It sure doesn’t feel like there is much safety in the financial world right now. Actually, in many cases these days, “safety” and “finances” won’t be found in the same sentence very often. Because, think about it - the primary method that people use to grow their assets today is a figurative roller coaster, where an unforeseen circumstance can wipe out entirely too much wealth. And, honestly, we think you’ve worked far too hard to have to go through that kind of situation.

This is where the world of annuities can provide such an impactful role for so many people. When it comes down to it, this powerful financial tool can provide you with the guaranteed income that you need to replace those work paychecks that disappear after retirement. However, because different annuities focus on so many different areas, it is important to establish your financial goals before settling on an option. For example, while one annuity may give you more room to grow according to market index-linked performance, another annuity may provide you with a higher guaranteed lifetime income stream in retirement.  With more than 5 different types of annuities, it comes down to understanding which one or combination will help you meet your retirement goals.

So, where do Multi-Year Guaranteed Annuities (MYGAs) fit into the equation? For those who are primarily interested in a safer accumulation vehicle, as well as guaranteed growth with no exposure to market volatility, this type of annuity should represent a strong consideration.  With other safe money instruments such as savings accounts, money markets and bank cds at all-time lows, the insurance industries alternative may be the answer. And, Atlantic Coast Life brings a couple of strong products to the table in this genre, including the Safe Harbor and Safe Haven options.

How would you like to take a portion of your retirement savings, put it into an account, and guarantee that it will grow and be safe for a number of years? If that sounds like an ideal situation, the Safe Harbor and Safe Haven Multi-Year Guaranteed Annuities MYGAs are worth another look. These annuities provide a guaranteed growth rate that varies based on the duration. Typically, the longer you commit to investing in this type of vehicle, the higher amount of contractually guaranteed interest.  Both the Safe Haven and Safe Harbor products from Atlantic Coast Life offer terms from years to as high as 20 years. With rates at the time of this writing currently at 3.25%-3.65%, compared to the less than 1% rates offered in today’s bank CDs, money markets, and bonds, and it is easy to see how powerful these annuities can be and why they've become so popular.

If 20 years feels like too much of a commitment, you can also choose five, six, seven, or 10 years. Each of these options provides rates at over 3%, which is still a much better option than anything you’ll find in the aforementioned other financial tools.

Both the Safe Harbor and Safe Haven options from Atlantic Coast Life provide very similar benefits but also have subtle differences.  The Safe Haven MYGA is a Compound Interest Annuity and the Safe Harbor is a Simple Interest Annuity.  Both come with an interest bonus (which happens during the first year of the 5, 6, 7, and 10-year choices). These annuities also allow you to annuitize your contract, setting you up for a potential lifetime of guaranteed income payments. There is also a renewal feature, where you will be able to elect to invest in another round of the same annuity. Of course, there are subtle differences with regards to death benefits, preferred withdrawal riders, and more, so it is important to discuss your options with a professional before making a decision.

Keep in mind, there are certain advantages that you give up by going with a MYGA. Those who are primarily interested more upside growth potential via an market index-linked strategy with a 0% floor will find better options available in a Fixed Index Annuity. Additionally, there are other annuities out there that are stronger options if creating a guaranteed lifetime income stream is your primary goal.