The Savage Truth: These annuities have gotten more popular, and with good reason
March 1, 2023 by Terry Savage
Although I have previously warned against many annuities, with good reason, this column will focus on one type of annuity that might serve a very good short-term purpose in your financial plan.
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Wink’s Note: It looks like Terry Savage may be warming-up to annuities!
**Has hell frozen over?**
While I have Terry’s attention-
Did you know that MYGAs are currently offering guaranteed yields of as much as 6% on a three-year contract?
You say, “This is not an immediate annuity, which is a promise to pay you a fixed sum of money at fixed intervals as long as you live.” While it is true that a MYGA is not an immediate annuity, ALL annuities offer guaranteed income for the purchaser’s lifetime. MYGAs included.
SN: I will look forward to hearing why you advise that consumers should avoid indexed annuities “like the plague.” Let me know if I can help you with the fact-checking on that one!
FYI- “At the end of the MYGA guaranteed period,” you don’t have to do a 1035 exchange to “roll over” the contract. If the purchaser likes the rates being offered, the contract will automatically renew, typically 30 days after the initial surrender charge term expires.
I am also interested to see you directing consumers to “Stan the Annuity Man” for their annuity purchases. Why is that? -sjm