Fixed annuities are a type of insurance contract. They offer a unique blend of safety, growth potential, tax advantages and, if desired, guaranteed lifetime income. The premium earns interest based on the insurance company’s earnings or the positive performance of a market index. They have no downside market risk because they do not directly participate in any market. The increasing value within the annuity is tax-deferred, which means that you do not pay taxes on the accumulated growth until you take receipt of it from the insurance company, either in a lump sum or as future income.
Multi-Year Guaranteed Annuities (MYGAs), sometimes referred to as “CD-type annuities”, are very popular today because they share some of the benefits of certificates of deposit, such as fixed time horizon and a guaranteed interest rate. The online search tool (below) will allow you to determine the current MYGA products and rates available in your state of residence. If you’d like to discuss how MYGAs or other fixed annuities fit into your financial growth and retirement strategy, click on “learn more” after your search and complete the “contact us” form or email us at firstname.lastname@example.org.