If you’re like many retirees, the fear of losing money outweighs the excitement of chasing gains. That’s why more and more people nearing or in retirement are turning to a tool that offers steady, guaranteed growth—the Multi-Year Guaranteed Annuity, or MYGA.

At Cardinal Advisors, we often get asked: “Is there a way to earn more than a savings account or CD without risking everything in the market?” MYGAs may be the answer.

What Is a MYGA?

A MYGA is a type of fixed annuity that offers a guaranteed interest rate for a set number of years, usually ranging from 2 to 10 years. Think of it like a bank CD, but issued by an insurance company—and often with better interest rates.

The interest rate is locked in at the time of purchase and does not change for the term of the contract. That means no surprises, no market swings, and no loss of principal if held to maturity.

Why Retirees Like MYGAs

There are several reasons why retirees and pre-retirees are choosing MYGAs:

•  Guaranteed Interest Rates – You know exactly what you’ll earn.
•  No Market Risk – Your money isn’t affected by stock or bond market volatility.
•  Tax-Deferred Growth – You only pay taxes on interest when you withdraw it.
•  Simple and Transparent – Easy to understand and track.

In fact, many people transitioning from CDs or money market accounts find MYGAs offer more competitive rates—especially in today’s interest rate environment.

What Is a MYGA Ladder?

One of the biggest concerns with fixed annuities is liquidity—what if you need your money before the term ends?

That’s where the MYGA ladder comes in. Instead of putting all your funds into one MYGA, you split the amount across several contracts with staggered maturity dates. For example, you could divide $250,000 into five MYGAs: a 2-year, 3-year, 4-year, 5-year, and 6-year. This setup allows one MYGA to mature every year, giving you regular access to your funds without penalty.

It’s a smart way to solve the liquidity issue while locking in the higher interest rates that MYGAs currently offer.

MYGAs and Your Retirement Plan

MYGAs aren’t for everyone, but they can be a valuable tool when used strategically. We typically recommend them for:

Cash you don’t need in the near term

IRA or non-qualified money you want to grow safely

Those looking to reduce exposure to the stock market

Retirees looking for predictable income in the future

Some MYGAs also allow partial withdrawals, often up to 10% annually without penalties. Others can be tailored to accept IRA funds or be structured to align with your retirement year.

And unlike many other investments, MYGAs come with a beneficiary designation, meaning the money can pass directly to your heirs outside of probate.

A Real-Life Example

We recently worked with a widow who wanted to keep part of her life insurance proceeds safe while still earning decent interest. We placed $250,000 into a MYGA ladder and left another $100,000 in a money market account for immediate access. Now, each year one of her MYGAs matures, giving her options and flexibility without touching the rest of her plan. She’s earning competitive rates while maintaining peace of mind.

Is a MYGA Right for You?

The rates and terms vary by state and change regularly, but the underlying value of MYGAs remains the same: steady, predictable growth without the worry of market losses.

If you’re tired of market risk and looking for a safer place to grow your money, we’d be happy to help you explore how a MYGA could fit into your plan.