Troy Sharpe: We just launched our Multi-Year Guaranteed Rate Annuity search tool on the website. I want to run through it with you briefly so you on your own time can search to see what guaranteed rates are out there. This would be valuable to you if you have CDs that are coming due, if you’re just sitting in cash and you don’t know what to do with the money, you want it to be safe, but you’d like to earn 3% or 4% per year compound interest on that money.
Also, you just may have some money, you’re tired of being in the stock market or tired of losing money in bonds, and you want somewhere safe for that money to go. I’m going to show you how to use the tool. You can search for your rates. We constantly update this information. We’re going to jump right into it.
Go to oakharvestfg, as in financial group, .com/annuity, so oakharvestfg.com/annuity. We’re building this whole page out. We’re going to have a ton of educational content. The videos we’ve been doing in this annuity series will be here as well as a ton of other information. It’s going to be your go-to source for guaranteed rate, for lifetime income, for safe growth. It’s going to be a very, very powerful page. It’s in process, we do have this piece up so I want you to go and search if you have CDs coming due, if you have money sitting in cash, and you just want it to be safe, you’re not sure what to do with it, or if you simply are tired of the volatility and you want to add something to the portfolio as a piece of the overall pie that’s safe and give you guaranteed rates of return.
We have the bar scrolling across top here where it just simply gives you the highest rates currently for 3-year, 5-year 6-year, and 10-year. From my experience, as we talked about in the multi-year guaranteed rate video, five years is typically the sweet spot. As you see here, you’re not getting much reward for going beyond 6 years and 10 years. Five years, guaranteed interest per year compounded typically is the sweet spot for these tools. If you come over here you’ll see live rates. As we go through this tool, you’ll see it’s an easy way for you to find what the fully guaranteed rates are in the marketplace from all the different insurance companies that are out there and the specific details that you need.
When you find something that you like, you can simply click Get Info & Free Brochure here, or you can come down here and click Learn More on the particular company that you like. That will bring a form that you can fill out, give us your contact information, and we’ll reach out to you. We’ll assist in the paperwork to make sure there are no errors, take as much of this off of your plate as possible, assist in transferring the money from its current institution to the new institution, make sure there are no taxes, no excess fees, or anything along those lines. Just make sure everything goes smooth.
Now full disclosure here, we are paid from the insurance companies if you decide to do business with us. They require that you go through an intermediary and if you’d like the content on this website, if you think we bring value or if we do a good job, we appreciate you giving us the opportunity to earn your business. We are paid typically 1% to 2.5% from any of these companies out here. This does not reduce your principal, it does not reduce the interest earned. Everything is fully guaranteed but that is how we get paid from the marketing budgets of those companies.
What states are in matters so put your state in. You can put the dollar amounts that you’re looking for. This is just simply filtering for minimum, maximum premium amounts. Your age. RMD-friendly means if you hit your RMD age, are you allowed to go in and take money out to not incur a penalty. The wide majority of these contracts are going to be RMD-friendly but if you’re over the age of 72, I would encourage you to click yes on this RMD-friendly one. Minimum AM Best. This is the minimum AM Best rating. B++ and above is considered to be investment grade.
Remember we did in the introduction to annuities video, we talked about the statutory accounting system, the dollar-for-dollar legal reserve. If it’s a B++ company or an A+ company, they have 100% legal reserves of every single deposit that is on hand. They’re not allowed to invest this money in the stock market or in risky derivatives or make risky bets. Essentially, they’re investing in long-term real estate, long-term government bonds, and long-term investment-grade corporate bonds. Investment-grade corporate bonds, again, B++, AA-, et cetera, all the way up.
If you want an A-rated company, great, simply put an A-rated company in here. Personally, I would not go below a B++ rating even though your B companies or C companies they have a dollar-for-dollar legal reserve. More than 100%, actually. They’re audited by all the states that they do business in. Typically, your lower-rated companies have been in business for less time or they could just be really, really tiny in size, or they could have trending financials that are going down so we want to stay away from them. Your B++ companies are going to be stable your A-rated companies, your A+-rated companies are going to be super stable. They’re secure.
Life insurance companies are not FDIC insured but they are insured by what’s called the State Guarantee Association so check your particular state for the limits. Also keep in mind that life insurance companies, historically, are the most stable and most secure financial institutions in the world. Whereas they have more than 100% legal reserve and they’re not allowed to do risky complex investments with the portfolio, whereas banks typically have anywhere between let’s call it 5% to 10% reserve and they can do very, very risky things with their investments, with your deposits. Just to understand the differences there, we covered this in detail in the previous video but I want you to understand I want you to be into highly rated companies because that is more secure than less highly rated companies.
Next, you have the company here so you can search by particular company if you are a fan of one particular company. We are independent, though. I don’t recommend you just searching for one company. Let’s find the most highly rated companies out there that are offering the very best rates that fit your situation. Years. If you want to search a particular timeframe again, I recommend keeping it five years and below because that’s where the most competitive rates in the marketplace are today as of this recording and have been for a few years. Six years, sometimes you can get an extra 10 or 20 basis point or maybe it’s 4.1%, 4.3% for six years. That might make sense for you.
Typically, I recommend avoiding the 7, 8, 9, 10 years simply because we’re not getting as much value there. Range, we can select a range so if we want to look at everything in the marketplace that has a surrender charge period, years one through six, we can input it here. Then we see the years, the maximum number of years is one through six, and they’re going to be automatically ranked by the company that gives you the highest yield.
Here’s a great example. American life B++ company, five years, 4.17%. Now, I want to show you real quick just some of the financials of the B++ company so you know how to access this on this website here. If you come and you click the company name, American Life & Security Corp, going to give you the year founded, what state, the insurance company’s domiciled in, the actual website here, their address a little bit about the company. Here we go, we got assets in liability. Remember I told you about the dollar-for-dollar legal reserve system. They have assets of $1.1 2 billion, liabilities of a little more than a billion, they have a surplus here, a capital and surplus, very important number, of $74 million. A 107% assets to liability ratio. They are B++ rated with AM Best which is the fifth highest out of 15 possible ratings. Also, we have information down here. They have a five-year guaranteed rate, a three-year, and then they also have an Annuity Advantage Classic 5.
If you want to look at the details more specifically on any of these particular products, feel free to click on that. Again, the insurance company requires an intermediary to go through to help get this in place so if this is the company that you want, just simply click on the button and reach out to us. The people here in our office will help you fill out the paperwork, make sure the money gets transferred with no issues, no taxes, no concerns and see everything set up for you.
Well, someone may say, “You know what, Troy, I really want an A-rated company and Oceanview right beneath it is a minus rated 4.15%, but it’s six years. Is that a good trade-off?” Now, the B++ companies, again, you’re going to have a stable outlook, the AM Best ratings are very, very sound when it comes to the financial stability of these companies, but some people may just feel more comfortable with an A- company and that’s completely fine.
The B++ companies in the life insurance industry, they’re like those old Avis commercials, “We try harder,” so because they have that B++ and sometimes even an A- rating, they’re always- Not always. -they’re most of the time going to offer the most competitive rates, the best growth opportunity, the most income, because like those old Avis commercials, they try harder. All of this is pretty self-explanatory.
If you have CDs that are maturing, if you have cash sitting around earning zero, essentially losing to inflation, or if you just want to add some safe growth tools to the portfolio, your next steps are to click the learn more button. You can also do. Up here. A form is going to pop up where you’ll input your name, your email address, and your phone number. You’ll reach out to us. One of our agents will be in contact with you shortly to help fill out the paperwork, make sure the funds get transferred properly, and even incorporate it into a retirement plan if you so choose.
Now, when you contact us and we assist you in getting this set up for your portfolio, we will be compensated by the insurance companies. This money does not come from your account. It comes from the marketing budgets of these insurance companies. If you see this guaranteed interest rate, that’s what you’re going to earn. There is no deduction in interest, there’s no deduction of principal. The typical commissions for these tools are somewhere between 1% and 2.5% on average. Again, received from the marketing budget of the insurance company, not from your account. As you see, we have a really cool tool here. Just go to oakharvestfg.com/annuity, and you can search for the highest, most competitive guaranteed rates out there for your safe growth tools.
These are designed to replace CDs, replace bonds, possibly, replace cash that’s just sitting there losing to inflation. Go to the website, do a search. When you find a company or a specific product or rate that gets you interested, simply reach out to us and we’ll help handle all of that paperwork, all the administrative work, to make sure that this is as seamless of a transition for you as possible.