June 27, 2016 by Brad Gunning

Video Guide to MYGAs


If you have 15 minutes and you’re interested in a MYGA 101 course, you’ve come to the right place.

The above video dives into the following topics regarding MYGAs:

1. What is a MYGA?

To start, the video defines MYGA: a multi-year guaranteed annuity. Specifically, it’s a type of fixed annuity with a guaranteed interest rate for a set period of time.

2. What type of annuity is a MYGA?

The video explores the various categories of annuities, such as accumulation annuities and income annuities. MYGAs, along with variable annuities and indexed annuities, are a type of accumulation annuity. The similarities and differences between these annuities are explained.

3. How does a MYGA work?

A 5-year MYGA with a 3.15% return is used as an example. We see the benefits of true compounding interest and tax deferral as a MYGA account with a $100,000 premium increases in value to over $116,000 over five years.

4. What are the pros and cons of MYGAs?

The video explores the pros and cons of MYGAs. Some of the potential pitfalls of a MYGA are identified, such as surrender charges, market value adjustments, and the age 59 1/2 rule. On the flip side, MYGAs enjoy no market risk, high interest rates, and tax deferral.

5. Who should buy a MYGA?

There’s an inherent time commitment with a MYGA: 3 years, 5 year, 10 years, etc. Be comfortable with that commitment. The video also explains the importance of determining when you intend to use the money in a MYGA and how the answer is important in deciding whether or not a MYGA is right for you.

6. How do you purchase a MYGA?

An annuity is technically an insurance policy. A MYGA should be purchased from a licensed insurance producer, hopefully one specializing in MYGAs. The video explains the importance of shopping around for the best rates and the best rules for your situation.

Free MYGA rate quote


Video Guide to MYGAs
Video Guide to MYGAs

An in-depth look at Multi-Year Guaranteed Annuities (MYGA).

The Standard, MetLife, Principal Financial Group, Genworth, & Lincoln Financial Group