How to find the best Multi-Year Guarantee Annuity (MYGA) fixed rates
The Annuity Man
Multi-Year Guarantee Annuities (MYGAs) are the annuity industry's version of a CD (Certificate of Deposit). You receive a contractually guaranteed interest rate every year for a specific period of time that you choose. There's no moving parts, no annual fees, and no market attachments. Your principal is fully protected from any downside.
MYGAs are one of the 5 primary product types that fully protect your principal, and can truly be classified as a safe money strategy. Those 5 types are U.S. Treasuries, AAA/AAA Insured Municipal Bonds, Certificates of Deposit (CDs), Money Market Funds, and Fixed Annuities (like MYGAs). That's pretty much it from a safety standpoint.
Multi-Year Guarantee Annuities (MYGAs) are primarily dependent on current interest rates, and more specifically, the United States 10 Year Treasury Note. That rate is the "bogey" for the annuity industry. MYGAs can currently be purchased in as short as 2 years in length, and with durations as long as 10 or more years.
Laddering MYGAs is an efficient way to "not time" interest rates, and have money maturing over time in order to hopefully lock in higher contractually guaranteed rates. For example, a current MYGA ladder might be a 3 year, 4 year, and a 5 year policy. Every year starting in year 3, money is maturing and can be rolled/transferred to another MYGA.
This transfer is a non-taxable event, and interest from a MYGA (in a non-IRA account) grows tax-deferred. This tax-deferred growth feature is the primary difference between a MYGA and a CD.
Contact Stan The Annuity Man to get quotes on all annuity types for your specific situation, and to see a live feed of the best MYGA fixed rates approved in your state of residence.