Post New

I will quickly admit I don't like dealing with insurance companies but for fixed income, it seems like multi-year guaranteed annuities can be a solid solution. Like anything I do, I wouldn't go all in since they are only state insured and only up to $200,000 or $300,000 in most states but I can get a 3 yr 5.45% rate from an A- rated company. With rates likely to drop rather than rise over the next few years it seems like a solid investment.

Currently I have two MYGAs that mature in 3 and 5 years. Personally I wouldn't go past 5 yrs and prefer 3 yrs. I've been mapping out my income from now until I'm 70 and using individual nominal bonds as well as inflation (TIPs) bonds. While throwing everything in the market usually makes you more money over the long term, it obviously comes with risks, especially in the short term and I don't need those risks in retirement.

Generally my investing is about 50/50 fixed income/stocks. Most of the equity money is in index funds (VT, VTI, VXUS, etc.) and a few stocks (BRK, Google and a few others). I also went much heavier on international stocks over a year ago and that has worked out well. As did a smaller investment in gold.

I know some here prefer preferred stocks for income. Personally I don't care for bond funds since I want to know what I'm getting on a year by year basis and bond funds can vary too much based on interest rates.

Anyone else invest in MYGAs?

Rich

I looked into MYGA's in mid-2025 when this person discussed them https://www.youtube.com/@DiamondNestEgg

Finally decided that the downsides were not worth it. They are illiquid without paying a hefty fee. To get the best rates you had to go down in quality of the firm. You get all the interest at the end of the term, dumping a large income into one tax year.

The yield is not that much more than high(ish) quality preferred stocks.
BAC-PB is 5.93% ($1.50/yr)
WFC-PL is 6.15% ($75.00/yr)
Very liquid, although the price can fluctuate.

Current MYGA quotes:
4 yr - 5.15%
3 yr - 5.55%
2 yr - 5.00%
"top-multi-year-guaranteed-annuity-rates-summary"
https://www.annuityadvantage.com/annuity-rates-quo...

Post New

Retirement Investing FAQ

---

Contact Shrewd'm
Contact the developer of these message boards.