• MYGAs offer a fairly steady means of fixed income.finance #3 image by Adam Borkowski from Fotolia.com
  
  Multiyear guaranteed annuities, or MYGAs, are a kind of annuity that provides payments of a guaranteed, fixed amount for more than one year and potentially for the remainder of the investor's lifetime. Multiyear guaranteed annuities offer some relief from taxes and some insulation from changes in the market, therefore making them predominantly of interest to those facing retirement.
  
  

Guaranteed Rate

• A Multiyear guaranteed annuity offers an investor some security for a relatively long period of time. The principal will not fluctuate with the market and the guaranteed interest rate will determine a fixed payoff for many years. Therefore, an investor is also typically prohibited from withdrawing any funds from the annuity before the fixed-payment period is over. Doing so would incur an early-withdrawal penalty fee. For retirement planning, a lifetime multiyear guaranteed annuity makes budgeting easier. Retirees only need to estimate inflation rates in order to determine their cost-of-living needs into the future. In real numbers, though, they can expect the same figure for the rest of their lives.
  
  

Surrender Scenarios

• In general, an investor receives the benefits of a multiyear guaranteed annuity in return for committing to the annuity for the entire period of its guaranteed rate. Withdrawals before the end of the period can result in surrender fines. The major detractor of a multiyear guaranteed annuity is the limit on liquidity. However, there are some cases in which surrender is possible. Upon completing a guaranteed rate period, investors have a 30-day window during which they may surrender the annuity without penalty. After the 30 days, the contract is renewed for another period of the same length. Multiyear guaranteed annuities may also allow investors to withdraw money that does not exceed the credited interest. If the investor dies, death benefits are paid out.
  
  

Other Benefits

• The principal and the interest of a multiyear guaranteed annuity are protected from taxes until they are withdrawn, allowing the investor to benefit from the interest accruing from a larger principal. As insurers offer multiyear guaranteed annuities with interest rates varying up to 10 percent or more, it is important to compare several insurers. Websites like ImmediateAnnuities.com offer options from many providers. Multiyear guaranteed annuities also make a safe choice for a retiree unfit to respond to market conditions and make investing decisions throughout old age. When selecting a retirement plan for an individual affected by senility or dementia, a well-researched multiyear guaranteed annuity plan can offer peace of mind.