Necessity is the mother of invention and the MYGIA is a perfect example. We generally have two distinct types of annuities and we described
MYGAs versus Indexed Annuities (often called FIAs) in detail. Very simple differences: We also dived into why
Annuities make so much sense right now in our article and deeper dive video. Current challenges: People shopping annuities feel stuck as they don't want to "pick wrong". Sure, you can straddle two different products (50% MYGA and 50% indexed) and
we looked at how to structure this. Or... There are new products coming online which may do the same thing all under one roof. MYGIAs! Basically, a minimum fixed rate (a MYGA) or a share of the S&P (Indexed); whichever is bigger. It's the Goldilocks zone if you want more return but are worried about flat years with indexed annuities. Even in a bad year, getting 3-4% as a floor is fantastic! We'll look further into this option but first, our credentials: This is what we'll cover: Let's get started! The economic cycles are all askew since Covid. Apparently, if you pump Trillions of dollars into a worldwide economy, there are knock-on effects (sarc). The whiplash from markets has been stupendous and at this point, we're ending in a peculiar situation. Your choice of annuity is really driven by two components: MYGA rates are directly resulting from 10-year treasuries. Essentially, the carriers are able to offer rates based on what they can earn from the other side on debt instruments, and that all leaks outward from the treasury markets. That same interest rate pays for call options on various indexes which gives you exposure to the various indexes (S&P, Nasdaq, Gold, Mag 7, etc.). If the call options expire worthless (market went down), there's no loss other than cost of the options but they were paid for with the interest...which ultimately came from pot #1 - Treasuries! Alright, now you know how the sausage is made. Right now, it's a rough patch. Even Buffett has record money in cash. The stock market is at an all-time high. And we mean ALL TIME! By any metric you want to look at.
The federal debt and resulting debt interest rates are a generational headwind as well. Check out interest payments now on the debt!:
So...the MYGIA is a Straddle annuity we can use to hedge our bets! OR Whichever is HIGHER! Let's look at a current and attractive example of this option. It came across our desk and our eyes immediately lit up. YES! In fact, I plan to add this to my personal annuity mix. See...we're all about annuity strategy here! Interestingly, since MYGIAs straddle two different worlds, we can access them from either MYGA or FIAs. The best bet is to request your quote here and we'll send over the full illustration and quote:
We don't push or sell. If you have questions, just reach out to us. The MYGIA benefits above are pretty standardized since they are fixed-duration products and not dependent on a person's age. If interest rates change materially, the rates offered will likely adjust for NEW applications going forward. That's true for all annuities which are constantly calibrating to existing market pressures. Again, reach out with any questions! We can also look at a traditional Straddle combination of MYGAs and Indexed annuities. We just answer questions all day and if we're helpful, hope you work with
us since there's no cost for our assistance. Call 800-320-6269
Annuity
Shop and Compare - The MYGIA annuity hybrid
MYGIA Annuities Explained in Simple Terms
The rise of the MYGIA - just in time
It generally pays a fixed minimum rate that's 1-2% lower than a pure MYGA
A share of an index that's generally lower than a pure Indexed Annuity.
Our favorite MYGIA (currently)
How to quote and enroll in MYGIAs
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