What if the cash sitting in your checking account could compound year after year without the IRS taking a cut of the interest every year? Stan, The Annuity Man, explains how Multi-Year Guarantee Annuities make that possible.

In this episode, The Annuity Man discussed:

• The PILL framework: principal protection, income for life, legacy, long-term care

• MYGAs as the annuity industry's version of a CD

• Tax-deferred compounding for non-qualified money

• Taking interest out, turning it on and off, and moving to a new MYGA without paying tax

• Why MYGA rates can be higher than CD rates

Key Takeaways:

• Buy an annuity for what it will do, not what it might do. Annuities are contracts that shift risk to the insurer. They aren't tools for market growth.

• CD and money market interest is taxed every year. MYGA interest in a non-qualified account grows and compounds with taxes deferred.

• You don't have to take anything out when the term ends. You can move the money into another MYGA without paying tax, and it keeps compounding.

• Need income for a while? You can take interest off the top and keep your principal, then switch the payments off when you no longer need them.

• MYGA rates can beat CD rates because insurance companies back them with other profit centers. That doesn't make MYGAs better than CDs. It just makes them a strong fit for non-IRA cash.

"Multi-year guarantee annuities - it is the biggest no-brainer of all time and the greatest example of the eighth wonder of the annuity world, which is compound interest." — Stan The Annuity Man

Connect with The Annuity Man:

Website: http://theannuityman.com/

Email: Stan@TheAnnuityMan.com

Book: Owner's Manuals: https://www.stantheannuityman.com/how-do-annuities-work

YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g

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