Multi-Year Guaranteed Annuity (MYGA) Rates

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Multi-Year Guaranteed Annuity (MYGA) Rates

The following table offers the best MYGA rates sorted from the highest MYGA annuity rate to the lowest.

What Are MYGAs?

Multi-Year Guaranteed Annuities (MYGAs) are fixed annuities that guarantee a specific interest rate for a set period, typically three to ten years. MYGAs offer a stable and predictable return, making them an attractive option for conservative investors looking to secure their retirement savings.

Key Features of MYGAs

  • Guaranteed Interest Rates: MYGAs provide a fixed interest rate for the entire term of the annuity, ensuring a predictable return on your investment.
  • Tax-Deferred Growth: Earnings from a MYGA grow tax-deferred until you withdraw the funds, allowing your investment to compound more effectively.
  • No Market Risk: MYGAs are insulated from market volatility, providing peace of mind to those wary of stock market fluctuations.
  • Flexible Terms: MYGAs come with various term lengths, allowing you to choose the duration that best fits your financial plans.
  • Principal Protection: Your initial investment is safeguarded, ensuring that your principal amount remains intact.

Benefits of MYGAs

  • Predictable Returns: With a guaranteed interest rate, MYGAs provide a steady income stream, which simplifies financial planning.
  • Safety and Security: Backed by the insurance company’s financial strength, MYGAs offer a reliable and secure investment option.
  • Tax Advantages: The tax-deferred growth of MYGAs is particularly beneficial for those in higher tax brackets, enabling more efficient wealth accumulation.

Considerations Before Investing

  • Surrender Charges: Early withdrawals from a MYGA may incur surrender charges, which can affect your overall return.
  • Liquidity: MYGAs are less liquid compared to other investments, so it’s important to have other sources of funds for emergencies.
  • Interest Rate Risk: If market interest rates rise during your term, the fixed rate of your MYGA may seem less attractive compared to new investment opportunities.

How We Can Help

At The Annuity Expert, we understand the importance of securing a stable and predictable income for your retirement. As an insurance agency, annuity broker, and retirement planner with 15 years of experience, we have the expertise to help you navigate the complexities of MYGAs and find the best solutions at the lowest costs.

The Core Problem We Solve

The main problem we address is the need for a secure and predictable income stream in retirement without the risk of market volatility. Many retirees face uncertainty about their financial future, leading to anxiety and stress.

Symptoms and Emotional Impact

  • Unpredictable Income: Fluctuations in the stock market can create anxiety about having enough money to sustain your lifestyle.
  • Fear of Loss: Concerns about losing your principal investment can lead to sleepless nights and constant worry.
  • Tax Burden: Paying taxes on your investment earnings can erode your returns, leaving you with less money than anticipated.

By understanding these symptoms and their emotional toll, we earn your trust and respect, demonstrating our commitment to finding the best financial solutions for your needs.

Multi-Year Guaranteed Annuities

What We Recommend

Step 1: Initial Consultation

  • First Step: Contact us for a free initial consultation.
  • What Happens: We will assess your financial situation, goals, and concerns.
  • Main Benefit: You get personalized advice tailored to your unique circumstances.

Step 2: Customized Plan Development

  • Next Step: We develop a customized MYGA plan for you.
  • What Happens: We analyze various MYGA options, comparing rates and terms to find the best fit.
  • Main Benefit: You receive a detailed plan that maximizes your returns while minimizing risk.

Step 3: Implementation and Monitoring

  • Final Step: We help you implement the plan and provide ongoing monitoring.
  • What Happens: We assist with the paperwork and monitor your MYGA to ensure it continues to meet your needs.
  • Main Benefit: You enjoy peace of mind knowing your retirement income is secure and growing.

Features and Benefits

  • Personalized Service: Tailored financial advice and solutions to meet your specific needs.
    • Benefit: Ensures your investment strategy aligns with your retirement goals.
  • Expert Analysis: Comprehensive evaluation of MYGA options to find the best rates and terms.
    • Benefit: Maximizes your returns while minimizing risks.
  • Ongoing Support: Continuous monitoring and adjustment of your plan as needed.
    • Benefit: Keeps your retirement strategy on track and adaptable to changing circumstances.

Addressing Common Objections

  • Objection: “I’m worried about surrender charges.”
    • Argument: We ensure you understand all terms and help you choose a plan with minimal penalties.
  • Objection: “What if interest rates rise?”
    • Argument: We offer strategies to mitigate interest rate risk, ensuring you remain confident in your investment.
  • Objection: “I need more liquidity.”
    • Argument: We help you balance liquidity needs with secure investments, creating a diversified financial plan.

Not working with us means risking an unstable financial future, with potential loss of principal, higher taxes, and insufficient retirement income. By choosing The Annuity Expert, you secure a reliable income stream, protect your investment, and achieve financial peace of mind.

Experience the security and stability of a well-planned retirement. Contact us today for free advice or a free quote and take the first step towards a worry-free retirement.

Multi-Year Guaranteed Annuity Rates

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Questions From Our Readers

What is a multi-year guaranteed annuity?

A multi-year guaranteed annuity (MYGA) is a fixed annuity that provides a guaranteed rate of return for a specific period, ranging from three to ten years, offered by insurance companies. It offers fixed rates of return, tax-deferred growth, and principal protection, making it an attractive option for those seeking financial stability in retirement.

What are the fees on a MYGA?

Multi-year guaranteed annuities (MYGAs) typically do not have upfront fees or charges. However, the insurance company may deduct surrender charges if you withdraw funds before the end of the investment period.

What is the downside of MYGA?

The downside of a multi-year guaranteed annuity (MYGA) is its limited liquidity, as there are penalties for withdrawing funds before the end of the investment period. Additionally, MYGAs offer fixed rates of return, which may be lower than other investment options, such as stocks or mutual funds. This means that investors may miss out on potential gains that they could have earned by investing in other options.

Is the interest rate on a MYGA, a fixed guaranteed rate per year?

Yes, the interest rate on a Multi-Year Guaranteed Annuity (MYGA) is a fixed, guaranteed rate per year. This rate is set at the contract’s inception and remains constant for the duration of the guarantee period, offering predictable returns.

What’s a good rate for a 5-year MYGA?

A good rate for a 5-year MYGA in June 2024 would be between 5.00% and 5.25%. It’s also important to consider the creditworthiness and financial strength of the insurance company offering the annuity. Ideally, look for a company rated A- or better by major rating agencies, as this indicates a strong ability to meet financial commitments and pay out annuities. These ratings provide a sense of security about the stability of the company you are investing with.

Are you allowed to remove all your principal and interest from your Multi-Year Guaranteed Annuity (MYGA) after the guaranteed period with no penalties and no further liabilities, and are there any fees involved?

Yes, you can withdraw all your principal and interest after the guaranteed period without facing any penalties. As for fees, MYGAs usually don’t have annual fees, but it’s essential to review your contract or check with the issuing company for any potential fees upon withdrawal after the term ends.

If your Multi-Year Guaranteed Annuity (MYGA) is expiring, what is the latest you can start the application process to transfer it to another annuity without automatically renewing it?

Generally, starting the application process to transfer your MYGA at least 30 days before its expiration date is advisable.

What is the minimum investment required for a Multi-Year Guaranteed Annuity (MYGA) in an Individual Retirement Account (IRA)?

The minimum investment typically required for a MYGA within an IRA is $1,000. This amount can vary depending on the specific financial institution or the terms of the annuity product, but $1,000 is a common minimum threshold for starting such an investment.

Do MYGAs offer bonuses?

They do not. A few different products offer an enhanced interest credit if certain things happen but there is nothing that is guaranteed.

What is the oldest age you can buy a MYGA. I am 86.

Typically you can get one up to and including age 100 for both Qualified and Non Qualified funds. However, insurance companies typically limit these to 5 years or less.

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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