Annuity Payout Rates Are on the Move
May 31, 2022 by David Blanchett and Michael Finke
Fixed rate annuities, also called multi-year guaranteed annuities (MYGAs), are like CDs offered by insurance companies that are a surprisingly appealing fixed income investment alternative. MYGAs provide guaranteed returns similar to corporate bond yields (which are not the same as corporate bond returns).
Assets are protected by state guaranty funds, and gains are taxed only when the annuity is cashed in, providing a net tax benefit for near-retirees who expect their income tax rate to fall.