Why Simple Interest May Work Better for You
If you plan to take interest-only withdrawals, simple interest can preserve your future earnings... That’s because withdrawals don’t reduce your interest base; your interest is still calculated on the initial premium. However, with compound interest, withdrawing interest today reduces what you earn in the future.
Simple vs Compound: What's the Difference?
Compound interest applies interest on both your initial premium and any interest that’s previously been credited. Over time, this compounding effect grows your earnings .... as long as the funds are maintained in the contract.
Simple interest, by contrast, is calculated only on your initial premium.
You won’t earn interest on your interest, but you’ll typically receive a greater crediting rate
Simple Wins When You Withdraw
Most multi-year guaranteed annuities (MYGAs) use compound interest. Knighthead Life’s Staysail MYGA takes a different approach with simple interest. This structure often results in a higher advertised rate, and it may be a better fit for your retirement goals, especially if you plan to take withdrawals
Start winning simply today.....
