A multi-year guaranteed annuity, known as a MYGA, offers you a solid path to grow your future with confidence. This type of annuity is known for its stable growth rate, and compared to other financial choices, a MYGA offers a fixed rate over a set period.
With a MYGA, you’re on a clear path to your financial targets, free from market volatility and with predictable growth for better planning. But how does a MYGA help you accumulate wealth?
Think of it as a steady journey towards your financial goals without the ups and downs of the market. A MYGA works well for those who want a clear view of their financial growth. The fixed rate allows you to predict your planning at the end of its term.
The Structure of MYGAs
The MYGAs’ structure is straightforward. You start with a lump sum, which then grows at a fixed rate over a chosen period. The fixed rate means your money grows the same way each year, free from market changes.
But it’s the steady growth MYGAs offer that is the real advantage, especially when you’re looking to build your funds without worrying about the ups and downs of the market.
Another big plus is that the growth is tax-deferred. With MYGAs, you don’t pay taxes on the growth until you withdraw the money.
This allows your funds to grow faster, as they are not reduced by yearly taxes. For those planning ahead, this can mean more money available when you need it, notably, during retirement.
MYGAs vs. Certificates of Deposit (CDs)
There are some clear differences between MYGAs and CDs. Both are started with a lump sum and offer a fixed growth rate, but MYGAs offer the added benefit of being tax-deferred.
This means with a MYGA, your money grows without the yearly tax hit that CDs face. In time, this can lead to more growth compared to a CD.
Similarly to MYGAs, CDs offer stability but lack the tax-deferred growth that MYGAs offer. For those planning for the future, MYGAs offer a more effective growth path. The tax-deferred nature of MYGAs can result in more funds available in the long term.
Flexibility for High-Income Earners
For those earning a comfortable income, a MYGA can be a smart move. It lets you pour in as much cash as you want, free from the contribution limits that tie down other retirement options.
Unlike traditional retirement accounts, MYGAs do not limit how much you can contribute based on your income. High-income individuals benefit from MYGAs’ flexibility, which lets them ramp up their money’s growth without bumping into income caps.
For those earning more, funding MYGAs can significantly amplify their financial success. High-income individuals often find the limits in other retirement options frustrating.
IRAs, for example, have strict contribution limits, but with a MYGA, there are no such caps. MYGAs are ideal for those who want to improve their finances without worrying about their annual growth.
Estate Planning and MYGAs
A MYGA is also a beneficial choice for estate planning. Passing down your wealth through a MYGA is straightforward, allowing your heirs to access their inheritance without complication.
While transferring assets to heirs from a 401(k) or IRA can be intricate and potentially trigger taxes if mishandled, a MYGA offers a straightforward path.
For a spouse, the transition is seamless, allowing the continuation of the annuity’s steady growth. Other heirs may need to withdraw the funds, but the process remains less complex compared to other retirement accounts.
This simplicity brings comfort, knowing your loved ones face fewer obstacles with a MYGA during a challenging time.
Leveraging MYGAs With Pillar Life
Pillar Life Insurance offers a simple way to manage MYGAs. Our online self-service portal is easy to use. You can choose and handle your MYGA without going through agents.
Navigating the MYGA selections online puts you in the driver’s seat, letting you tailor your financial strategy without outside pressure.
You can review MYGA options at your pace, ensuring your choice aligns perfectly with your financial strategy, comparing rates and terms, all from the comfort of your home.
This makes the process of choosing the right MYGA for your needs straightforward and stress-free. At Pillar Life, we believe your journey to securing a MYGA should be hassle-free.
However, we can also assist you in finding the perfect MYGA to meet your financial targets. And with Pillar Life’s user-friendly online platform, securing and managing a MYGA is easier than ever.