MYGA vs CD: Which is Right for You?

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Hi there, Stan the Annuity Man,

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America's annuity agent, licensed in all

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50 states, sporting my Carolina blue

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Stan the Annuity Man baseball cap

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because yes, I'm originally from the Tar

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Hills state of North Carolina. You know

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what's interesting about that? I know

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you're asking, "Hey, Stan, where did you

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grow up? What was the town's name?" And

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this is this is real. I'm not kidding

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you. The town's name was Stanley, North

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Carolina. They should have named it

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after me. Maybe they have already, but

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that's the name of the town. It's in

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Gaston County, which is right outside of

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Charlotte. What am I talking about

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today? We're talking about annuity

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comparisons. MAS, multi-year guarantee

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annuities versus CDs.

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What's the difference? Are they the

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same? Should I buy and all of that? Why

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haven't heard about MAS? CDs are they?

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Which one's better? All that stuff. And

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you know from me, Stan the Annuity Man,

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America's annuity agent that's licensed

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in all 50 states, including the one that

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you're sitting in. You know what's going

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to happen. Number one, there's going to

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be music, but not until I tell you and

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remind you that I'm the walking middle

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finger of annuity truth. Period. Now,

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hey, if I offended anyone out there

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talking about me being the walking

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middle finger of annuity truth, my

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apologies. But what I'm trying to say in

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a very succinct and fun and jovial and

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jcularity way is that I am brutally

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factual. There's no sales pitches with

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annuities. I mean I mean these are

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contracts. You can't polish it up. I

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mean you just can't. And speaking of

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that, let's talk about mas and CDs.

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Let's talk about CDs first. Number one

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disclaimer, I don't sell CDs. Number

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two, I love CDs. CDs are great. And in

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the Jimmy Carter world where you could

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get 10 or 12 or 8% interest on a CD that

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that my mom still talks about. She's

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like she like, you know, dad, I really

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really like those CDs that you and your

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father used to get. But when Jimmy

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Carter, you know, was a good man from

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the southeast from Georgia, you know, we

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used to get them 8% 9%. Do you have any

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of those? No, Mom. I don't. Okay. Those

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CD levels don't exist. And probably for

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the people watching this video,

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including me, we're probably not going

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to see those levels uh of interest in

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our lifetimes. We might, but I doubt it.

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You know, currently at the time of this

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taping, you know, CD levels are really,

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really tough. They're low. And it's

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primarily based on the 10-year Treasury.

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That's kind of the bogey, but CDs are

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great products. No moving parts, no

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market attachments, no annual fees. It's

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a contractually guaranteed yield for a

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specific period of time. And the reason

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I like CDs is you can get really

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short-term CDs like six month and three

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month and nine month and 12 month and

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you know 18month and two year three

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year. You I mean you can just you can

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ladder those those CDs. I mean it's

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great. I love it. But the problem is

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right now at the time of this taping

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that the yields just aren't there. But

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you know CDs are the are the safest of

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the two. You say which is safest migas

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or CDs? It's CDs. FDIC insurance. F

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stands for federal. That stands for

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we're going to freaking tax you money

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and get the money to pay people back

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that own CDs if there was ever a

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problem. So, you know, CDs are great and

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they're great for shortterm principal

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protected guaranteed annual yield. The

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problem is right now at the time of this

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taping the yield is just it's pretty

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skinny as they say. I ain't skinny but

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it's pretty the yields are skinny on on

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CDs. Now, let's talk about multi-year

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guarantee annuities. And a lot of people

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are just finding out about these. Why?

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Because, you know, we we sell a ton of

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MAS. I'm a big MA fan. If you go to my

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site at theanuityman.com, one of the

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books that I'll send to you, there's six

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owners manuals I'll send to you for free

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and under no obligation. No one's going

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to call you or show up your doorstep and

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we're just going to send them to you

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because we want you to be educated. But

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one of them is on MA's MA owners manual.

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It's about 60 pages of the good and the

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bad, the limitations, the benefits.

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You'll fully understand it. In addition,

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if you want to learn more about MAS, hit

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the playlist below me and there's a MA

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playlist of which I talk about a lot of

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things about MAS. Okay? But MAS are the

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annuity industries version of a CD. It's

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not a CD. It's a CD type. It functions

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similarly to a CD. Why do you say that

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Stan the Annuity Man, America's annuity

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agent? Because MAS guarantee an annual

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interest rate for a specific period of

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time. Sound eerily familiar? Yeah,

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that's because I just used that to

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describe CDs, certificates of deposit. M

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multi-year guarantee annuities currently

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at the time of this taping have much

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higher yields than CDs. And the reason

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is there's there's kind of a dynamic

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pricing model with multi-year guarantee

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annuities. Migas are issued by life

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insurance companies. So, life insurance

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companies sell life insurance. You know,

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you know that. And they sell a lot of

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them sell lifetime income products and

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then they sell migas and they have old

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bonds, Jimmy Carter bonds, Barack Obama

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bonds, Donald Trump bonds, George Bush

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bonds, Bill Clinton bonds. They got all

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these bonds in the portfolio that have

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different yields and calls and all that

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stuff on them. And so they use all of

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that to price in the guarantee and the

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and and you got to look at the MA

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carrier for the claims payability of

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that guarantee. So they price all of

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that to guarantee that specific yield

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for that specific duration. Now, if you

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go to my site at theanuityman front

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theanuityman.com front page, you you

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know the main page, you'll see click

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here to see live rates 247365. You can

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do that. All you have to filter it by is

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you know hit the drop down to pick your

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state of residence and then pick the

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drop down to click the duration whether

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it's two years, three years, four years,

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five years, whatever. And then up will

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pop the top yields to surrender

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contractually guaranteed best yields for

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your specific state. And that changes,

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you know, a lot every seven to 10 days.

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Annuity quotes and annuity rates change

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like a gallon of milk. You know, you got

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to look at it like that. Not one's

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better than the other. Mas are uh pretty

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much the same from the standpoint of of

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the yield. You know, they're going to

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give you that yield, you know, for the

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uh specific duration that you choose.

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But there are times that multi-year

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guarantee annuities have different types

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of death benefits attached. um with with

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multi-year guarantee annuities, you can

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use them in Roth IAS, regular IAS,

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nonIRA, checking a type checking account

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type stuff. But just remember with with

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annuities in general, you can't put more

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than 50% of your investable assets in

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annuities of any type in combination. So

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the annuity industry is very aware uh

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and they do not want people putting too

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much money into the into annuities in

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general. But you know 50 cent 50% for

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principal protection of your portfolio

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is not a bad deal. Um, I call Migas kind

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of the baseball analogy of a bunt

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single. It's not it's not sexy. It's

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it's not complicated, but you're going

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to make money. You're not going to pay

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fees. It is contractual. You're going to

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protect your principal. And at the time

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of this taping, we're in a raging bull

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market. You know, things just going up.

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I mean, we're having monkeys throw darts

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at the board and, you know, they're

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getting 20% returns. Everything goes in

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cycles. You know, a lot of people that

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are that are baby boomers that are

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turning 65, 10,000 every day, there's a

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demographic title wave. A lot of people

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are kind of wary because they've seen

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markets go up and down. And it feels a

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little tense right now at the time that

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we're taping this that hey, what can

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markets go down? Yeah, markets will go

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down up and down. You have to have

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market money in the stock market, but

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multi-year guarantee annuities would be

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a good place for you to look at

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principal protection. Now, if you're

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looking at it from a nonIRRA standpoint,

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you know, with CDs, you're going to have

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to pay taxes on that interest every

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single year in a nonIRRA using CDs. With

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multi-year guarantee annuities in a

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nonIRRA account, that interest grows tax

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deferred. Now, you have to pay taxes

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when you eventually pull it out. But a

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lot of people like it, number one,

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because it's getting higher yield than

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CDs right now, but number two, you can

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defer taxes using a non-qualified

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account. In addition, at the end of the

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term, and let's give you an example, you

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have a five-year multi-year guarantee

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annuity. And at the end of the five

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years, we're going to be, of course, you

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bought it from us because Stan the

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annuity man, and you went to the site

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and got the books and all that stuff,

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but you say, you know what, I don't

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really need the money. Um, I'm going to

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I I just want to keep pushing the tax

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puck down the ice hockey analogy. Can we

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transfer it? The answer is yes.

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Regardless of account, you can transfer

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a MIGA to another uh multi-year

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guarantee annuity. non-t taxable event

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does not trigger taxes

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whether it's IRA or nonIRRA even if it's

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non IRA you can go from one MA to

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another section 1035 of the IRS code

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says that you can transfer from one

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annuity to another without taxes in a

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non-qualified account if it's an IRA

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account it goes from one IRA to another

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um established at the carrier that's a

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good thing now can mas and CDs be used

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in combination absolutely in a in a

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normal interest rate environment where

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CDs are getting a little bit better

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yield

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You could do really really short-term

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duration CDs like six month, 12 month,

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18month and then after that do migas,

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you know, three year, four year, 5year.

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We used to do a lot of that. I don't,

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you know, I don't sell CDs, but I would

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advise you go to bankrate.com and and

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check the best CD rates in the country

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because and and find because they're

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FDIC insured, etc. Because one's not

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better than the other. MAS aren't better

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than CDs because the interest is growing

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tax deferred in a non-qualified account,

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nonirra account. That doesn't make mas

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better. It's just kind of a unique thing

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between uh when you compare Migas and

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CDs. MAS can also be converted to other

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types of annuities like income annuities

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like an immediate annuity at the at the

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end of the duration. So there's a lot of

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flexibility with that. But at the bottom

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line with all of this is if you want

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principal protection, okay, and you know

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you know my acronym pills. P stands for

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principal protection. I stands for

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income for life. L stands for legacy.

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The other L stands for long-term care.

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The P for principal protection

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encompasses both CDs and MAS. They're

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both great products. They're both simple

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products. They're both proconsumer

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products. And I encourage you to check

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out the live feed on my site at

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theanuityman.com.

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Hey, do me a favor. Hit the subscribe

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And when she's happy, I'm happy, which

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comments. Share it with your friends and

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not friends. and like it and I'll see

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you on the next Stan the Annuity Man

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YouTube video.

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[Applause]