Multi-Year Guaranteed Fixed Annuity (MYGA)

xray1010 | Mar 1, 2025 | 10 posts since 2018

I am considering investing in a Multi-Year Guaranteed Fixed Annuity (MYGA) for the first time. I would appreciate any insight or lessons learned from anyone with knowledge or experience with this type of product.

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Answers

choice1 | Mar 1, 2025 | 370 posts since 2023

Suggest you do some reading on annuities...very complex to some. I looked closely a few years ago. NY was reportedly the best regulator for these state regulated instruments and consequently the rates for NY rated insurers are usually lower. I bought a SPIA with a fixed payout a couple of years ago using the new IRA RMD to buy same...I like it, saves on taxable income at time of purchase, etc. Bought from a private college with an interest fixed from the get go...almost 9% payout for joint lives with payments starting immediately. Others may have an interest rate change to your annuity after purchase...if so, make sure you understand how it is calculated...I've seen "real nice" bait and switch tactics! The surrender fee surprises some. Be careful

Hooked | Mar 2, 2025 | 236 posts since 2019

Bogleheads has a long thread on MYGA: https://www.bogleheads.org/forum/viewtopic.php?t=334589
Doctor of Credit has a post on MYGA:
https://www.doctorofcredit.com/pondering-cd-annuities-multi-year-guarantee-annuity-myga/

yogooglethis | Mar 2, 2025 | 32 posts since 2022

i recently bought them because i need the tax deferment.These two companies are direct to consumer so they pay higher interest rates because they don't pay agent commissions.I locked in 6.5 % 5 year and 6.3% 3 year

https://canvasannuity.com/product/future-fund
gainbridge annuity

Ally6770 | Mar 2, 2025 | 4,290 posts since 2010

We only took annuities with my husband's pension and it will be 30 years in July that it was collected on. Mine I took 1/2 of it in a cash out and put in an IRA and have collected on the other half for 17 years in Sept. But those pensions are guaranteed by the gov. I also have a small inherited IRA that I have collected on for 17 years. And the person who owned the IRA collected on it for 23 years before their death.
I would not put savings in an annuity. Annities have high fees. I remember a broker I worked with made $10,000 on one sale.

yogooglethis | Mar 3, 2025 | 32 posts since 2022

MYGA is different commissions are very small compared to FI/indexed annuities.I am an insurance agent and can sell them to myself and maybe earn .5 to 2.5 % depending on length of contract,interest rate and rating of company however i chose to buy direct to consumer from Canvass and Gainbridge for the higher rate even though i don't earn a commission.

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