Category: Annuity News

Cap Rate Increase – 6.25% – 7 Year Indexed – Up to 6.50% Comp – “A” Rated

Carriers Keep Rates Moving Up One of our “A” rated carriers just set another new bar for cap rates.  In addition to the 6.25% annual point-to-point, the carrier is also offering a 2.15% monthly point-to-point rate along with a 3.00% fixed account. In addition to the normal nursing home and terminal illness waivers, the carrier offers 10% penalty free withdrawals of account value in ALL YEARS. Commission through the end of June is 6.00% for non age reduced cases; but, if you use the electronic application process, the carrier will pay an additional 0.50% commission. When considering the “A” rating, the rates offered to clients, and the commission, this is a product you want in your toolkit!  Call of email us for...

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Risk Averse? How About “Rate” Averse? 3-4-5 Annuity Ladder Idea

Fed Rate Increases Continue as Does Volatility Stocks could do no wrong.  Whoops!  10-year Treasury yields were on a straight path up with no stopping.  Whoops!  Well, whoops for a little while at least…. It appears the risk markets are in somewhat of a conundrum.  When will it all get sorted out?  Great question.  When you find out, please let me know. If your clients are seeking safety for their principal while still earning solid relative interest rates, consider a 3-4-5 annuity ladder.  It’s a very simple concept.  Take a bucket of shorter horizon client funds and split in to 3 different annuities that mature over 3, 4, and 5 years.  See below: 3-year rate: 2.75% 4-year rate: 3.10% 5-year rate: 3.60% Using simple math (setting aside compounding power), this structure produces an average annual rate of 3.15% with an average holding period of 4 years.  At the end of 3 years, your client can go rate shopping again with the first bucket or can walk away with it.  The same applies to the 4 and 5 year buckets.  To offer this exact structure, a minimum of $50,000 is needed to spread across the maturities. BONUS IDEA: For those clients who may be seeking an even higher interest rate and who are comfortable with a potential zero in some years, use an indexed annuity for the 5-year portion.  With a...

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Rate Increase – 7 Year MYGA – 3.85% Fixed – 3% Commission

Fed Rate Increases Continue to Benefit Your Annuity Shoppers Effective April 1st one of our B++ carriers will raise their 7 year MYGA to 3.85%!  Think about that.  With 10 year Treasuries yielding 2.83% as I type this, your clients can get more than a full percent higher annual rate with a 3 year shorter commitment! For liquidity, the carrier allows interest to be withdrawn with no penalty and also provides for waivers of penalties due to terminal illness or nursing confinement.  The full account value is paid as a death benefit. Product minimum is $20,000 and commission of 3% is paid through issue age...

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