Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

Sunday, April 6, 2025

The MYGA as a Bond Various

We imagine MYGAs needs to be thought-about a brand new asset class that provides up assured charges, tax-deferred accumulation potential, and principal safety.

With a 60/40 portfolio combine (60% shares/40% fastened earnings), for instance, taking a slice of the fastened earnings portion could be one thing to think about: The brand new combine may very well be 60% shares, 20% bonds and 20% MYGA.

Why? Shopping for a multi-year assure fastened annuity and holding it for all the assure interval is a secure strategy to save, much more so than bonds, which might fall in worth in a rising-rate surroundings.

The worth of a set annuity can also be totally backed by the issuing insurance coverage firm.

If a buyer is worried about market volatility, this may very well be a purpose to dial up publicity to the MYGA portion.

What if a retiree has a big quantity of belongings in a target-date fund? Would that have an effect on how a lot of the retiree’s different belongings ought to go into MYGA contracts?

As famous above, market charges are actually dropping, so fastened earnings devices will typically see a drop in yield, however by locking in a fee now, with a MYGA, the yield is assured for the contract interval.

And, as a result of annuities are designed to be held for the long run, they might provide greater rates of interest than different fastened earnings choices, which may help fulfill fastened earnings wants for retirees.

Once more, with the 60/40 portfolio combine instance, taking the combo to 60% shares, 20% bonds and 20% MYGA helps cut back market threat and ensures a yield stage for a portion of the portfolio.

David Byrnes. Credit score: Safety Profit

Related Articles

Latest Articles