically require that you pay a surrender charge over the first several years on your withdrawals, it could be quite costly if you want to move some or all of your money over to another financial option.
On top of all of that, even though protecting your principal – as well as securing lifetime income in retirement – are likely important, the reality is that these options can usually be found on most any annuity. So, if you are able to find these features, along with the opportunity to attain a higher return on your funds, then it could very well be worthwhile to take a closer look at some other options that may be available to you in the marketplace.
What About Fees on the SecureOption Focus 3 Annuity from Minnesota Life?
In addition to knowing how your money may perform in a fixed annuity, it is also a good idea to know about any of the additional charges or fees that you may be subject to, both during the annuity’s “accumulation” phase, and when you’re taking income. The SecureOption Focus 3 annuity from Minnesota Life has seven full years of charges on withdrawals. These start at 7%, and then gradually grade downward from there.
Withdrawal Charges on the SecureOption Focus 3 Annuity from Minnesota Life
The Annuity Gator’s End Take on the Minnesota Life SecureOption Focus 3 Annuity
Where it works best:
This particular annuity will usually work the best for those who are looking for:
- Safety of principal
- Guaranteed lifetime income in retirement
- Guaranteed rate protection
Where it works the worst:
The Minnesota Life SecureOption Focus 3 annuity may not be an ideal fit if you:
- Want access to most or all of your funds within the first nine years
- 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.
You can also have the annuity tested, using your own personal figures, in order to better determine how the annuity may perform for you. We can provide this testing for you, at no charge, by simply letting us know that you are interested.
There is a long list of criteria that you should ideally consider prior to purchasing an annuity so that you can have a better idea of whether or not this product is right for you. Prior to taking the next step, know that any annuity purchase should be considered as a long-term endeavor. So, you should feel comfortable in knowing how the annuity can help you with achieving your financial goals.
If you are moving towards a fixed annuity, you can be assured that it can offer your principal protection, along with an ongoing and guaranteed income in retirement. This is the case, regardless of how long you may live.
With the Minnesota Life SecureOption Focus 3 annuity, then, there are definitely some positive and attractive features about it. But, it can also still fall somewhat short – and quite honestly, there may be some better alternatives out there that are available for you. This is particularly the case if you are looking for lifetime income, as well as the opportunity for growth.
If you still have any additional questions regarding whether this particular annuity is the right one for you, or even if you just simply need some additional assistance in guiding you in the right direction, please feel free to reach out to us directly through our secure contact form here.
Need Any Additional Information? Did You Notice Any Mistakes?
We know that this annuity review may have been a tad bit longer. So, thank you for sticking with us through it all. In presenting this annuity review, we would much rather “err” on the side of offering “too much” information, rather than not enough. Therefore, if you felt that this review was helpful, please feel free to forward it and share it with anyone else who you think may benefit from it.
Also, we realize that annuity information can change on a regular basis. So, if you happened to see any information in this review that may need to be revised or updated, please let us know and we will be happy to make any of the necessary corrections.
If this review has instead caused you to be more confused about annuities and how they work, or if by reading over it, it has prompted you with additional questions, then please click here and let us know that, too.
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