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 guaranteed period. You can usually withdraw the interest each year.
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 guaranteed period. At the end of the guaranteed period, you can either withdraw the entire account value or allow it to automatically renew again for another guaranteed period of the same length.
Want to discuss the MYGA options Phoenix offers?
We currently offer guarantee periods that have annual rates between 3.15% and 3.50%*