I'm an experienced investor but a COMPLETE newbie with MYGAs. Picture someone who's been vacationing in hotels suddenly deciding to get a timeshare...that level of "stuff to learn".
I'm realizing that MYGA's are offering superior rates further out, like 5 years plus. I've never bought one before but am thinking of replacing some of my current bond ladder with MYGA's. I've got a big chunk devoted to bond ladder, consisting of TIPs, Nominal treasuries and a couple of agency bonds, supplemented with Bullet Shares IG ETFs. But sheesh, the MYGAs at 5 years plus are 5.5% and higher for 7-10. This is equal to the BulletShares bond ETFs! And I can control the tax hit a little easier.
So I'm thinking of replacing at LEAST the investment grade corporate bulletshares funds, and maybe more. Should I just pick an A or above rated company online and get the ball rolling or is there some more due diligence? Is there anything to miss here? If the company goes "belly up" I believe the principal is covered by insurance?
TIDBITS: 58 & 57 year old couple, 8-10 years in salary covered in bonds (TIPs, notes, agencies and funds) plus 2 apartment buildings paying us 50% of our salary (if needed), so our "ladder" is flexible.
I'm realizing that MYGA's are offering superior rates further out, like 5 years plus. I've never bought one before but am thinking of replacing some of my current bond ladder with MYGA's. I've got a big chunk devoted to bond ladder, consisting of TIPs, Nominal treasuries and a couple of agency bonds, supplemented with Bullet Shares IG ETFs. But sheesh, the MYGAs at 5 years plus are 5.5% and higher for 7-10. This is equal to the BulletShares bond ETFs! And I can control the tax hit a little easier.
So I'm thinking of replacing at LEAST the investment grade corporate bulletshares funds, and maybe more. Should I just pick an A or above rated company online and get the ball rolling or is there some more due diligence? Is there anything to miss here? If the company goes "belly up" I believe the principal is covered by insurance?
TIDBITS: 58 & 57 year old couple, 8-10 years in salary covered in bonds (TIPs, notes, agencies and funds) plus 2 apartment buildings paying us 50% of our salary (if needed), so our "ladder" is flexible.