JMDuran wrote: Sun Aug 31, 2025 11:16 pm
Stinky wrote: Sun Aug 31, 2025 2:15 pmWelcome to the Forum! I’m glad that you found us, and I’m pleased that you’ve found the information in this thread useful.
You commented on the “All About Annuities” presentation I made last summer for the Bogleheads Chapter series. While the video is over a year old now, I believe that most everything presented in the video is still current. For any who haven’t seen it, here’s a link to the video:
https://www.youtube.com/watch?v=MDXfw6d7tIc
I have comments about several things you mention in your post –
— Most MYGA writers offer a “rate lock”, where the interest rate on the date that you sign the application will be guaranteed to be honored, provided that you “fund” the annuity within the carrier’s timeframe. In other words, if you sign an application on September 2 for an annuity that has a 60 day rate lock and a rate on September 2 of 5.00%, you’ll get that rate of 5.00% so long as you fund the annuity by November 1, even if the interest rate from that carrier has decreased between 9/2 and 11/1. Further, in my experience, you’ll get the higher rate if, for example, the carrier increased its rate to 5.10% after September 2 and your funding is applied to your application while the higher rate is in effect. Rate lock periods vary by carrier and by funding method (bank account, exchange from another annuity, or IRA transfer), and range between 0 days and 60 days.
I believe that Gainbridge is decreasing its rates effective September 2. I believe, but am not certain, that you could “lock” the current rate if you fully complete an application through the website by September 1 (that is, tomorrow).
Usually insurers will give a few days notice to Blueprint Income and other agents before they change rates. But I have seen instances where rates are changed with no prior notice to the agents, effective immediately.
— Your choice of products and carriers looks just fine to me.
— Every annuity is required to have an “annuity commencement date”; that is, the date at which the annuity must be “annuitized” and converted into a stream of regular payments. However, the vast, vast majority of annuities are surrendered or exchanged well before the annuity commencement date, which is age 95 for many annuities. I have no plans to be still invested in MYGAs when I’m 95 years old.
Again, I’m pleased that this thread was able to help you understand MYGAs. (And I’m honestly rather amazed that anyone would plow through the 3,600 + posts in this thread since late 2020. )
Please let us know if you have questions / problems as you move forward in your purchase process.
Yeah, it was a lot of reading but on some pages, it was a quick scan. Nonetheless it took time. As for the commencement date I am now clear. Yeah we don’t plan to go that route but it’s good to know what it means.
I completed the Gainbridge application tonight. I already have one question. The on-line signed Gainbridge application has a contract number associated with it the Document section of the portal but the status shows “awaiting funds”. I don’t see any mention of rate, rate lock timing, funding timing, right to cancel within x days, etc. Is a separate actual contract with these details provided before, or after, the funds are received by Gainbridge?
This happened to me as well. When you sign up for an application, you are immediately locked into that rate for 30 days, waiting for your funds. It won’t show you, but if you call them, they will tell you what it is. What you see on their website is exactly the rate lock. Your funds have to be there before 30 days, or the rate could change only if they changed it. If not, then it will be the same rate. They usually don’t change their but every 3-6 months. After your funds are received you can get into your account and see everything. There are 4-5 different tabs to click. You will see your complete contract with the rate lock which you can print. It even shows you a graph, surrender charges, etc, It is very nice. Hope this helps.
