Home / Retirement / Annuities
Compare fixed annuity options.
These fixed annuity contracts differ in interest crediting, access to money and income features. Contract guarantees depend on the issuing insurer. Withdrawals, charges and adjustments can reduce the amount you receive.
| Feature | Multi-year guaranteed (MYGA) | Fixed indexed (FIA) | Fixed indexed with income rider |
|---|---|---|---|
| How it grows | A stated interest rate for a specified guarantee period; renewal terms vary. Not a bank deposit. | Index-linked interest under contract limits. A zero crediting floor does not prevent fees or withdrawals from reducing account value. | FIA crediting plus an optional income rider. The income calculation base is not cash value; growth rules and fees vary. |
| Guarantees | Contract minimums depend on the insurer; early access may reduce proceeds. | No direct stock-market investment; charges and withdrawals can reduce value. | Income benefits depend on rider conditions and the insurer; excess withdrawals may reduce benefits. |
| Commitment | Check the rate guarantee and surrender periods. | Check the surrender period and renewal terms. | Check the surrender period, income start date and rider conditions. |
| Access to money | Withdrawal allowances vary; charges and taxes may apply. | Check withdrawal allowances, surrender charges and market value adjustments. | Check how withdrawals affect both cash value and future income. |
| Question to ask | Can I leave this money committed for the contract period? | Do the crediting limits and access restrictions fit my needs? | Does the income benefit justify its costs and restrictions? |
| 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 depend on the issuing insurer’s financial strength and claims-paying ability and on compliance with the contract. Review the insurer, the contract and any rider separately.
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. The fixed and fixed indexed annuities discussed here are insurance contracts, not bank deposits, not FDIC insured and not securities. Other types of annuities have different risks. 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.