Fixed Annuity Strategy Comparisons
Boss, here are two of the most requested side‑by‑side breakdowns we use with retirees and pre‑retirees evaluating safe accumulation and income strategies. Clean. Visual. Client‑ready.
Strategy
Accumulation
Rate Environment Tool
Single-Term MYGA vs Ladder Strategy
When locking in today’s multi‑year rate, you can either place everything into one term or stagger maturities over several terms (laddering). Laddering can smooth reinvestment risk; a single term can maximize a currently attractive rate. Below is how they separate in practice.
📌Single-Term MYGA
One purchase, one renewal decision. Maximizes the highest available rate TODAY if curve is favorable.
Typical Term: 3–7 Years
Sample Credited Rate: 5.60% (5-Year)
🪜Ladder Strategy
Divide funds across multiple terms (e.g., 2,3,4,5 years). Each maturity can roll into a fresh top rate.
Structure: Even split or weighted
Blended Rate Example: 5.35% Avg
Feature
Single-Term
Ladder Strategy
Interest Rate Today
Maximizes current top rate
Weighted average of available terms
Reinvestment Risk
All funds exposed at single maturity date
Staggered maturities reduce timing risk
Cash Flow Flexibility
Limited until maturity (except free withdrawals)
Portion matures annually (if structured)
Complexity
Simplest (1 contract)
Multiple contracts to track
Administrative Load
Minimal
Renewal decisions staggered
Rate Capture Over Time
All-in bet on starting rate
Opportunistic resets at each maturity
