A resident of Philadelphia, Lawrence “Larry” Koresko serves as president of Insmax Insurance Brokerage, Inc. Among the products that Lawrence Koresko’s company offers are Multi-Year Guaranteed Annuity (MYGA).
A MYGA is a kind of annuity that provides a fixed interest throughout the entire length of the term. Thus an 8-year MYGA with an interest rate of 5 percent will hold that interest rate throughout the entire 8 years. There is no market risk as the growth is guaranteed. While other annuities are geared to generating income, MYGAs are used primarily to conservatively grow retirement funds.
Most MYGAs have a withdrawal provision, which means a percentage of the account value or the initial investment can be withdrawn annually. Funds grow tax-deferred in a MYGA with taxes falling due only upon withdrawal. This type of annuity is mainly purchased by those who are over 55 years old as there is a 10 percent penalty imposed by the IRS on any withdrawal of funds before the age of 59-1/2 years.
A MYGA is a kind of annuity that provides a fixed interest throughout the entire length of the term. Thus an 8-year MYGA with an interest rate of 5 percent will hold that interest rate throughout the entire 8 years. There is no market risk as the growth is guaranteed. While other annuities are geared to generating income, MYGAs are used primarily to conservatively grow retirement funds.
Most MYGAs have a withdrawal provision, which means a percentage of the account value or the initial investment can be withdrawn annually. Funds grow tax-deferred in a MYGA with taxes falling due only upon withdrawal. This type of annuity is mainly purchased by those who are over 55 years old as there is a 10 percent penalty imposed by the IRS on any withdrawal of funds before the age of 59-1/2 years.
