What are annuities? 

Annuities help retirees turn uncertainty into confidence by providing reliable income, no matter how the markets perform. Today’s annuities are flexible, with customizable features and growth options designed to fit your lifestyle—whether that means traveling the world, starting a new venture, or simply enjoying retirement with peace of mind.

Multi-Year Guaranteed Annuity (MYGA)

Conservative savers wanting predictable returns.

Pros

✔️ Guaranteed fixed interest for 3–10 years 

✔️ Safe, predictable growth 

✔️ Tax-deferred accumulation 

✔️ Typically higher yields than CDs

Cons

⚠️ Limited liquidity & withdrawal penalties 

⚠️ Locked interest rate (no benefit if rates rise) 

⚠️ No market upside

Fixed Indexed Annuity (FIA)

Retirees seeking growth potential with safety.

Pros

✔️ Growth linked to market index with downside protection 

✔️ Principal protection (no market losses) 

✔️ Tax-deferred accumulation 

✔️ Optional income and death benefit riders

Cons

⚠️ Upside limited by caps, spreads, or participation rates 

⚠️ More complex than fixed annuities 

⚠️ Longer surrender periods 

⚠️ Rider costs can reduce returns

Fixed Annuity 

Those who want guaranteed, steady growth.

Pros

✔️ Guaranteed fixed interest rate 

✔️ Safe, predictable growth 

✔️ Simple and easy to understand
✔️ Tax-deferred accumulation

Cons

⚠️ Lower potential returns than FIAs or variable annuities 

⚠️ Locked interest rate (no benefit if rates rise) 

⚠️ Limited liquidity 

⚠️ No market upside

Deferred Annuity

Long-term planners preparing for future income.

Pros

✔️ Allows accumulation of funds for future income 

✔️ Tax-deferred growth until withdrawals 

✔️ Flexible payout options (lump sum or lifetime income) 

✔️ Can be fixed, indexed, or variable

Cons

⚠️ Long-term commitment 

⚠️ Surrender charges for early withdrawals 

⚠️ May have fees depending on type 

⚠️ More complex than CDs or cash accounts

Cash Deposits 

(Savings/CDs/Money Market)

Those prioritizing liquidity & short-term needs.

Pros

✔️ Maximum liquidity & easy access 

✔️ FDIC insured (within limits) 

✔️ No surrender charges

✔️ Simple & transparent

Cons

⚠️ Lower interest rates (often below inflation) 

⚠️ Taxable annually 

⚠️ No long-term growth 

⚠️ No guaranteed income

Single Premium Indexed Annuity

Pros

✔️ Market-linked growth potential with downside protection

✔️ Principal protection (no loss from market declines)

✔️ Customizable with riders (income, legacy, etc.)

✔️ Tax-deferred growth

Cons

⚠️ Caps & spreads limit upside potential

⚠️ More complex than CDs/MYGAs

⚠️ Long surrender periods reduce flexibility

⚠️ Rider costs may lower returns

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