If you like CD’s, you will love MYGA’s. A multi-year guaranteed annuity (MYGA) is issued by an insurance company. It is designed to fit the same basic needs as a CD, however, MYGA’s provide additional benefits such as:
- Tax Advantages
- Liquity
- Higher fixed interest rates than the equivalent CD
Multi year guaranteed annuities are great for some people but not for everyone. Are MYGA’s good for you?
| Yes You Should Consider a MYGA |
No MYGA Is Not Your Best Option |
| You want a guaranteed rate of return and protection of your principal. | You want stock market returns and are not risk averse. |
| You will be 59 1/2 before you withdraw any funds. | You are much younger than 59 1/2. |
| You are investing money for retirement or planning to pass funds to your heirs. You only need a small amount amount of liquidity. | You may need access to a large portion of these funds soon. |
| Your timeline is at least three years. | You may want to repurpose these funds in less than three years. |
| You have already maxed out your IRA or 401K contributions. | You can still make additional contributions to your IRA or 401K. |
LET’S COMPARE MYGA’S TO CD’S
MYGA’s are issued by insurance companies and are insured by the claims paying ability of that insurance company.
CD’s are issues by banks and are FDIC insured.
In a MYGA, you pay no taxes until you withdraw your funds. Your money grows tax deferred. Your interest is compounded.
In a CD, you pay taxes on the interest earned and lose the compounding effect.
IF YOU ARE INTERESTED IN LEARNING MORE ABOUT MYGA’S, PLEASE CALL US!
