MYGA Vs. Fixed Annuity: Which Is Better For Me

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

MYGA (Multi-Year Guaranteed Annuities)

Multi-year guaranteed Annuities (MYGA) offer a fixed interest rate for a specified period, typically ranging from 3 to 10 years. This makes them a great option if you seek stability and predictability in your financial planning. MYGAs are particularly appealing if you prefer knowing exactly what return you will get on your investment for the duration of the term. The guaranteed interest rates eliminate the uncertainty often associated with market fluctuations, providing a secure way to grow your savings.

Key Features of MYGA:

  1. Fixed Interest Rates: MYGAs guarantee a fixed rate for the entire term.
  2. Term Options: You can choose from various term lengths, typically between 3 and 10 years.
  3. No Mandatory Annuitization: You are not required to annuitize your MYGA into a stream of income.
  4. Tax-Deferred Growth: Your investment grows tax-deferred until you withdraw it.
Fixed Annuities Vs. Multi-Year Guarantee Annuity

Fixed Annuities

Fixed Annuities are insurance products that provide a guaranteed rate of return. These annuities offer consistent growth of your investment, with interest rates that might adjust periodically based on economic conditions. Fixed Annuities are ideal if you prefer a more traditional approach to secure and stable growth of your retirement savings. Unlike MYGAs, the interest rates in Fixed Annuities can be reset periodically, providing a balance between predictability and flexibility.

Key Features of Fixed Annuities:

  1. Guaranteed Interest Rates: These rates can adjust periodically.
  2. Consistent Growth: Provides stable and predictable growth.
  3. No Mandatory Annuitization: Similar to MYGAs, there’s no requirement to convert into a stream of income.
  4. Tax-Deferred Growth: Your earnings grow tax-deferred.

How We Can Help

At The Annuity Expert, we understand that planning for your financial future can be daunting. Your primary goal is to secure a stable and predictable income stream for retirement, ensuring peace of mind. The core problem we solve is the uncertainty and risk associated with retirement savings.

We recognize the emotional impact of this uncertainty—stress, anxiety, and fear of financial insecurity. With over 15 years of experience as an insurance agency, annuity broker, and retirement planner, we have the expertise to guide you through these challenges.

We believe in finding the best solutions at the lowest costs. We stand for your financial security and stability, offering you the best annuity options tailored to your unique needs. Our commitment is to ensure you have a clear, straightforward path to a secure retirement.

Myga Vs. Fixed Annuities

What We Recommend

Taking the next step towards securing your retirement is straightforward with our expert guidance. Here’s how we can help you achieve your desired financial stability:

Step 1: Free Consultation

  • What Happens: We start with a free consultation to understand your financial goals and retirement plans.
  • Main Benefit: You gain clarity on your options and how MYGA or Fixed Annuities can fit into your strategy.

Step 2: Personalized Plan Development

  • What Happens: We develop a tailored plan that aligns with your goals, choosing the best annuity products for your needs.
  • Main Benefit: You receive a customized strategy that maximizes your financial security.

Step 3: Implementation and Monitoring

  • What Happens: We help you implement the plan and provide ongoing monitoring to ensure it stays on track.
  • Main Benefit: Continuous support and adjustments as needed, ensuring your plan adapts to any changes in your circumstances.

Features and Benefits:

  • Expert Guidance: Personalized advice from experienced professionals.
  • Tailored Solutions: Customized plans that meet your specific needs.
  • Ongoing Support: Continuous monitoring and adjustments for optimal performance.
  • Tax-Deferred Growth: Maximize your investment’s potential with tax-deferred benefits.

We understand common objections, such as concerns about fees, complexity, and trust. We offer transparent fee structures, simplify the process, and have built a reputation for trustworthiness over 15 years.

Failing to secure your retirement plan can lead to financial insecurity, stress, and an inability to enjoy your retirement years.

Working with us means peace of mind, financial stability, and the freedom to enjoy a worry-free retirement. You will experience a sense of security, confidence, and satisfaction knowing your future is well-planned.

Contact us today for free advice or a free quote and take the first step towards a secure and predictable retirement.

Myga Vs. Fixed Annuity

Let Us Help You Choose Between a MYGA and a Fixed Annuity

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Frequently Asked Questions

Can you lose money on a fixed annuity?

You can lose money on a fixed annuity if you withdraw funds early and incur surrender charges. Additionally, inflation can erode purchasing power if the annuity’s interest rate doesn’t outpace inflation. It’s essential to understand terms and conditions.

What is the downside of a MYGA annuity?

The downside of a MYGA (Multi-Year Guaranteed Annuity) is its lack of liquidity. Early withdrawals often incur substantial surrender charges. Additionally, the fixed interest rate might not outpace inflation, potentially eroding the real value of your investment over time.

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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