Multi Year Guaranteed Annuities

Comrade Financial Group offers a variety of Multi Year Guaranteed Annuities (MYGA)

Several carriers have this product from 3-10 years. Similar if not the same as a Fixed Annuity but some carriers have decided on the moniker of MYGA. These are also known as a CD Type Annuity.

A MYGA is an annuity issued with a guaranteed interest rate period which is equal to the length of time that surrender charges last. These are used as alternatives to Bank CD’s due to very very low CD interest rate environment. Laddering of MYGA’s is also a strategy often similar with Laddering of CD’s when the rates where more favorable. Below is a simple chart of rates and surrender charges similar to a cancellation charge of a long term CD.

A MYGA as show above has an Interest Rate Guarantee Period of 5 Years, the guaranteed interest rate for each year is 5.00%, and is guaranteed not to change for the length of the contract.

Withdrawal Provision is a feature of almost all MYGA’s. This provision allows you to withdraw a percentage of your account value or your initial premium each policy year. For example if this MYGA had a 10% Free Withdrawal Provision at the end of each year you could withdraw up to 10% of your account value. For example: any money withdrawn in the third year over the 10% Free Withdrawal Provision would be subject to a 3.00% penalty.

Withdrawal of any funds prior to age of 59 1/2 are subject to an IRS Penalty of 10% of the funds withdrawn. This is in addition to any penalties incurred as part of the annuity contract. Once the contract matures, you can easily do a Rollover to another MYGA or Fixed Annuity or even an Immediate Annuity.

If you are interested in a MYGA Multi Year Guaranteed Annuity, then click on the form and we would be happy to help you earn fixed guaranteed interest on your investment.