Stinky wrote: Sun Aug 31, 2025 2:15 pm
JMDuran wrote: Sun Aug 31, 2025 11:45 am
Hello Stinky.I have been lurking on this thread for a few weeks now and have read through the 74 pages, various websites mentioned, and the video presentation.
As many others before stated, my thanks to you for initiating this thread and continually sharing your experience. Of course, I also want to thank the many others contributing their insights. Without this, I don’t know I would consider MYGA as an option.
I thought I was ready to purchase earlier but when I came across Skywalker10’s Aggregation post I had to review/rethink aspects. I’m not an IRC expert but after reviewing it and other websites now feel comfortable with a strategy of purchasing from different vendors, qual and non-qual accounts, and also with my wife’s account. It’s not a lot of money but I tend to be conservative when venturing into something new. Our timing was impacted but overall, it works to avoid the issue.
After all the reading, I think I am ready to proceed with 3-4 small MYGAS. I landed on the following.
• Gainbridge Steady Pace (5.5%/5 years)
• Knighthead Life Stay Sail (6.1%/5 years)
• Americo Platinum Assure (5.3%/4 years)
• Puritan Life Insurance Future Fund (6%/3 years) – the reported slowness to process is weighing on me.
For any purchase with non-qualified taxable accounts, I plan, as applicable, to use the free withdrawals to spread the tax hit. I’m in Texas and each purchase will be well under the state guaranty limit.
Considering the holiday, my timing is off and I realize the rates might go down before I get the contracts in place but hopefully, they are not significantly lower. I plan to go through Blueprint for the Knight Head/Americo, as their website I found was the most comprehensive.
An aspect I do not understand is the reference to “LATEST ANNUITY COMMENCEMENT DATE The Contract Anniversary following the Annuitant’s 100th Birthday” in Syc’s post. I have seen some annuities use the 95th birthday too in their descriptions. Stinky, you mentioned this is typical but what does this really mean?
Again, many thanks to you and others for sharing your insights and ups/downs of MYGA ownership.
Welcome 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?
