What is a Fixed Annuity?

Multi-year guarantee annuity is a term used to describe a fixed annuity that has an interest rate guarantee for the same period of time as its surrender period. For example, an annuity with a guaranteed interest rate of 5% per year for five years, where there are no surrender penalties after five years. Some offer a higher rate the first year, and a lower, but guaranteed rate, for all subsequent years of the surrender period – e.g. 8.5% first year, with a guaranteed renewal at 4% for years 2-5 for a blended average of 4.88% per year for five years. The key feature is that you know what interest rate you get for the entire surrender period, and for this reason we ONLY recommend multi-year guarantee annuities.
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ANNUITY FYI’S TOP FIXED ANNUITY PICKS

CompanyProduct Name
protectivePro Saver Platinum 15
sslicPersonal Choice Annuity 10
libertyBankers Elite 9
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FROM OUR BLOG

Expert Says Confirmation Bias Makes People Hate Annuities

Psychology and annuities have a much stronger connection than many people realize.  In Stan Haithcock’s recent Marketwatch article, he tries to determine “Why we hate annuities.”  Everyone doesn’t hate annuities, of course,...

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2015’s Annuity Trends: Income Annuities and VAs w/out GLBs

LIMRA Secure Retirement Institute recently performed a lot of research in preparation for the annual Retirement Industry Conference that they co-sponsor.  They found two significant trends in the individual annuity industry.  This information...

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Annuity Choices Aren’t As Simple As They Used To Be

When annuities were first introduced back in Roman times, there was one kind and it was very simple.  The single premium immediate annuity (SPIA) paid you lifetime income after a one time payment to an insurance company.  There are now …

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ADVISOR INSIGHT

“Fixed annuities are Fixed. Unlike other types of annuities such as; variable annuities, fixed indexed annuities or even renewal – rated fixed annuities, Multi Year Guaranteed Annuities (MYGAs) pay a constant predictable rate of interest each year during the selected guaranteed period. The investor can spend the interest as income or allow it reinvest inside the product on a tax deferred basis. If you’re looking for a predictable interest rate with principal protection and CD’s just aren’t paying enough for your tastes, and bonds seem too risky, a traditional fixed MYGA is probably a good consideration.”

Brian Thomas Horn

Brian Thomas Horn, Financial Advisor

Annuity FYI Expert

ARTICLES & GUIDES

Annuity Warning #4: Fixed Annuity Rates

Annuity Warning #4: Fixed Annuity Rates

Typically, an annuity company will give you a particular rate up front on a fixed annuity, and then decrease…

Fixed Tax Deferred Annuities

Fixed Tax Deferred Annuities

Fixed tax deferred annuities are invested primarily in government securities and high-grade corporate bonds…