Best company for short term annuity?

[shooter]

Will Rodgers quote

I'm more interested in the return of my money,
than the return on my money.

Companies rated A- and B++
I would give up some interest to be with a higher rated carrier.

But that's me.

 

[scagnt83]

Refer to the Bankers life thread to see the results of chasing yield over safety.

 

[DonP]

Refer to the Bankers life thread to see the results of chasing yield over safety.

You can and should chase yield with fdic insured cd's .

 

[scagnt83]

You can and should chase yield with fdic insured cd's .

Except we arent talking about CDs. This discussion is about annuities. Banks dont have ratings.

 

[Tahoe Ray]

Companies rated A- and B++

A- and B++ are not in the same category for AM Best.

In fact, several E&O carriers specifically exclude "B" rated carriers from coverage.

You can and should chase yield with fdic insured cd's .

You should. But you're also going to get substandard returns. For some that's ok. For others, it isn't.

If you sell annuities, you should also chase yield but only from companies with a decent balance sheet/diversity of products/solid ratings etc.

Canvas is an online annuity seller that currently has some of the best rates on the market.

Their paper is w/ Puritan Life.

A client has to weigh buying their annuity vs. one from someone like NY Life or North American who also have very competitive rates (less than Canvas) but much higher ratings.

It's no different than buying treasuries vs. munis vs. investment grade bonds vs. junk bonds. Better ratings are usually lower yield.

Buying CDs for anything longer than 18 months is likely shorting the client on an opportunity that is similarly low risk, though.

 

[Allen Trent]

You can and should chase yield with fdic insured cd's .

Possibly, but FDIC doesn't issue checks in weeks or months either. Bank or insurance failure & liquidation is a slow process

 

[LostDollar]

Stumbled on to Athene MYG today.

This appears to have a choice of 3-5-7 year terms and a minimum initial premium of $5K.

as of today (8/13/2022) rate for the MVA version of the product seems good.

 

[Tahoe Ray]

Stumbled on to Athene MYG today.

This appears to have a choice of 3-5-7 year terms and a minimum initial premium of $5K.

as of today (8/13/2022) rate for the MVA version of the product seems good.

They're the biggest fixed annuity carrier in the country.

Rates are constantly changing (weekly) so you just need to grab one that fits your situation as soon as it makes sense.

Just make sure to buy from carriers that have solid ratings and want to be in the business long-term.

 

[rats0001]

none they are all crooks

 

[goillini52]

tons of carriers out there that offer MYGA annuities that look & function much like some CDs in being able to lock in a rate for 3, 5, 7 or 10 years.

Here is a website for MYGA products you can sort through by putting in exact information. looks like most 5 year current rates are between 2.1 & 2.9%. Multi-Year Guaranteed Annuities Rate Table | AnnuityAdvantage

Find a good Annuity IMO so they can help you through the features & details that matter to your specific client in terms of liquidity, surrender charges, etc

Nice site.