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Making Sense Out of Dollars

“A” is for Annuities

Part 8 of 17

Joel Lerner
Posted 3/4/22

What’s the difference between a Fixed Annuity and a CD?Fixed annuities (a.k.a. multi-year guaranteed annuities or MYGAs) operate similarly to CDs. Both vehicles offer a safe way to save money, …

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Making Sense Out of Dollars

“A” is for Annuities

Part 8 of 17

Posted

What’s the difference between a Fixed Annuity and a CD?
Fixed annuities (a.k.a. multi-year guaranteed annuities or MYGAs) operate similarly to CDs. Both vehicles offer a safe way to save money, crediting higher interest rates than available through savings accounts by requiring you to lock your money away for a period of time. However, fixed annuities have longer-term investment horizons and tax-preferential treatment, making them a better choice for retirement savings. As CDs are the more well known of the two products, it can be easier to understand fixed annuities using a side-by-side comparison.

Thought for the Week
The “haves” and the “have nots” can be traced back to the “did” and the “did nots.”

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