Multi-Year Guarantee Annuity Explained (MYGA Explained) | Financial Advisor Explains

Financial Advisor Don Anders explains what a multi-year guarantee annuity is and how multi-year guarantee annuities work. Sometimes multi-year guarantee annuities are called MYGA. A multi-year guarantee annuity works very similarly to a CD and it gives the investor a fixed interest rate over a certain number of years, but there are certain Pros and Cons of MYGA's over CD's and Don Anders gets into those differences in this video.

0:00 Intro
0:17 Rundown on Annuities
0:38 Multi-Year Guarantee Annuity: What is it?
1:16 The Good and Bad of MYGAs
2:23 Con: It's Still an Annuity
3:41 Pro: They Give Free-Outs
4:24 Look Into This Option, Not All Annuities are the Same
4:43 Be Wary of the Maturity Date
5:24 Final Thoughts on MYGAs

#annuity #annuities #myga #donanders #retirementplanning

[bu-eyyj]

If you withdraw the "principal" from non qualified MYGA before turning 59.5, does that trigger IRS, and State penalty? Some insurance companies allow partial withdrawal of the principal with no penalty which would be the free out you mentioned in this video. I would like to know how the IRS and states treat withdrawing the principal from MYGA before you turn 59.5.

[QueensWino]

I have yet to see any advisor or agent discuss what might happen if a client stayed in the MYGA after the guaranteed period ended and did not 1035 out. Would the annuity change to "book value" status in that the crediting rate would potentially change each year? Or might the company extend another multi-year guaranteed rate? I'm guessing most clients do switch out but perhaps not all do. After all, the client would be "out of surrender" if he/she stayed in and would be more liquid than in a new annuity with a fresh CDSC.

[maha]

I'm about to turn 57 and want to keep my modest 401k money safe for retirement and am planning on rolling it into a 7 year annuity to know exactly how much I will have, I'm terrified of losing money in the market. To me it seems like a smart move but everyone is telling me its a bad move and to keep it in my 401k and I can make more. What are your thoughts on this?

[randall]

What are the best companies for 3 year
For monthly income

[randall]

Why can’t anyone answer this simple question
1. Can you take out $ monthly for income. 😮