What You Need to Know About Fixed MYGA Annuities

Posted by

A thumbs up next to a graph showing the steady growth of an investment.The financial world can sometimes feel like a labyrinth, filled with intricate pathways and choices to make at every turn. Making things even more stressful, you’re rarely sure exactly how an investment will pay off or whether it will even pay off at all.

That’s part of what makes Fixed Multi-Year Guaranteed Annuities (MYGA) stand out from other types of investments. Here’s some things you should know about this type of annuity:

Understanding Fixed MYGA Annuities

At its core, a Fixed MYGA Annuity is a contract between you and an insurance company. You provide a lump sum of money, and in return, the insurer guarantees you a fixed interest rate for a specific period. Unlike other financial products that are subject to market volatility, MYGA annuities provide guaranteed returns, ensuring that your money is safe and grows predictably over time.

The Advantages of Opting for MYGA

Stability

One of the standout features of MYGA annuities is their immunity to stock market fluctuations. Your returns are set in stone from the outset, making this a solid choice for a low-risk investment.

Tax Deferral

The interest you earn on your MYGA annuity isn’t taxed until you withdraw the funds. This tax-deferral can potentially lead to larger compound gains over the course of the annuity.

Flexibility

Once your contract term ends, you have multiple options. You can withdraw your money, renew for another term, or even convert your annuity into a stream of guaranteed lifetime income in certain cases.

Things to Keep in Mind

While MYGA annuities offer a plethora of benefits, they might not be the right fit for everyone. It’s essential to be aware of potential surrender charges if you decide to withdraw your money before the end of your term. Additionally, like all financial products, it’s crucial to read and understand all the fine print before committing.

When you’re charting the course of your financial future, knowing your options is invaluable. And if you ever find yourself wondering whether a Fixed MYGA Annuity is right for you, remember that experts like those at William J. O’Brien Insurance Agency are always here to guide you. We can even off a free financial planning consultation. Just give us a call today at (781) 828-2300 to learn more!