How a Three Year Fixed Annuity Works

Are you looking for a short-term, safe place to park your retirement funds without locking your money up for an entire decade? A 3-year fixed annuity offers a flexible, short-term commitment that guarantees your principal while providing competitive interest growth protected from market crashes. In this clear and concise video, Shawn from The Annuity Expert breaks down how 3-year fixed annuities work during their term and what happens on Day 1 of Year 4 when your money becomes 100% free and clear of surrender charges. He compares the two primary types of short-term fixed annuities available on the market today: 3-Year Multi-Year Guaranteed Annuities (MYGAs): Function just like a bank CD. You deposit a lump sum and receive a fixed, guaranteed interest rate locked in for all 3 years. 3-Year Fixed Index Annuities (FIAs): Allow you to link your growth to a market index (like the S&P 500) to capture higher potential upside, while maintaining a 100% floor—guaranteeing you never lose a single dollar of principal if the stock market declines. Shawn outlines your exit and rollover options once the 3-year surrender period finishes, explaining how to cash out penalty-free, transfer tax-free via a 1031/1035 exchange into a higher-yielding annuity, or renew for another term. 👉 Compare today's top daily-updated 3-year annuity rates and options here: https://www.annuityexpertadvice.com/types-of-annuities/terms/3-year-annuities/ 📞 Call our team for free, no-obligation advice to safely evaluate your short-term annuity options at: 770-755-1565 ⏱️ Video Chapters: 0:00 - Intro: How does a 3-year fixed annuity work? 0:29 - Day 1 of Year 4: Full penalty-free access to your principal and gains 0:47 - The main types of 3-year annuities (MYGA vs. FIA) 1:12 - Option 1: 3-Year MYGA (Bank CD alternative with guaranteed yields) 1:52 - Option 2: 3-Year Fixed Index Annuity (S&P 500 growth with zero downside risk) 2:36 - What happens at the end of Year 3? (Cash out, transfer, or renew) 2:48 - Final Verdict: How to get objective, pressure-free advice from The Annuity Expert