If you have ever heard the advice not to put all your eggs in one basket, the annuity ladder applies that wisdom directly to retirement savings. Instead of depositing everything into a single annuity with one fixed rate and one maturity date, you spread funds across multiple annuities with different terms — creating a rolling series of maturity dates that gives you flexibility, liquidity, and the potential to capture better rates over time.

How the Ladder Works

Imagine you have $300,000 to allocate to conservative, protected savings. Instead of committing it all to one six-year MYGA, you split it:

Every two years, one MYGA matures. At each maturity you have full flexibility: spend the proceeds if you need income, roll into a new MYGA at current rates, or redirect to a different vehicle entirely. You are never more than two years from an accessible maturity.

Why a Ladder Beats a Single Large Commitment

Locking everything into one long-term MYGA exposes you to two risks: rate risk (what if rates rise significantly after you lock in?) and liquidity risk (what if your circumstances change before maturity?). A ladder mitigates both. You can re-evaluate your strategy at each maturity point as rates, markets, and personal circumstances evolve.

Every 2 yrsAccess to maturing funds with no surrender charges
Rate captureRoll maturing funds at prevailing rates each cycle
Full flexibilityAdjust the strategy at each maturity point

Laddering FIAs for Lifetime Income

The ladder concept also applies to Fixed Index Annuities with income riders. By starting income riders at staggered ages — activating income from one FIA at 68, another at 72, a third at 76 — you can create a rising income stream over time that keeps pace with increasing healthcare costs and inflation in later retirement years.

Combining MYGAs and FIAs in One Ladder

A practical hybrid approach uses MYGAs for shorter rungs of the ladder (near-term liquidity and certainty) and FIAs for longer rungs (growth potential and eventual lifetime income). This combines the predictability of MYGAs with the upside and income features of FIAs within a single coordinated strategy.

Marc's note: The ladder strategy works best when you have enough to meaningfully split across multiple products — generally $100,000 or more. Below that threshold, keeping it simple with one well-chosen MYGA often makes more sense than added complexity.

Want to See a Ladder Built Around Your Specific Numbers?

Marc can design a custom ladder using real carrier rates and terms tailored to your retirement timeline — completely free.

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