Annuity Rates Rise to Decade Highs

We all know that everything has be going up; gas, groceries, utilities. High inflation has led to higher interest rates. The average 30 year mortgage rate is now 6.7%. But for conservative savers, rising rates are not all bad news. Multi-Year Guaranteed Annuity (MYGA) rates have climbed to decade highs.

Low rates are pushing more Americans into riskier investments, like high yield bonds, or the stock market. But for retirees, that extra risk may not be a good idea.

For American’s looking for a safe, simple way to invest MYGA’s may be a good option. MYGAs come with guarantees like:

• Guaranteed not to lose money

• Guaranteed fixed rate of return

• Guaranteed term (1 Year, 2 Years, 5 Years, etc)

• Tax deferred growth

MYGA’s have some drawbacks too. Like CD’s if you surrender a MYGA before the end of the term you may incur a penalty, and often one larger than a comparable CD.

The main reason our clients are choosing MYGAs is interest. MYGAs can offer 2-5 times higher rates than CD’s. For those looking for safe, vanilla, guaranteed investments, MYGAs may be a good fit.

Top MYGA Interest Rates

1 Year Guarantee - 1.80%

2 Year Guarantee - 3.80%

3 Year Guarantee - 4.20%

4 Year Guarantee - 4.55%

5 Year Guarantee - 5.00%

6 Year Guarantee - 4.80%

Rates current as of 10-7-2022. Rates may vary by state, age, and premium amount. Premium minimums apply. All policies allow for full withdrawal of principal and interest at maturity.

Contact us for more information and to see if a MYGA might be the right investment for you.