Begin with the purpose of the money
Before looking at a rate, describe what the money is meant to do and when you might need it. A fixed annuity is an insurance contract; it should be evaluated in that context. A multiyear guaranteed annuity, often called a MYGA, is a fixed-annuity structure with a specified guaranteed-rate period. The contract controls the details.
Read the withdrawal rules
Ask about surrender periods, permitted withdrawals, and other adjustments or charges. The guaranteed-rate period and the period when withdrawals face charges deserve separate attention. Do not treat a stated rate as an explanation of the amount you would receive after an early withdrawal.
Compare more than a headline
Compare costs, access, the issuer’s obligations, and tax treatment with other approaches under consideration. Tax deferral is not tax-free income. Ask an appropriate tax professional about your situation, including how the account holding the annuity affects the discussion. This site does not publish current quotes or select a carrier.
A question to take with you
Compare the full terms on the same time horizon, and keep needed reserves outside a long-term commitment.
Start my Retirement Income SnapshotFurther reading
Educational information only; not a personalized recommendation or an offer of insurance. Guarantees depend on the issuing insurer’s claims-paying ability. Annuities are not bank deposits or FDIC insured. Contract terms, costs, surrender charges, and availability vary. Read the disclosures.
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