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This chart illustrates the potential of a Multi-Year Guaranteed Annuity (MYGA), a fixed annuity product that offers a guaranteed interest rate over a specified term, providing predictable growth backed by the issuing insurance company. The table shows the initial premium required to achieve your desired End of Term Accumulation Value across various terms (2 to 10 years), based on the interest rates you provide.
Focus on the 5-Year Term: The 5-year interest rate is currently set to 0.00%. Since at least one other term has a non-zero interest rate, this means that for the 5-year MYGA, you would need to invest the full End of Term Value today (no interest growth over the term). Consider a laddering strategy by allocating funds to other terms with higher rates to optimize growth. For example, if you have $750,000 to invest, you might allocate more to a term with a higher rate (e.g., 7 years) and less to the 5-year term to balance growth and liquidity.