Pacific Harbor offers a guaranteed interest rate for 3 or 5 years, helping advisors provide predictable, tax-deferred growth and principal protection at a competitive rate.
The Market
Since their introduction in the Commission-Free space, MYGAs (multi-year guaranteed annuities) have become one of the most popular DPL Member solutions for improving fixed income allocations. Generating reliable returns above today’s yields1 for a lesser duration, these simplified products can help advisors gather assets that would otherwise be held in cash or CDs, protect principal from market volatility, and ultimately improve portfolio performance.
Why DPL Likes Pacific Harbor
Pacific Harbor offers competitive 3- and 5-year guaranteed interest rates. Premium is protected from market downturns and accumulates tax-deferred, allowing for greater growth potential when compared to traditional fixed income instruments like bonds. Two rate levels are available based on premium amounts (<$200/$200K+).
How to Think About Commission-Free MYGAs
When your client needs:
PRINCIPAL PROTECTION: Fixed annuities are typically used for clients nearing or in retirement, as they protect principal from market downturns, yet provide a minimum guaranteed rate of return.
FIXED INCOME: Fixed annuities provide a consistent stream of income for clients that are looking to de-risk their portfolios from equities.
CASH REPLACEMENT: Fixed annuities can be used instead of cash investments, such as CDs or money market funds, to help generate better returns subject to the terms of the contract.2
Product information sourced directly from ria.pacificlife.com
1MYGA rates available through DPL compared to US Treasury Yield Curve, and comparable CDs via BankRate.com, June 1, 2022.
2Surrender charges, market value adjustments and other contract charges may apply that can reduce the premium. A surrender during the surrender charge period could result in a loss of premium. The surrender charge and market value adjustment may reset with renewal. Surrender charge structures and guarantee periods may vary by state.
Pacific Life, its affiliates, their distributors, and respective representatives do not provide tax, accounting, or legal advice. Any taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor or attorney.
Pacific Life is a product provider. It is not a fiduciary and therefore does not give advice or make recommendations regarding insurance or investment products.
Fixed annuities are long-term contracts designed for retirement.
Annuity withdrawals are taxable as ordinary income when distributed and may be subject to a 10% additional tax if withdrawn before age 59½. For nonqualified contracts, an additional 3.8% federal tax may apply on net investment income. Withdrawals will reduce the contract value.
No guaranteed rate will be less than the minimum guaranteed rate stated in the contract. Pacific Life determines, at its discretion, annual interest rates in excess of the stated minimum guarantee in the contract.
The Guaranteed Minimum Surrender Value (GMSV) applies to contracts upon full surrender, annuitization, or death. The GMSV is equal to 87.5% of purchase payments (minus any withdrawals), accumulated at a fixed interest rate.
Pacific Harbor Guaranteed Rate is named “Individual Limited Premium Deferred Annuity Contract with Market Value Adjustment Feature” in the contract.
Pacific Life refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. Insurance products are issued by Pacific Life Insurance Company in all states except New York and in New York by Pacific Life & Annuity Company. Product availability and features may vary by state. Each insurance company is solely responsible for the financial obligations accruing under the products it issues. Annuity products are not FDIC insured, may lose value, and are not guaranteed by any bank.
Fixed annuities issued by Pacific Life (Newport Beach, CA) are available through licensed, independent third parties.