Guardian Eagle
Multi-Year Guaranteed Annuities (MYGA) MYGAs are a form of tax-deferred annuities that guarantee an interest rate for a fixed period. An indi- vidual can purchase these products by using a single premium. The funds put into these contracts will accrue interest on a tax-deferred basis, meaning taxation doesn’t occur until the owner withdraws the funds. After the guaranteed term ends, some contracts will offer a non-guaranteed interest rate, the option to annuitize, or the choice to transfer the funds to a new annuity. A Great Alternative to Certificates of Deposit Certificates of Deposit (CD) are a commonly used savings vehicle. Similar to deferred annuities, CDs typically guarantee an interest rate for a specific period and provide steady, secure growth. Most will also purchase CDs because they are FDIC insured (up to certain amounts), whereas deferred annu- ities are backed by the claim paying ability of the company issuing the contract. There are two prominent reasons why you should consider MYGAs as an alternative to these certificates: INTEREST RATES: Multi-year guaranteed deferred annuities will usually offer a higher interest rate than CDs, providing more growth for the owner. TAX-DEFERRAL: Owners of CDs normally pay taxes on their earnings each year. Deferred annuity owners do not pay taxes on their earnings unless they withdraw the funds.
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