A multi-year guaranteed annuity, or MYGA, is a fixed annuity that guarantees a fixed interest rate for a set length of time, often three to ten years. A MYGA is suited for someone approaching retirement who seeks tax deferral and investment return assurance.
Purchasing a MYGA is one approach for supplementing investment accounts and Social Security benefits in retirement. MYGAs are a possibly safer option to grow your money because you won’t have to pay taxes on the growth until you start receiving payments. They’re also known as CD-type annuities since they have some of the same features as certificates of deposit, such as a fixed interest rate and a time horizon for the investment.