Up To 5.50%: Grab These Rates Before They're Gone | MYGAs (Multi-Year Guaranteed Annuities) vs TIPS

Treasury yields moved lower last week, but it’s still not too late for the magic 5% number that quite a few of you have been waiting for, if you’re willing to look beyond Treasuries without compromising the safety of your investment. Or perhaps you might be leaning more towards the upcoming 5-Year TIPS auction and a potentially attractive real yield given the latest 4.2% inflation report from the BLS?

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Treasury yields have moved lower this week, but it's still not too late for the magic 5% number that quite a few of you have been waiting for. If you're willing to look beyond treasuries without compromising the safety of your investment, or perhaps you might be leaning more towards the upcoming five-year tips auction and a potentially attractive real yield, given the latest 4.2% inflation report from the BLS. Hello, Diamond Singh members, Super Savers and Course fans. I hope you're healthy and well. So medium and long-term treasuries have come down a bit since the 20 and 30 year, peaked at 5.19 and 5.18%, respectively on May 19th, their highest level since 2007. Treasuries across the entire maturity spectrum are now under 5% at the time of this taping on June 12, 2026. The main driver of lower yields was again the international situation, in our mind. US-Iranian tensions appear to be somewhat easing again, and along with them, so are oil prices. A barrel of oil cost about $84 at market close this past week, significantly below the $90 to $100 range that we had almost gotten used to over the past few weeks. It may also have helped that markets remain convinced that the Fed won't spring a surprise rate increase on us in next week's FOMC meeting, despite the CPI, the consumer price index, increasing by 4.2% year over year in its latest release this past Wednesday. And also despite equity markets remaining strong and loss making, SpaceX showing a valuation of $2.1 trillion at the end of its first day of trading. Some observers are starting to think that we may be approaching bubble territory for the SP 500 and the NASDAQ. But that's a topic for its own video. So for the safety conscious Diamond Nasdaq investors and savers who don't want to give up on yield, but who may have started wondering whether they might have missed an opportunity to lock in the yields while they were high, here are the three topics they'll be covering today. 1. Where did Treasury yields close out the week? 2. How much more can you earn with multi-year guaranteed annuities, mygas, from top-rated insurance companies? Annuity rates generally track interest rates, but usually with a bit of lag time. So what we're seeing this week is that despite somewhat lower treasury yields, myga rates have continued to move higher, even with some of the highest-rated insurance companies. The highest rate we have in this section of today's discussion is 5.5% on a $100,000 seven-year MIGA from an A insurance carrier. These two sections together should provide some insights for those of you who are laddering MIGA and treasuries for a safe, stable, and predictable income stream in the base part of your portfolio that hopefully lasts a lifetime. And for those of you who are more concerned about inflation protection in light of the latest round of inflation readings, we have three. What are the yield expectations for the upcoming five-year tips auction? Let's dive in now, folks. Where did Treasury yields close out the week? So, for those of you who are laddering migas and treasuries in the base part of your portfolio for a safe, stable, and predictable income stream that hopefully lasts a lifetime. Let's kick things off with Treasuries and take a look at Treasury yields from this past Friday across all the maturities that the Treasury issues at auction. This row shows where they closed out the week on June 12, 2026. This row here shows the increase or decrease in rates over the past week. And this row here shows the increase or decrease in rates since January 2nd, 2026. Increases in rates are shown in green and decreases in rates are shown in red. As we already discussed, everything is now below 5%, although just slightly for the 20 and 30 year treasuries at 4.98 and 4.97 respectively. The middle maturities are down more, and the 10-year is now yielding less than 4.5% again. That said, in the big picture, treasury yields across all maturities remain at attractive levels compared to the past 20 years, and with the exceptions of the 1 month and the 1.5 month, also above where they were at the beginning of the year. But it's hard to say where this may be going. A lot will depend on both Iran and our largest tech companies. So these are clearly two things to keep watching. And if you're interested in watching along with us and continuing the conversations with me, Marcus, and our Diamond Nestec members on other safe ways to generate additional income in 2026 beyond what treasuries and annuities can pay, either via preferred shares, international bonds, high-yielding bond funds, and other investment vehicles. Come on over and join our VIP Investment Club. Our June member live is happening this coming Friday on June 19th at 5 p.m. Eastern Time, 2 p.m. Pacific Time. Visit our website at www.diamondnestic.com and click on this yellow private VIP Investment Club button to join us today. I've also linked everything below this video for you. So do keep in mind that these treasury numbers give you a general feeling for where rates currently stand along the maturity spectrum. The yields that you may get when you buy at a specific auction or from a specific broker or when you sell will likely differ from what's shown here, depending on when you're transacting. And let's move on now to the next part of today's discussion. For those of you who don't mind giving up on some liquidity for potentially higher yields than what treasuries can offer that are still safe. How much more can you earn with multi-year guaranteed annuities, mygas, from top-rated insurance companies? Here are some illustrative sample myga rates from an A versus an A insurance company that we work with. Remember that AAA is the best credit rating that an insurance company can get from AM Best, meaning the MIGAs from the A double plus 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 is the second best credit rating that an insurance company can get from AM Best. 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 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 a 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, annuity rates generally track interest rates, but usually with a bit of lag time. So what we're seeing this week is that despite somewhat lower treasury yields, myga rates have continued to move even higher. For this A insurance company, rates on the two-year myga are the same as last week. Rates on the three-year and four-year mygas are 15 basis points higher than last week. Rates on the five-year myga are five basis points higher than last week. And for a $100,000 investment, you might be able to get 5.05% on a five-year myga now. About 84 basis points more than a five-year treasury. Rates on the six-year and seven-year migas are 10 basis points higher than last week. For a $50,000 investment, you might be able to earn 5% on a 6-year mica now and 5.05% on a seven-year myga. About 71 basis points higher than the rate on a seven-year treasury, which is paying 4.34% at the current time. And of course, if you were to invest more than $50,000, those rates would be even higher. For example, for a $100,000 investment, you might be able to earn 5.15% on a six-year myga now, and 5.2% on a seven-year myga. For a $1 million investment, you might be able to earn 5.2% on a six-year myga at the time of this taping, and 5.25% on a seven-year myga. And if you have more than the amounts shown here, say north of $10 million, your rate might go as high as 5.3% on a six-year myga and 5.35% on a seven-year myga with this A double plus insurance carrier this coming week. As always, keep in mind that the MIGA rates in this table are illustrative, dependent on a number of factors, and subject to change at any time without prior notice, and that your personal rate and conditions are not fixed before you sign your annuity contract. For the A insurance carrier, rates have also moved up a fair bit across the board. So with $100,000, you may now be able to get to 5.1% with a three-year mica, 5.4% with a five-year mica, and even 5.5% with a seven-year myga. Higher risk, higher return, right? But as I always say, everyone's financial journey is different. And an A rated insurance company is still the second best credit rating that an insurance company can get from AMBEST, as I mentioned earlier. Always stay under your State Guarantee Association's threshold. And don't forget that MIGAs are generally not liquid and don't pay regular interest. So if any of these rates are interesting to you, or if you want to see what your MIGA or other annuity options might look like whenever you're watching this video, email us at jenniferdimondestec.com so that we can connect you with our trusted annuity specialist who can help you find the best annuity solution that's out there for you. And let's move on now to the next part of today's discussion for those of you who are more concerned about inflation protection in light of the latest round of inflation readings. What are the yield expectations for the upcoming five year tips auction? So the five year tips auction will be taking place this coming week on June 18th. At the time of this taping on Fidelity's platform, the coupon is 1.25%. This is a reopening auction, so this coupon of 1.25% has already been set. And the expected real yield is 1.783%, indicating that real yields have moved up a fair bit since this five-year tips was originally auctioned off earlier this year. Please also keep in mind that these estimated numbers on Fidelity's platform can and usually do change all the way up to the time of the auction. Now, this expected real yield at the moment is a fair bit higher than the average real yield of 1.38% and 1.56% over the past 12 and 24 months, respectively, and also higher than the current I-bond fix rate of 0.9%. So if you're comfortable with tips, this may be something to take a closer look at. Remember though that whereas I-bonds are pretty much straightforward, tips like annuities can get complex and fast, especially if you need or have to sell those tips before maturity. That said, for the right investor who's willing to invest a bit of time to understand them, both tips and annuities may be worth the effort as they both offer something that's not easily available from other investments. Bond beginners, folks, please refer back to these two modules here on tips and ibonds for refresher. For those of you who are not in our bond courses, I've linked some of our YouTube videos on tips and Ibond basics below this video for you as well. Do note that the break-even inflation rate on the five-year tips was about 2.39% at the close of market on Friday. This is somewhat lower than the average break-even inflation rate of about 2.44% over the past 12 months, but more or less in line with the average break-even inflation rate over the past 2, 3, and 4 years. So, if the 5-year tips fits your timeline, goals, and expectations, and you want to add some inflation protection because you believe that inflation over the next five years will average more than 2.39% annually, for example, because you believe that the war in Iran will drag on andor prices will stay elevated, and you're comfortable with the complexity, overall lower liquidity, and tax nuances of tips, then this may be an auction to consider dollar cost averaging into. If, on the other hand, you believe that inflation over the next five years will average less than 2.39% annually, then you may want to skip the five-year tips auction this time around and redirect that money towards a five-year T-note or five-year myga instead, assuming that's the timeline you're working with and it suits your personal situation. Again, at the time of this taping on June 12th, 2026, the 5-year T-note closed at 4.21%, whereas 5-year migas from the top-rated insurance companies might be paying anywhere between 4.8% and 5.4%, depending on your investment amount and whether you're going with an A or A double plus rated insurance carrier. And as always, email us at jennifer at diamondnestic.com if you'd like to get connected with a trusted annuity specialist to see what your personal rates might look like whenever you might be watching this video. And for VIP Investment Club members, we will be posting an update on the expected numbers for the five-year tips auction after the market closes on the evening before the auction. All right, Diamond Nestec members, Super Savers and Course fans, I hope you enjoyed this video and learned something new. And see again very soon with more brand new wealth-building content for your financial journey.