A Multi-Year Guarantee Annuity vs CDs, Mutual Funds and Money Market Funds: Which Belong in Your Portfolio?

As you likely know, diversification is key when it comes to portfolio allocation. Relying solely on stocks or cash may not be enough—depending on your situation, you might want to consider a mix of assets that provide growth, stability, and protection from market exposure. However, when it comes to safe, fixed-rate options, which ones make the most sense?

If you’re weighing the benefits of a Multi-Year Guarantee Fixed Annuity (MYG Annuity) from American National Insurance Company against alternative choices like certificates of deposit (CDs), mutual funds, bonds, or money market accounts, it’s important to understand how each one fits into your financial strategy. Let’s break it down.

MYG Annuity vs. Certificates of Deposit (CDs)

At first glance, a MYG Annuity and a CD look similar. Both offer:

• A fixed interest rate for a set period.
• Protection from market volatility.
• Predictable growth over time.

However, a MYG Annuity has key advantages over a CD:

Advantage of a MYG Annuity vs. CD: An MYG Annuity could be a good fit for those looking for a competitive fixed return and tax-deferred growth over time. It may also be a good option for those over 59 ½ who want to receive ongoing income during the guarantee period with penalty-free withdrawal options.

Learn more: Guaranteed growth made simple

MYG Annuity vs. Bonds

Bonds are often seen as a way to earn a predictable interest rate, but that can depend on the type of bond purchased. Here are some ways that an MYG Annuity is similar to, and differs from, a bond:

Advantage of a MYG Annuity vs bonds: An MYG Annuity provides tax-deferred growth and competitive, guaranteed rates without market exposure. It may also be a good option for those over 59 1/2 who want to receive ongoing income during the guarantee period with penalty-free withdrawal options.

MYG Annuity vs. Mutual Funds

Mutual funds provide long-term growth potential, but they come with market risks; unlike an MYG Annuity. Here’s how they compare:

Advantage of a MYG Annuity vs a mutual fund: A MYG Annuity can provide steady, predictable returns without stock market uncertainties and other fees.

Learn more: Let your money work smarter

MYG Annuity vs. Money Market Funds

Money market funds are often seen as a conservative place to park cash, but how is their growth potential compared to a MYG Annuity?

Advantages of an MYG Annuity vs a money market account: An MYG Annuity typically offers higher growth rates than money markets, especially for long-term holding periods.

Explore your options: Plan confidently today

Which Belong in Your Portfolio?

If you:

• Value stable, guaranteed returns
• Want tax-deferral for long-term growth
• Prefer diversification for a balanced portfolio
• Enjoy DIY planning and products

… then an MYG Annuity from American National Insurance Company may be a good addition to your overall portfolio.

While CDs, mutual funds, and money market funds each have their place, a MYG Annuity offers a unique combination of security, tax-deferral, and predictable growth. For DIY planners who want market protection and predictable returns, it’s a compelling option.

Want to lock in a guaranteed rate while keeping your money working efficiently? Explore a MYG Annuity today from American National Insurance Company and take control of your financial future.

^Disclosures

^{Information herein is not intended to be legal or tax advice. You should consult with your own attorney and tax advisor for your specific circumstance. Current U.S. tax law provides that earnings from an annuity are taxable only upon withdrawal as ordinary income. Any withdrawals in excess of the surrender free amount are subject to surrender charges or market value adjustments.}

^{Penalty-free withdrawals allow up to 10% of the annuity value at the beginning of the year to be withdrawn annually, free of surrender charges. Any withdrawals, including interest-only withdrawals, will reduce the amount of interest credited to your contract. Withdrawals of earnings are subject to income tax. A 10% IRS penalty may be imposed for withdrawals before age 59 1/2.}

^{Interest rates and interest rate guarantee periods are subject to change. At the end of the selected interest rate guarantee period, you can either withdraw all your money without penalty during a special 30-day window or continue the annuity and earn an annual effective interest rate declared annually on the policy anniversary. This special surrender option applies to a full surrender only and is not available for partial withdrawals or systematic withdrawals. American National is a group of companies writing a broad array of insurance products and services and operating in all 50 states. American National Insurance Company was founded in 1905 and is headquartered in Galveston, Texas. Not all products and services are available in all states. Form Series: MYG24; AI20 (Forms may vary by state). CA Form: MYG16(04).}

^{American National Insurance Company, headquartered in Galveston, Texas is licensed to conduct business in all states except New York.}

^{Not FDIC /NCUA insured. Not a deposit. Not insured by any federal agency. No bank/CU guarantee}

^{This content was provided by American National Insurance Company. Kiplinger is not affiliated with and does not endorse the company or products mentioned above.}