What is a MYGA?

A MYGA functions similarly to a Certificate of Deposit (CD) but with tax-deferred growth. When you purchase a MYGA, the insurance company guarantees a fixed interest rate for a set number of years, usually ranging from 3 to 10 years. At the end of the term, you can either renew, withdraw your funds, or transfer them to another financial product.

Benefits of MYGA Fixed Annuities

Guaranteed Interest Rate: Enjoy a predictable, fixed return on your investment without market fluctuations.
Tax-Deferred Growth: Unlike CDs, interest earned in a MYGA is not taxed until you withdraw funds, allowing for potential compound growth.
Flexible Term Options: Choose from different term lengths to match your financial goals.
Principal Protection: Your initial investment is not subject to market risk, ensuring a secure retirement income strategy.
Payout Flexibility: At maturity, you can withdraw your money, reinvest in another MYGA, or convert to an income annuity.

MYGA vs. Other Annuities

MYGA vs. Fixed Indexed Annuities (FIAs)

MYGA: Offers a fixed, guaranteed interest rate.
FIA: Tied to market index performance, offering higher potential returns but with interest rate variability.

MYGA vs. Variable Annuities

MYGA: No market exposure; provides steady returns.
Variable Annuity: Returns fluctuate based on investment performance, offering growth potential but with risk.

MYGA vs. Immediate Annuities

MYGA: Accumulates value over time and offers flexibility upon maturity.
Immediate Annuity: Converts a lump sum into a guaranteed lifetime income stream starting immediately.

Who Should Consider a MYGA?

Seek a safe, tax-advantaged investment option.
Want predictable returns without market volatility.
Are looking for a CD alternative with better tax efficiency.
Plan to preserve principal while earning a stable interest rate.

Making the Right Choice

Choosing the right annuity depends on your financial goals, risk tolerance, and retirement strategy. A MYGA can be an excellent addition to a diversified retirement portfolio, offering security and consistent growth.

Interested in learning more? Contact us today to explore how a MYGA fixed annuity can benefit your retirement planning!