What's the Highest Rate on a 5 Year Fixed Annuity?

[ohbrother1]

I have a 70m with $180k looking for a 5 year cd alternative. Might not go below A rated but looking at all options.
Thanks!

 

[Tahoe Ray]

I have a 70m with $180k looking for a 5 year cd alternative. Might not go below A rated but looking at all options.
Thanks!

RNA is A- and currently at 3% (but is also a fraternal.)

If you can find an extra 20k (high band 200k), Midland is A+ and at 2.8%.

Otherwise you're looking at B++ and little to no liquidity from Athene and Sentinel at 2.85.

If you want all of the above (no fraternal, A- rating at 180k and some liquidity) you can drop down to AE at 2.6%.

(All subject to state availability)

Good luck...

 

[anonymous1]

What's the purpose of this money. Is it never money using it to live off of

 

[nathan.lee]

RNA is A- and currently at 3% (but is also a fraternal.)

If you can find an extra 20k (high band 200k), Midland is A+ and at 2.8%.

Otherwise you're looking at B++ and little to no liquidity from Athene and Sentinel at 2.85.

If you want all of the above (no fraternal, A- rating at 180k and some liquidity) you can drop down to AE at 2.6%.

(All subject to state availability)

Good luck...

Don't forget Liberty Bankers Life - Bankers Elite 5 at 3.00%. Downside is the B rating from A.M. Best.

 

[bill3173]

North American A+ will go 2.25 5 years. Beats the heck out of most cds, not to mention tax treatment.

 

[Tahoe Ray]

Don't forget Liberty Bankers Life - Bankers Elite 5 at 3.00%. Downside is the B rating from A.M. Best.

True. When he said that the client might not want to go below A, I thought that B might be a stretch but who knows. I should never ASSume....

 

[Larry Tew]

I know ratings are no guarantee of solvency, but they weren't drawn from a hat either. I've never asked a client what is the lowest rating he'd be comfortable with.

I make that decision, and as I've said in another thread, with ~130 companies rated A+ or A++, if I can't give the client what they want from that pool of companies, they'll have to get it from someone else.

 

[Tahoe Ray]

I know ratings are no guarantee of solvency, but they weren't drawn from a hat either. I've never asked a client what is the lowest rating he'd be comfortable with.

I make that decision, and as I've said in another thread, with ~130 companies rated A+ or A++, if I can't give the client what they want from that pool of companies, they'll have to get it from someone else.

Not counting captives, I see a grand total of 8 companies that are A+ rated or better, offering a 5 year MYGA. The two that have the best rates (Midland and NA), were mentioned in this thread.

 

[PhxSunsFan]

are ratings really that important.. arent there govt insurance programs that protect the clientin the event of insolvency? I dont sell this product class

 

[Newby]

are ratings really that important.. arent there govt insurance programs that protect the clientin the event of insolvency? I dont sell this product class

Financial strength of a company is hugely important. Especially with annuities.

Some A-rated companies have failed but it's way less likely. State guarantee funds are limited to a small amount and have restrictions on coverage like you can't be a resident of a different state.

You don't want to start out with a weaker company.