Home / Retirement / Annuities
Three kinds of annuities, one honest comparison.
All three protect your principal. They differ in how your money grows and how long it is committed. We only offer fixed and fixed indexed products, which are insurance contracts, not securities.
| Feature | Multi-year guaranteed (MYGA) | Fixed indexed (FIA) | Fixed indexed with income rider |
|---|---|---|---|
| How it grows | A fixed interest rate locked for the full term, like a CD | Interest credited based on an index, with a cap or participation rate. Never below zero. | Same as FIA, plus a separate guaranteed income value that grows each year you wait |
| Principal | Guaranteed | Guaranteed | Guaranteed |
| Term | 2 to 10 years | 5 to 10 years | 7 to 10 years |
| Access to money | Usually interest only, or up to 10% a year, without penalty | Usually up to 10% a year without penalty | Usually up to 10% a year, or turn on lifetime income |
| Best for | CD money, short horizons, people who want a known number | Growth potential with no market loss, 5 to 15 years out | Turning a lump sum into a guaranteed lifetime paycheck |
| Watch for | Rate resets at the end of the term | Caps limit upside in strong years | Rider fees reduce account growth |
What "guaranteed" means here
Guarantees are backed by the issuing insurance company, which is why we only work with carriers rated A or better by AM Best. State guaranty associations add a further layer of protection up to state limits.
Guaranteed does not mean liquid. Withdrawals above the free amount during the surrender period carry a charge, and withdrawals before age 59½ may carry a tax penalty. An annuity is a long-term commitment and should be sized accordingly.
What a retirement review covers
- What you have saved, where it sits, and what it is costing you
- What you need monthly in retirement and what Social Security covers
- Whether an annuity, an IUL, or neither belongs in the plan
- A written illustration for anything we recommend, with every fee shown
Please note. Annuities are insurance products issued by licensed insurance companies and are not bank deposits, not FDIC insured, and not securities. Guarantees are subject to the claims-paying ability of the issuing insurer. Surrender charges and market value adjustments may apply to early withdrawals. This page is educational and not a recommendation for any specific product. Phil-Am Insurance Agency does not provide tax or legal advice.