disneysteve
Thinks s/he gets paid by the post
- Joined
- Feb 10, 2021
- Messages
- 2,386
I've read a few previous threads about MYGAs and think I have a pretty good understanding of them. I'm curious how you all employ them in your portfolios. Do you use them instead of CDs? Do you ladder them, and if so, what's your approach?
Other than the company rating and the interest rate, what other factors do you look at? I know they have different early withdrawal penalties (which I'm not overly concerned with), different policies on partial withdrawals during the term, and some other differences.
We currently hold 2 CDs and a third one just closed 2 weeks ago and I didn't renew it so the cash is sitting in our Ally account. Looking at the MYGAs, even the 2-yr ones are paying way more than CDs. This would definitely be for money we have no near-term need for, and if we build a ladder and get to having one come due every year starting in a couple of years, that would be great.
Anything else I should be watching out for?
Other than the company rating and the interest rate, what other factors do you look at? I know they have different early withdrawal penalties (which I'm not overly concerned with), different policies on partial withdrawals during the term, and some other differences.
We currently hold 2 CDs and a third one just closed 2 weeks ago and I didn't renew it so the cash is sitting in our Ally account. Looking at the MYGAs, even the 2-yr ones are paying way more than CDs. This would definitely be for money we have no near-term need for, and if we build a ladder and get to having one come due every year starting in a couple of years, that would be great.
Anything else I should be watching out for?