Multi-Year Guaranteed Annuities (MYGAs) For many savers, protecting principal while earning a competitive guaranteed rate of return is a top priority. Multi-Year Guaranteed Annuities, commonly called MYGAs, have become increasingly popular because they combine predictable growth with the financial strength of an insurance company. What Is a MYGA? A Multi-Year Guaranteed Annuity is a type of fixed annuity that guarantees a specific interest rate for a set period, typically ranging from three to ten years. Think of a MYGA as a long-term commitment to a guaranteed interest rate. Once issued, your rate remains locked in for the duration of the guarantee period. How MYGAs Work When you purchase a MYGA, you deposit funds into the annuity contract. The insurance company agrees to: • Protect your principal • Credit a guaranteed interest rate • Maintain that rate for the selected period At the end of the guarantee period, you may have options to renew, transfer, begin income payments, or surrender the contract. Advantages of MYGAs Guaranteed Interest Rates You know exactly what rate your money will earn throughout the guarantee period. Principal Protection Your account value does not decline because of stock market losses. Tax-Deferred Growth Interest grows tax-deferred until distributions are taken. Predictability MYGAs remove much of the uncertainty associated with fluctuating market performance. Who May Benefit? MYGAs often appeal to: • Retirees • Conservative investors • Individuals seeking alternatives to CDs • Those protecting proceeds from inheritance or property sales • Individuals creating a retirement income strategy Important Considerations While MYGAs offer stability, they should be viewed as longer-term solutions rather than liquid savings accounts. Understanding surrender periods and withdrawal provisions is important before purchasing. Conclusion For individuals seeking predictable growth without market exposure, MYGAs can provide an effective balance of safety, certainty, and tax-deferred accumulation as part of a broader retirement strategy.