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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 end-of-term accumulation value for your specified initial premium 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%. With an initial premium of $100,000, this results in no growth, yielding an end-of-term value of $100,000. Consider a laddering strategy by allocating funds to terms with higher rates to maximize 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.