Trick or Treat - are you a gambler or a "for sure"?

A syndicated columnist each year writes about how he allows young trick-or-treaters to choose from two treats. One treat is a small piece of candy. The other treat is an envelope that may or may not contain two quarters. He tells them that half of the envelopes are empty, and half contain some cash. The children pick about 50/50 between candy and envelope when offered these options.

Insurance companies offer something similar with their deferred annuities. One is a guaranteed treat and the other is unknown.

The for-sure candy is called a Multi-Year Guaranteed Annuity (MYGA). They offer a guaranteed interest rate for a guaranteed period of time. The rates are really nice right now. You can get over 5% interest for a 5-year MYGA.

The not-for-sure envelope is called a Fixed Indexed Annuity (FIA). Their interest rate is tied to the performance of an index. While you do not know if you will earn interest, the historical performance of FIAs has often exceeded the performance of the sure-thing MYGA.

With both type annuities a personalized illustration shows you how your money can grow. We send these illustrations by email, and they are available without cost or obligation.

Are you the type of retirement saver that prefers a for-sure candy or do you like the potential of the unknown? You can also check out our website for a much more thorough explanation of annuities and their benefits.

Be well!