Multi-Year Guaranteed Annuity (MYGA)

How can one say they "hate annuities" but not CDs? If you like CDs, you should LOVE MYGAs! A MYGA is a CD on steroids in a sense. It has all the characteristics as a CD, but gives you more benefits. Here are the detailed overviews of a MYGA:​

• They have a guaranteed fixed annual interest rate, just like CDs, but they are not FDIC insured. They are however guaranteed by an insurance company, hence why it is sold as an insurance product.

• They traditionally have more competitive rates than CDs. During this historically low interest rate era, this is can be the best alternative to stash your cash safely!

• They are more flexible than CDs and provide a bit of liquidity. You can withdraw an annual 10% of your money penalty free for the duration of the annuity (if you are over 59.5yrs).

• It has better tax advantages--you pay taxes on interest earned after maturity of the annuity; Unlike CDs where you are to pay taxes on interest earned each year. This allows your MYGA to compound and makes you more money overall!

• You can buy multiple MYGAs and various years and create a MYGA ladder (just like a CD or Bond ladder).

MYGAs are great and safe investments for all ages. Want more information? Want to get started on one? CONTACT US!!.