Annuity Rates Hit Multi-Year Highs: Lock In An Up To 9.90% 1st Year Bonus Rate Now?

An up to 9.90% 1st year bonus rate on a MYGA (multi-year guaranteed annuity) - MYGA rates are at some of the highest levels we’ve seen since we started talking about them on this channel last year, and you can now even get 5%-plus rates with some of the best-rated insurance carriers, depending on your investment amount and time horizon. Let's see what you're MYGA rate could look like.

Transcript

SPEAKER_00 0:00

Annuity rates are at multi-year highs with an up to 9.9% first year bonus rate on a multi-year guaranteed annuity. A MIGA. Might this be something for you? Hello Diamond Nesteg members, Super Savers and Course fans. I hope you're healthy and well. So one of the things we do regularly in our VIP investment club is share the best rates on bonds, CDs, and other investment ideas that we found. And one of the things that really jumped out to us this past weekend as Marcus and I prepared for our member live was how much annuity rates have jumped over the past several weeks with the spike in medium and longer term treasuries. Multi-year guaranteed annuities, MIGAs, are actually at some of the highest levels we've seen since we started talking about them on this channel last year. And you can now even get 5% plus rates with some of the best rated insurance carriers, depending on your investment amount and time horizon. No one knows where rates may go, but if the tentative signs of a de-escalation and reopening of the Strait of Hermuz actually materialize, and all fingers crossed for that, we may see oil prices and inflation worries drop with restored supplies, and along with them, yields for medium and longer dated treasuries should come down as well. 20-year and 30-year treasury yields have already been slowly edging lower from their recent highs at the time of this taping on May 25th, 2026. So, with that in mind, here are the three topics that will be covering today, and we're going to kick off with the best rate that we found for you this week. 1. How would an up to 9.9% first year bonus rate on a multi-year guaranteed annuity or myGA work? And what key questions might you want to ask beforehand? Depending on your state of residence and other factors, this up to 9.9% first year bonus rate may be available via or trusted annuity specialist at the time of this taping. So email us at jennifer at diamondnestec.com if you want to see where things stand at the time that you're watching this video. 2. What investment amounts and maturities do you need to get a 5% or higher myga rate with some of the highest rated insurance companies? And three, who should and who should not buy a myga? Let's dive in now, folks. How would an up to 9.9% first year bonus rate on a multi-year guaranteed annuity or myga work? And what key questions might you want to ask beforehand? A first year bonus rate on a MIGA is basically an introductory interest rate for a specific period of time, say one year in this case, that's higher than the rate you'll receive for the rest of the term of the annuity. Insurance companies use first-year bonus rates on annuities to make them more attractive. Think of it like the booster rates that are sometimes offered by banks if you open a new high yield savings account and keep new funds with them for a specific number of days or months. So at the time of this taping on May 25th, 2026, there is a first-year bonus rate of up to 9.9% on a six-year MIGA with an A-rated insurance company. In this column, we have the minimum investment amount. In this column, we have the bonus rate for year one. And in this column, we have the base rate for years two through six, which brings us to this next column, as well as the first question you might want to ask beforehand when it comes to a bonus rate. What is my average annual yield over the entire six years? Because as attractive as the bonus rate in year one may be, if the base rate for years two through six is substantially below market, your average annual yield over the term of the annuity here may also end up being significantly less attractive than you had originally expected. And in this last column, we have the ending value at maturity, how much cash you will get paid out from your initial investment at the end of the six years. Don't forget, mygas don't pay out regular interest, so it all comes in one big lump sum payment at maturity. So for this six-year annuity with this A-rated insurance company, if you invest a minimum of $10,000, your bonus rate for year one might be 9.65%, and your base rate for years two through six might be 4.65%, giving you an average annual yield over six years of 5.48% and an ending value at maturity of $13,763. If you invest a minimum of $100,000, your bonus rate for year one might be 9.75%, and your base rate for years two through six might be 4.75%, giving you an average annual yield over six years of 5.58% and an ending value at maturity of $138,412. And if you invest a minimum of $250,000, your bonus rate for year one might be 9.9%, and your base rate for years two through six might be 4.9%, giving you an average annual yield over six years of 5.73% and an ending value at maturity of $348,992, which in my mind are pretty nice sums here. But as I mentioned earlier, there are some key questions that you might want to ask beforehand in this situation. We covered the first one already. What is the average annual yield over the life of the MIGA? That's this column here with the above 5% yields for this six-year MIGA that we've been discussing. Because remember, when you see a high bonus rate for the first year or so, always make sure you understand the average annual yields over the entire period as well, to make sure the investment doesn't end up being much less attractive than it had initially looked after all's been said and done. Question two can you withdraw some money from this myga penalty free if you need it before maturity? So, with this illustrative example that we just walked through, any withdrawal will generally incur surrender charges. In other words, unlike with many other mygas, there's no 10% penalty-free withdrawal every year allowed in this case. So you need to be 100% certain that you do not need to pull any money out of your myga before maturity in this case, that you have a bountiful emergency fund to dip into in the worst case. Otherwise, you may have to pay stiff early withdrawal penalties here. If you think that you might need some liquidity and would prefer a MIGA that does allow an up to 10% penalty-free withdrawal every year, which has become more or less the standard for the industry, your bonus rate in year one and the base rate in years two through six may be about 15 basis points lower than what's shown here. Meaning that your average annual yields over six years would also be somewhat lower than what's shown here as well, but still in the solid 5% plus range, between 5.33% and 5.58%, depending on your investment amount. Remember though, even if you purchase a MIGA that does allow an up to 10% penalty free withdrawal every year, any amounts withdrawn that are above that threshold would still incur stiff early withdrawal penalties. And as usual, if you like the rates you see in this illustrative example, or if you want to see what bonus rates are available whenever you're watching this video, email us at jennifer at diamondnestic.com so that we can connect you with our trusted annuity specialist who can help you find the annuity solution that best suits your personal situation. And especially if you live in New York, because this product and these rates here are not available in New York. So our trusted annuity specialist can walk you through what the special rates might be in your state, if any. Moving on now to question three. What happens when your myger matures? Don't just assume that at maturity, your funds will automatically be dispersed to you via a check, bank transfer, or some other means. Think of it more like how many bank CDs work. At maturity, they may automatically roll over into a new CD, or in this case, a new annuity at the then prevailing market rates, unless you ask for your money back beforehand. So, with this illustrative example, for instance, after the six-year MIGA matures, it automatically rolls over into another four-year MIGA, the rate of which will be set by the insurance company based on the then prevailing market rates, with some sort of guaranteed minimum rate that should be written into the annuity contract before you sign. This guaranteed minimum rate will typically be significantly lower than the bonus rate and base rate. There is usually a 30-day renewal window at the end of the myga term, during which time you can cancel the automatic renewal. But if you were to miss this 30-day renewal window, your money will be locked in for another four years, turning what should have been a six-year MIGA into a 10-year MIGA basically. So make sure you know what happens to your MIG at maturity and that you don't miss any renewal window at the end that will lock you in for longer than you had originally planned for. Beyond these three key questions here, though, and as with all annuities, you should also be sure you understand the potential surrender charges on early withdrawals outside your penalty-free amount, as well as any other terms, conditions, and restrictions. Plus, as always, remember that annuities are designed to give you safety and predictability. Other investments may be more suitable if you're looking for inflation protection, growth, and or liquidity. More on this later. Keep in mind that the MIGA rates and minimum investment amounts in this table are dependent on a number of factors and subject to change at any time without prior notice, and that your personal rate is not fixed before you sign your annuity contract. So, as we already touched upon, the up to 9.9% year one bonus rate in this illustrative example is from an A-rated insurance company that our trusted annuity specialist works with. Now, according to AM Best, a ratings agency that specializes in the insurance industry, an A-rating is in the excellent category, as you can see here. And as long as you stay within the limits, you have the additional protection from your State Guarantee Association. That said, I know that quite a number of our Diamond Nest Eggers would rather err on the side of caution with their annuities and go with an insurance company that is rated even a notch or two higher in the superior category, so A or even A double plus. So on that note, let's move on to the next part of today's discussion. What investment amounts and maturities do you need to get a 5% or higher myga rate with some of the highest rated insurance companies? So let's compare some illustrative sample myga rates from two other insurance companies that we work with, an A double plus rated one and an A plus rated one. Remember that AAA is the best credit rating that an insurance company can get from AM Bes, meaning the MIGAs from the A insurance company that we're about to share with you are the lowest risk, making them the most comparable to Treasuries in terms of risk return profile. And A plus is the second best credit rating that an insurance company can get from AM BES. So still very safe in the overall big picture, generally speaking, but maybe not as safe as Treasuries, especially if you were to go above the protection limits of your state guarantee association. In this top section, we'll go through what the numbers look like for an A double plus insurance company. And in this bottom section, we'll go through what the numbers look like for an A plus insurance company. Here you have the investment amount required, and here you have the guaranteed myga term from two year all the way up to seven year for the A double plus insurance company, and for three-year myga, five-year myga, and seven-year myga for the A plus insurance company. As I mentioned towards the beginning of this video, the myga rates from this A double plus insurance company are actually at some of the highest levels we've seen since we started talking about annuities on this channel last year. And you can now even get 5% on a $50,000 seven-year myga, 5.1% on a $100,000 five-year or six-year myga, and five point one firm on a $100,000 seven-year myga. And as usual, the higher the investment amount and the longer the time horizon, the higher the rate generally is. As always, keep in mind that the MIGA rates in this table are lustrative and subject to change at any time without prior notice, and that your personal rate is not fixed before you sign your annuity contract. For the A insurance carrier, the rates are higher across the board, as you can see here. You may be able to get to 5% even with a $10,000 myga purchase if you have a time horizon of seven years. And with $100,000, you may be able to get to 5% with a three-year myga, 5.2% with a five-year mica, and even 5.3% with a seven-year myga. Higher risk, higher return, right? But as I always say, everyone's financial journey is different. And an A plus rated insurance company is still the second best credit rating that an insurance company can get from AM Best, as I mentioned earlier, and always stay under your State Guarantee Association's threshold. So if you're interested in any of the rates before they may potentially fall back down, or if you want to see what your myga options might look like whenever you're watching this video, email us at jenniferdiamondnestic.com so that we can connect you with our trusted annuity specialists who can help you find the best annuity that's out there for you. And let's move on now to the next part of today's discussion. Who should and who should not buy a myga? As always, we'll give you our personal perspective while keeping in mind that everyone's financial journey is different. You may want to consider a myga if you check one or more of these boxes. If you're nearing retirement and want to convert the lump sum payout from a myga into a lifetime income stream at maturity, if you're pre-retiree considering annuitization, as the industry would say, you may be able to do this conversion tax-free. The reason is that mygas may often be exchanged tax-free into other annuities, like single premium immediate annuities, SPIAs, via a 1035 exchange. And if that's an option that sounds potentially attractive to you and you want to learn more about how SPIAs may provide you with a lifelong guaranteed income stream to supplement Social Security and other sources, you can find the link to this SPIA video below. You may also want to consider a MIGA if you're a conservative investor with a low risk tolerance and seeking safe, fixed returns without market exposure, as a MIGA offers principal protection and predictable growth over its lifetime. You're a tax conscious investor. For example, you're in a higher tax bracket now and you might be able to benefit from tax-deferred growth if you can delay withdrawals until you're in a lower tax bracket. You're a long-term saver with at least a two-year investment horizon who doesn't need immediate liquidity and wants higher yields than CDs and treasuries. You're a yield-seeking fixed income investor looking to allocate a portion of your portfolio with a horizon of up to 10 years to somewhat higher yielding but still stable low-risk assets. Because they are less liquid, MIGAs tend to pay more than CDs and treasuries usually, as I just mentioned. Most of our Diamond Nesteg members, Super Savers, and Course fans who've purchased annuities recently are aged 50 plus and they do fit neatly into one or more of these boxes. Some even fit into all of these boxes. On the flip side though, here are some scenarios under which a myga may not be a good fit for you. You're looking for income. Mygas are deferred annuities and only pay out a lump sum after they mature. If you need immediate andor guaranteed lifetime income, you may want to consider SPIAs, single premium immediate annuities, or fixed annuities with income riders. You need inflation protection. Mygas typically don't adjust for inflation. If you're concerned about inflation eroding returns, you may want to take a look at tips andor I bonds instead, or at the real assets in the boost part of your portfolio. You need liquidity. If you think you might need access to your funds before the term ends, for example, beyond the 10% penalty-free annual withdrawal after the first year that many annuities allow, a MIGA is likely not for you due to the often high surrender charges in the earlier years. You're a long way from retirement and may need the money before you actually retire. Yes, annuities grow tax deferred, but early withdrawals before age 59 and a half may incur a 10% IRS penalty plus taxes, making mygas less attractive unless held in a tax-advantaged account. You're looking for high growth. Annuities are not designed for this, and neither are CDs and most low-risk fixed income products like treasuries and agencies. For higher returns, your best bet is to go with equities or other types of investments, again in the boost part of your portfolio. You're a short-term saver, meaning you have an investment horizon under two years. In such a scenario, T-bills, money market funds, short-term bond funds, andor CDs may be a more suitable alternative. You're risk-averse and uncomfortable with insurer risk. If you're someone who worries about relying on an insurance company's financial strength and are not comfortable with the guaranteed funds that cover insurances at the state level, you may want to consider treasuries or FDIC insured CDs instead. Now, let's assume that none of these boxes apply to you and that you actually fall into this group here and you like this six-year MIGA with its first year bonus rate of up to 9.9%, or these above 5% rates here from this A and A insurance carrier, then shoot us an email at jenniferdiamonds.com so that we can connect you with our trusted annuity specialist. And especially if 5% has been your magic number that you feel would help you sleep well at night, and or you're concerned that these rates may likely come down in the foreseeable future. Always remember that there is no cookie cutter one size fits all annuity solution. Any annuity you purchase should be customized to your individual circumstances, goals, and expectations and fit properly in your overall portfolio, regardless of size. Alright, Diamond Stak members, Super Savers, and Course fans, I hope you enjoyed today's video and learned something new. And see you again soon with more brand new wealth building content for your financial journey.