SecureFore II 3-Year (Wells Fargo) review

It depends on access and timeline. For a Wells Fargo client in an approved state who genuinely will not need more than the 10% free-withdrawal during the three years, this is a solid, no-fee fixed annuity with a competitive rate and the kind of simplicity that makes the outcome predictable. The MVA makes it less clean than the non-MVA version of the earlier SecureFore series if an early exit becomes necessary, which is the main structural caution. For buyers outside the Wells Fargo distribution channel or in non-approved states, it is simply not available regardless of the rate.

The rational case is certainty. A MYGA buyer in their 60s or early 70s who wants to park a lump sum in something predictable — ideally outperforming a taxable CD on an after-tax basis through tax deferral — will find the mechanics here familiar and the commitment manageable. The three-year window is short enough that most buyers can plan around it without disrupting a broader retirement income strategy. The Chronic and Critical Illness Waiver provides an additional reason to commit: if health concerns make a 3-year lock-in feel risky, the waiver reduces the downside of a health-related early exit to just the RMD and free-withdrawal thresholds.

I think SecureFore II 3-Year (Wells Fargo) is best for a pre-retiree or early retiree in their late 50s to mid-70s who works with a Wells Fargo advisor, has a defined lump sum they genuinely will not need for three years, and wants a fixed guaranteed return without any market exposure or annuity complexity. Qualified money in an IRA rollover is a natural fit. It is not a match for anyone who might need more than 10% of the contract value before year three, for buyers in states outside the approved list, or for anyone actively shopping the open MYGA market for the best available rate across carriers.

A MYGA is an insurance contract with one job: credit a guaranteed fixed rate on your premium for the contract term. There are no indices, no performance-based credits, no participation rates — just a rate locked at issue that does not change. The SecureFore II 3-Year version wraps that simple guarantee in an insurance contract from Forethought Life Insurance Company (a Global Atlantic subsidiary), which means the guarantee is only as good as the carrier's financial strength. Growth inside the contract is tax-deferred until distribution, which is the primary advantage over a taxable CD with the same nominal rate. What you are not buying here is liquidity — the surrender charges during the three-year term are real, and the MVA adds additional variability to early-exit costs that a simpler MYGA would not have.

At contract issue, Forethought declares a fixed interest rate that applies for the full three-year term. The brochure references a rate range of 3.90% to 4.10% depending on premium tier — 3.90% at the standard tier and 4.10% at higher premium amounts. That rate does not reset annually, does not fluctuate with market conditions, and is not subject to a cap or spread calculation during the term. Your account value grows by the declared rate each year, compounding on the prior balance. At the end of year three, surrender charges drop to zero and you can take the full accumulated value, roll to a new contract, or begin income distributions without any penalty. The declared rate is the product — everything else supports it.

The Chronic and Critical Illness Waiver is the most meaningful secondary feature for a product in this age-eligibility range. After the first contract anniversary, if you or a qualifying individual meets the chronic illness or critical illness criteria defined in the rider, withdrawal charges are waived on amounts taken from the contract. For a buyer in their late 60s or 70s committing money for three years, the risk of a health event requiring access to funds during the surrender period is real. The waiver does not eliminate the MVA in all circumstances, so the mechanics of any illness-triggered withdrawal should be confirmed with the issuing carrier, but the charge waiver itself removes the stated surrender penalty and provides meaningful downside protection without adding a rider fee.

You are trading three years of flexibility — above the 10% annual free withdrawal — for a locked rate. The surrender schedule runs 8% in year one, 8% in year two, 7% in year three, then drops to zero. Those charges are steep enough that accessing a large portion early meaningfully erodes the effective yield. Unlike the original SecureFore series, this contract applies a Market Value Adjustment — or MVA — on withdrawals subject to surrender charges. The MVA adjusts the surrender value based on prevailing interest rates at the time of the withdrawal: if rates have risen since issue, the MVA works against you and increases the effective exit cost; if rates have fallen, it may reduce it. In a rising-rate environment, the combined effect of the stated charge and a negative MVA can be materially worse than the schedule alone suggests.

The 10% free-withdrawal provision covers most routine needs, including interest harvesting and modest income draws. RMDs can also be taken without triggering surrender charges, which makes this a workable structure for qualified accounts. The full account value passes to beneficiaries at death without surrender charges or MVA, which removes the timing risk from an estate perspective.

There are no base contract fees, no annual administrative charges, and no rider fees unless an optional rider is elected. The only explicit cost structure during the surrender period is the stated charge schedule plus the MVA on amounts that exceed the free-withdrawal limit. Because there is no income rider and no indexed crediting, there is nothing to unpack in terms of fee-for-feature tradeoffs — the product is intentionally simple. The tradeoffs are structural: you exchange liquidity for rate certainty, the surrender schedule enforces that exchange, and the MVA adds interest-rate risk to the cost of early exit that many shorter-duration MYGAs do not carry.

Legal Entity: Forethought Life Insurance Company

Parent: Global Atlantic Financial Group