Many of my clients saw last year’s market volatility and asked where they can keep their rainy-day money safe but still earn something on it. In response I wrote an article and recorded a video series on multi-year guarantee annuities, or MYGAs last October.
MYGAs are fixed interest rate annuities offered by some of America’s strongest insurance companies that guarantee an interest rate from two to ten years.
At the time, MYGAs were paying a guaranteed interest rate in the 3% to 4% range in exchange for locking your money up for a short as three years.
Here we are in Spring 2023 and the market is still volatile and clients are again asking for a safe haven for the money they don’t want to put at risk. However, because of actions by the Federal Reserve to combat inflation, guaranteed interest rates are up 20% from just six months ago.
Here is a sample of guaranteed interest rates available today by some of America’s strongest insurance companies for your safe money. The interest rate is guaranteed for the term and credited each year.
I consider six key factors when recommending MYGAs so these interest rates might not be the highest available rates. Click here to watch the Six Factors to Consider when purchasing a MYGA.
Why might MYGAs may be a good choice for you in 2023?
1. Guaranteed returns: With a MYGA, you can lock in a guaranteed rate of return for a set number of years. This means you can count on guaranteed interest rates while growing assets or ensure a steady and predictable income stream during your retirement.
2. Protection from market volatility: MYGAs are not tied to the stock market, so you don't have to worry about market fluctuations affecting your returns.
3. Tax-deferred growth: Earnings on MYGAs are tax-deferred until you start withdrawing funds, allowing your investment to grow without being subject to taxes. You only pay taxes when you withdrawal your money.
4. Flexibility: MYGAs typically offer a variety of contract lengths and payout options, so you can choose the one that best fits your needs.
Overall, MYGAs can be a safe and reliable investment option for those looking for guaranteed returns and protection from market volatility in 2023.
Contact me for a recommendation on which MYGA might be right for you.
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