MULTI-YEAR GUARANTEE ANNUITY

Multi-Year Guarantee Annuities (MYGAs) work similar to a bank CD in that they have a specified interest rate and maturity term, however there are a few differences.  Most people think of annuities as income-for-life products, which they can be, however many retirees use annuities as deferred savings vehicles and not for income at all.
MYGAs typically provide higher guaranteed interest rates than other savings vehicles while offering the principal protection that retirees desire.  The claims-paying ability of the insurance company guarantees the contract, so be sure to take the company ratings by A.M. Best into consideration.
MYGA contracts differ primarily in the area of liquidity.  Some contracts allow for up to 10% annual penalty-free withdrawals, others allow interest-only withdrawals and others yet do not permit any withdrawals until the end of the guarantee period.  Your VRTA agent can provide the details and determine individual suitability.
Today's Interest Rates
(as of 09/09/2020)
 
3 year period - 2.40% APR
5 year period - 3.00% Avg-APR
6 year period - 3.07% Avg-APR
 

(rates subject to change without notice, to verify rates: 800.467.5425)

 

(to verify rates: 800.467.5425) Rates offered by American Equity Guarantee Shield (3 yr), Atlantic Coast Life “Safe Haven” 5yr and 6yr. Rates guaranteed by annuity contract. Contact agent for details, suitability, minimum premium, and disclosures. No surrender charge at the end of guarantee term for full withdrawal.

Fixed Indexed Annuities

Fixed Indexed Annuities are likely the most beneficial insurance financial product innovation of the past 25 years.  These products allow for principal protection, but also the ability to participate in the potential growth of a capped market index, such as the S&P 500 index.
The interest growth is linked to a market index, with a cap, however is guaranteed never to be below 0%.  You are not directly invested in a securities portfolio and therefore do not have your principal at risk.
Many of these products allow for the option of an income rider or other benefit rider for a fee, however most indexed annuities that do not include these riders will not incur administration fees.
Common Fixed Indexed Annuity Features
(may vary based on individual contracts)
* Principal protection (0% interest rate floor)
* Market index growth (with caps or spreads)
* Generally no client-facing fees
* Up to 10% annual penalty-free withdrawals
* Surrender charge for specified period if exceed 10%
   withdrawal in a given year
* Use as deferred savings vehicle or for lifetime income
* Contracts vary greatly - your VRTA representative will be happy to discuss current recommendations and determine individual suitability and outside available liquidity.

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