Fixed Annuity Rates - Who's Good Right Now?

[Todd King]

Are you willing to share your source? A PM would be fine.

I suppose I am the source. I get this straight from the commission grids.

 

[bark3005]

Try William Penn Association. They are a fraternal. Last I checked you could lock in 4.25% for 5 years.

 

[newbie2010]

Since I'm getting inquires about this, I should go ahead and mention that the particular states this product is available in are as follows: CA, CO, CT, FL, IL, IN, IA, KS, MD, MI, MN, MO, NE, NJ, NY, OH, PA, TX, VA, AND WI.

What company is this with? What is their rating?

 

[Todd King]

What company is this with? What is their rating?

I had posted the info before, but here it is again:

The name of the company is CSA Life. They have been in business for 154 years and are THE oldest society in America!
This is a traditional fixed annuity we are talking about as well. It's good to know that through all the mess with the economy in the past few years, CSA has not changed their rates at all.
FYI...They also have good FE rates with no telephone interview, no MIB check and no Script check.

 

[0b1kanobee]

They (CSA) have a minimum interest rate of 3%. That is really good. How can they offer rates this good? Where is their money allocated and what guarantees do I have?

 

[Todd King]

They (CSA) have a minimum interest rate of 3%. That is really good. How can they offer rates this good? Where is their money allocated and what guarantees do I have?

I had to ask CSA about this to get the correct answer. Here it is:

[FONT=&quot]Our portfolio is broken down into two categories, Investment Grade and Investment Yield. Investment Grade are our higher rated investments which are less volatile in the market place compared to our Investment Yield investments which are a little more risky. As of September 30th, 2009 our portfolio consisted of 94% Investment Grade and 6% Investment Yield investments. We at CSA discuss our investment portfolio with our investment manager daily and continually look at ways to reduce our risk. Our investment philosophy is to subscribe to a policy of broad portfolio diversification, to reduce exposure so that we can absorb market volatility. As of September 30th, 2009, our investment in any single US corporation was less than 1.3%; the majority is well under 1%. We have experienced high profitability the last 3 fiscal years which allowed us to add a 1 point bonus on our Annuity products across the board last year and into the beginning of 2010.[/FONT]

 

[Norwayguy]

I had to ask CSA about this to get the correct answer. Here it is:

[FONT=&quot]Our portfolio is broken down into two categories, Investment Grade and Investment Yield. Investment Grade are our higher rated investments which are less volatile in the market place compared to our Investment Yield investments which are a little more risky. As of September 30th, 2009 our portfolio consisted of 94% Investment Grade and 6% Investment Yield investments. We at CSA discuss our investment portfolio with our investment manager daily and continually look at ways to reduce our risk. Our investment philosophy is to subscribe to a policy of broad portfolio diversification, to reduce exposure so that we can absorb market volatility. As of September 30th, 2009, our investment in any single US corporation was less than 1.3%; the majority is well under 1%. We have experienced high profitability the last 3 fiscal years which allowed us to add a 1 point bonus on our Annuity products across the board last year and into the beginning of 2010.[/FONT]

So the answer would be no State Guarantee backing, the account would be backed only by the claims paying ability of the carrier...You might want to ask your DOI if you were recommending the sale of a fraternal annuity product if disclosure about the lack of State Guarantee coverage should be made...I know they don't like using the existance of the Guarantee Fund to make a sale, but I know Maine had a coniption about the sale of UCT Med Supp porducts.

 

[0b1kanobee]

Still interesting and I would have to look at it a little further. Thanks for that information you took the time out to share.

 

[Todd King]

Still interesting and I would have to look at it a little further. Thanks for that information you took the time out to share.

You are very welcome!!

 

[HarryRenard]

Harry, the commission is certainly not the best at 3.5%, but if it is good for the client, then 3.5 is not that bad.

3.5% seems pretty fair.
Seems like a pretty good place to park some money till rates come back up a little.
Thanks for the info.