Why Investors Should Consider Fixed Annuities in Their Portfolios
Written by Jasmin Sethi for Blueprint Income.
A fixed annuity also known as a MYGA can be a smart investment choice for those looking to diversify their portfolios while earning higher than bank deposit rates.
If you are an investor with access to liquid capital and are interested in a source of growth potential outside of an increasingly volatile market, consider investing in a fixed rate annuity (MYGA). In retirement, an annuity can also provide you guaranteed income to supplement your other retirement income.
While the word “annuity” is often plagued with confusion because of the wide variety of products available and the associated terms and fees, fixed annuities generally operate similarly to a certificate of deposit, commonly known as a CD. and are easy to understand. We note that annuities are guaranteed by their issuing insurance company, whereas CDs are insured by the FDIC.