Top Rates for 5- and 7-year MYGAs in Florida?

[MYGAnewbie]

would stan the annuity man meet your needs?

Haven't spoken to Stan yet but did watch a couple of his videos and ordered his books!

 

[Allen Trent]

Allen, you guessed right! I emailed and tried to call the carrrier, but like you said, they seem completely overwhelmed with everyone trying to lock in before a potential pivot next week.

Question: do you know any of the carriers that would sell a "fee-based" product directly? I have reached out to all the brokers I use (including TDA/Schwab and Etrade) and neither of them had any clue what I was talking about.

With this kind of a product, I think it would be a horrible idea to pay fee-based planners to be involved. There is nothing fee-based planners can impact on a fixed interest rate product. An agent that sells you a MYGA will make a one-time commission of 1-3%. A few-based planner, charging an annual fee of 1% will cost you actual money out of pocket to pay the fee, whereas the agent would receive the commission from the insurance carrier, not from you. not to mention, you could pay a fee-based planner 10% over the course of 10 years, amounting to $30-35k, compared to the carrier paying the agent $6-7K total & not impacting your total return

I am sure if you post the carrier that you are looking at, some agents in this forum will contact you to write up the policy

 

[scagnt83]

Why not go to an independent agent and have them shop the market for you??

Nationwide shows 5.35% as the 7 year rate. You are probably seeing a Fee Based Product showing 6.38%.

Here is the issue with a fee based product... you are charged a fee by the advisor. Usually 1%. So you net 5.38%. And they use annuities as part of your overall financial plan, so if you are not commited to them as a planner, they are not going to place you in an annuity. Notice I didnt say sell... because they legally cant sell an annuity. It legally must be part of an overall plan they created for you.

Bank products sometimes pay more... sometimes they dont. Usually its about even. Banks are going to be limited with the product they offer usually.

And independent insurance agent can contract with any carrier and can shop the market on your behalf. That is what we do.

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Going back the the rates/products. With sums that large, I would recommend using a carrier with at least an "A" rating, that excludes an "A-".

That would put you at 5.40% on a 5 year product with an A rated carrier. And 5.5% on a 7 year product.

 

[MYGAnewbie]

Agree with all the comments regarding fee-based planners. Yet to meet one who could resist not giving me an hour lecture as to why my choice of MYGAs is horrible, inappropriate and would inevitably lead to poverty. Still, any chance an independent agent on this forum could get me such a policy directly from the carrier in exchange for addressing all of my annuity needs? Specifically, considering Aspida Advisory 7 High Band @5.8. Unless, something is wrong with Aspida?

 

[Allen Trent]

Agree with all the comments regarding fee-based planners. Yet to meet one who could resist not giving me an hour lecture as to why my choice of MYGAs is horrible, inappropriate and would inevitably lead to poverty. Still, any chance an independent agent on this forum could get me such a policy directly from the carrier in exchange for addressing all of my annuity needs? Specifically, considering Aspida Advisory 7 High Band @5.8. Unless, something is wrong with Aspida?

Hopefully someone with more info will chime in. Only thing that rings a bell with me is that Aspida is somehow connected to Global Bankers. Either Aspida acquired global Bankers or the executives from Global Bankers are now running Aspida. That concerns me if true because Global Bankers is in liquidation currently as their owner is in jail for fraud, etc. 1 of the entities was Colorado Bankers.

Again, not 100% sure on those exact facts, but do some research on who the Aspida executives are, etc. Remember, highest rates & highest commission are not a long term viable business model

 

[Tahoe Ray]

Specifically, considering Aspida Advisory 7 High Band @5.8. Unless, something is wrong with Aspida?

I don't think many on this forum can write that version of the product. My Aspida products have a different name. "Advisory" normally denotes that the product requires some kind of securities/RIA licensing.

I can check with a few of my brokers in FL and see if anyone has it and what the deal is.

Either Aspida acquired global Bankers or the executives from Global Bankers are now running Aspida

Aspida acquired Global.

 

[scagnt83]

Still, any chance an independent agent on this forum could get me such a policy directly from the carrier in exchange for addressing all of my annuity needs? Specifically, considering Aspida Advisory 7 High Band @5.8.

No. Legally they can not unless they are a Registered Investment Advisor.

I can confirm that is a RIA only product.

And if they are an RIA, then they would be legally required to do a thorough financial analysis of your situation and recommend the MYGA as part of an overall financial plan they create for you. Plus they would charge a fee of 0.5%-1% which is directly deducted from the MYGAs account balance.

Aspida Synergy is the insurance agent version of Aspida's MYGAs. The 7y rate on it is 5.55%

So at 5.8%.... minus a 0.5% advisor fee... your net is 5.3%.... less than the insurance agent version at 5.55%. And most RIAs charge over 0.5%.

 

[Newby]

Allen, you guessed right! I emailed and tried to call the carrrier, but like you said, they seem completely overwhelmed with everyone trying to lock in before a potential pivot next week.

Question: do you know any of the carriers that would sell a "fee-based" product directly? I have reached out to all the brokers I use (including TDA/Schwab and Etrade) and neither of them had any clue what I was talking about.

Usually the fee is for a total financial plan. Adding a fee on to an annuity that has no fees would not be in your best interest.