High Interest Plus Guarantees
The Magic of Multi-Year Guaranteed Annuities (MYGAs)
“The best time to plan for retirement was yesterday; the next best time is now.”
Depending on your state of residence, short term (3 years or less) interest rates can be as high as 5.5% tax deferred!
Do you want to invest in your future without being kept up at night worrying about market volatility? If you answer ‘yes,’ then a Multi-Year Guaranteed Annuity (MYGA) might be the perfect retirement planning tool.
MYGAs are a type of fixed annuity that guarantees a specific interest rate for a predetermined period, typically 3-10 years. This key feature sets MYGAs apart from other investment options and provides unique benefits to investors.
Peace of Mind Through Guaranteed Returns
The primary advantage of MYGAs is the guaranteed return. With a MYGA, you will know the amount of money you will receive at the end of your term. This feature lets you accurately plan your retirement income, eliminating any guesswork associated with market-linked investments.
Safeguard Your Principal
MYGAs protect your initial investment or principal amount. Regardless of economic downturns or market fluctuations, your initial investment stays intact. This feature offers invaluable peace of mind, especially for retirees and pre-retirees who prioritize the safety of their capital.
Tax-Deferred Growth
With MYGAs, your interest earnings are taxed once you withdraw them. This allows your investment to grow more quickly than it would in a taxable account. And since most people fall into a lower tax bracket post-retirement, you may pay less tax on your interest earnings.
Flexibility
MYGAs allow you to choose the term that best aligns with your financial goals. Whether you want your money to grow for three years or ten, MYGAs will enable you to decide. Moreover, many MYGAs offer withdrawal provisions where you may withdraw up to 10% of your account value annually without penalty.
Stability and Security
MYGAs are not linked to the stock market, providing insulation from market stability. They offer a stable, secure way to grow your savings. Plus, MYGAs are backed by the financial strength of the insurance company that issues them and are typically covered by state guaranty associations.
Take the Next Step
In the vast landscape of retirement planning, MYGAs stand as a beacon of stability and growth. If you’re a retiree or pre-retiree seeking to fortify your financial future, considering a MYGA might be a game-changing decision.
However, it’s essential to remember that MYGAs, like any financial product, should be tailored to your unique needs and circumstances. To unlock their full potential, professional advice is invaluable.
- Multi-Year Guaranteed Annuities (MYGAs) are a secure investment option, providing guaranteed returns, tax-deferral, flexibility, and safety, ideal for retirees and pre-retirees seeking predictable income and financial stability.
- MYGAs may offer a steady, reliable income stream during retirement, complementing other savings and reducing financial stress by providing protection against market volatility.
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