Multi-Year Guaranteed Annuity – How to Choose the Right MYGA
June 21, 2023 | Gabe Taylor
An annuity can provide a reliable, steady income stream and has numerous financial benefits compared to other investment options.
What is a Multi-Year Guaranteed Annuity (MYGA)?
A multi-year guaranteed annuity (MYGA) is a fixed annuity that provides a guaranteed interest rate for a specific duration chosen by the owner, such as 5% for five years. One key advantage of a MYGA is that the interest earned compounds on a daily basis, meaning accelerated growth potential. Additionally, MYGAs offer benefits such as access to funds and tax-deferred status. This means you can access your funds when needed, and the growth on your money is not taxed until you make withdrawals. MYGAs provide a combination of security, growth potential, and financial flexibility.
Related Read: What is An Annuity?
How to Choose?
Choosing a multi-year guaranteed annuity (MYGA) can be a great financial move, particularly for individuals looking for income stability in their retirement planning. However, it’s important to comprehend what these benefits are and how they will work in your situation.
Your Financial Goals
The first step in selecting an annuity is identifying your financial goals. What is it that you want this money to do? Are you looking for a stable source of income during retirement? Are you primarily looking to grow your savings in a safe and guaranteed manner? Understanding your priorities will help determine whether a MYGA is a suitable product for you.
Read More: Mistakes to Avoid When Buying an Annuity
Contract Terms
The terms outlined in your annuity contract play a crucial role and include important details such as the interest rate, contract length, and withdrawal stipulations. When selecting a multi-year guaranteed annuity (MYGA), it’s important to choose a contract length that aligns with your financial goals. If you anticipate needing access to your funds within a few years, a shorter contract period may be more suitable than a longer one. Additionally, MYGAs typically do not involve any associated fees, meaning more money in your pocket.
Consult with an Advisor
Navigating these annuities can be overwhelming, and it is crucial to make well-informed decisions that shape your financial future. Seeking guidance from a trusted insurance provider can help you in identifying your financial goals, evaluating available options, and ensuring that an annuity is suitable for your needs. Opting to purchase an annuity can offer significant advantages, but it is important to invest time in understanding its benefits and determining its suitability for your circumstances.
At Twin City Underwriters, we recognize the importance of providing personalized attention to our clients’ unique situations and requirements. That’s why we dedicate ourselves to comprehending your financial goals. Reach out to us to arrange an appointment with one of our knowledgeable insurance agents.
Are you ready to have a meaningful discussion about your financial needs? Call or email TCU today to set up a free, no-obligation appointment with one of our dedicated agents.
Call Twin City Underwriters to learn more: 651-488-0172 or 800-507-6778.
