It appears that this is a 3-yr MYGA. Sold in Dec 2021 and will reach the end of its initial guarantee period in Dec 2024. The 2.3% is obviously not good compared to now but in 2021, the "market rate" for 3-yr MYGA was probably sub-3% anyway.I'm currently reviewing my mother's finances and came across a product that I'm not familiar with - Multi-Year Guaranteed Annuity. This investment is in her Traditional IRA and she is currently taking RMDs from here.
Below are the details:
Contract Date: 2021
Maturity Date: 2047
Beginning Accumulation Value: $127000
Ending Accumulation Value: $130000
Market Value Adjustment: -$5,182
Surrender Charge: -$8,982
Cash Surrender Value: $116000
Guaranteed Interest Rate through Dec 2024: 2.30%
Can someone walk me through what this means? Appreciate any insight you all can provide. Thanks.
RandomGuy
Your mom should have a chance to surrender the policy in Dec 2024 without fees (check the contract). Surrender it If the company does not offer a competitive renewal rate.
Statistics: Posted by indexfundfan — Mon Jul 22, 2024 4:08 pm