Looking for additional
retirement savings options?
A MYGA could be a good solution for finding a higher interest rate on some of your assets to help better meet your expenses in the future. In some ways, a MYGA functions like a bank certificate of deposit, or bank CD, in that you are guaranteed an interest rate for a specific period of time. However, there are also a number of differences. MYGAs are a type of insurance product. They are long term contracts and they can be used to generate a guaranteed income that cannot be outlived. MYGAs can also offer a competitive interest rate for a set period of years. If you purchase a MYGA, the carrier will typically pay you interest on your single premium payment each year for the guarantee period. You can usually withdraw the interest each year. Our company offers versions with and without this feature.
Early withdrawal of the initial premium will typically be subject to a penalty. This penalty decreases each year. The period of time that funds are subject to a surrender charge typically matches the guarantee period. It is recommend that you have sufficient liquid funds available during this time period.
Many carriers also include a market value adjustment, or MVA. In that case, you would assume the interest-rate risk if you withdraw early, which means the amount you receive may be higher or lower than what you requested, based on the adjustment. This feature can allow carriers to offer a higher rate of return for the guarantee period. At the end of the guarantee period, you can either withdraw the entire account value or allow it to automatically renew again for another guarantee period of the same length or select a different length.
Want to learn more about the MYGA options Phoenix offers?
We currently offer guarantee periods that have annual rates between 3.25% and 3.55%.
Frequently Asked Questions
Rates Change Quickly
The question isn’t at what age I want to retire, it’s at what income.
Make your money
last longer in retirement
Retirement is wonderful if you have two essentials—much to live on and much to live for.
Understanding an Interest Rate Ladder
Cessation of work is not a cessation of expenses.
How People Build Interest Rate Ladders
What do people mean when they discuss "laddering CDs" or "laddering fixed interest products"? They are usually referring to a strategy that people will use to maximize predictable interest income for shorter-term assets but that will still allow some liquidity. A "ladder" typically refers to the purchase of a number of interest-bearing products, like bank CDs or MYGAs of varying durations and interest rates. Generally, products with longer durations pay higher interest rates, but reduce liquidity for the owner. By laddering fixed interest financial vehicles, people can increase their interest income on savings, protect against interest rate volatility, and still build in a measure of liquidity for your money in case of emergency.
The following is for informational purposes only and is not intended to provide any specific financial advice.
Carefully review any financial products before making a purchasing decision.
What type of interest-generating products do we offer?
Often when you think you’re at the end of something,
you’re at the beginning of something else.
When Should You Consider a MYGA?
Do you want to talk with us
to see if a MYGA would work for you?