Quote:
Originally Posted by Plinker
Agree. The commission on a MYGA is about 1%. Certainly not “huge”. I have yet to see a MYGA that does not have a higher rate than a CD, often substantially higher. In non-qualified accounts, the interest is deferred until the end of the contract and can be rolled over to a new MYGA, further postponing taxes on the interest. In qualified accounts, it doesn’t matter. I have purchased a number of MYGA products over the years (qualified and non-qualified assets) and would never consider a CD. My non-qualified MYGA allows a 10% withdrawal yearly with no surrender fees.
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A 1% commission can add up very fast. There is no fee AND no commission for the MYGA I purchased. I won't go into details about how I know that's fact but it's one of the very few annuities offered by Equitable (AXA Equitable) that is structured in that manner. However, the other 99% of annuities they offer can carry high fees and 1-2% commission. Annuities are certainly not for everyone and the "devil is in the details".