Annuity Vs CD ? Any One Have Experience With These?

chipcollector | May 18, 2024 | 111 posts since 2010

Have a CD coming due next week at Suncoast CU.

Leaving Suncoast due to their anemic interest rates.

Saw some very appealing interest rates on 5 year annuities from

A+ company (Midland National)Showing 5.75%

Also another (larger) co ( Mass Mutual ) at 5.50%

Never considered an annuity before but I kind of like the fact that the

interest is not taxed until the end of the annuity period which seems to be a plus.

Don't have a pressing need for the investment for income, so no issue with lock up.

Any annuity buyers out there who wish to comment?

Post a comment

choice1 | May 18, 2024 | 371 posts since 2023

Asking about two companies selling annuities for the long haul reflects a lack of appreciation of annuities. For time immemorial NY state was the benchmark for annuity regulation and neither of these are qualified to sell there! Short term may be a viable option. As noted elsewhere there are IRA qualified charitable annuities (funded from/by IRA CDs) out there paying up to 10% per year…. Do more research!

chipcollector | May 18, 2024 | 111 posts since 2010

From NYS website:

Company Detail
Company Search Print or Save details
NAIC#: 65935 DOM: Massachusetts Group: MASS MUTUAL L I C Phone: 413-788-8411
CPAF: 731 ORG: LF Group#: 435 Spl Risk:
DMV#: Website: www.massmutual.com Admitted Dt: 12/27/1855 FId: 041590850
Massachusetts Mutual Life Insurance Company
1295 State St
Springfield, MA 01111
Company Name History:
(No Data Available)
Current Writing Powers:
NYS Insurance
Law Section Code Line of
Business
Description
1113(a) 1 Life
1113(a) 2 Annuities
1113(a) 3 Accident And Health

chipcollector | May 18, 2024 | 111 posts since 2010

Those charitable annuities contemplate giving away the principal amount to a charity.
I guess if you are not planning on leaving the $ to your heirs, or don't have heirs, that might make a good deal of sense.

nutkin | May 19, 2024 | 60 posts since 2019

I was looking into opening an annuity but stopped when I learned I would be charged a 10% penalty for distributions prior to turning 59 1/2.

HZ | May 19, 2024 | 22 posts since 2019

I have had Fixed Rate Annuities for about 7 years. Basically same as CD. Different insurance in each state. IN Florida it is $250,000

chipcollector | May 19, 2024 | 111 posts since 2010

and ur experience was good i assume?
did u purchase thru Fidelity?

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