Are there alternatives to CDs?
Yes! One alternative is a MYGA, which stands for Multi-Year Guaranteed Annuity.
A MYGA is similar to a CD in that it is issued for a specific amount of time with a specific rate structure. Whereas CDs are guaranteed by the FDIC, a MYGA is guaranteed by an insurance company.
MYGA advantages over CDs include:
Higher interest rates offered
Income taxes can be deferred until interest is paid
Disadvantages include:
MYGA are guaranteed by an insurance company. CDs are guaranteed by the FDIC
I offer a no-cost, no-obligation phone consultation to review current rates and answer any questions you may have on how MYGAs can be an asset class to consider for your portfolio.
