No. of Recommendations: 3
I've been looking at them as well. I currently have 3 MYGAs that I got last year. Two are 3 yr, and one is 5 yr. I don't feel comfortable going past 5 yrs and prefer sticking to 3 yrs and A- or better companies.
I've been mapping out income for the next 6 years and with treasuries/TIPs and MYGAs I have that. With the rates seemingly high, I might add 1 or 2 more. I wouldn't go too heavy on them but maybe at most 20% of my portfolio. Currently I'm at less than 15%.
Also, as you probably know, MYGAs purchased with taxable money can be used to defer income by doing a 1035 exchange at the end of the term and avoid paying taxes on the interest. For some people delaying is a good idea. Not sure I would do that.
Rich
