Not All Annuities Are the Same
“Annuity” is not one product. It is a category of contracts, each built to solve a different problem. Broadly, they include structures designed to generate income and structures designed to grow money. Part of our job is knowing which tool fits which situation—and being honest when the answer is none of them.
Income-Focused Annuities
These exist to turn a sum of money into a reliable paycheck you cannot outlive, or into payments for a period you choose.
Single Premium Immediate Annuities (SPIAs): Income begins shortly after a lump-sum premium. They may suit someone who needs income now and values certainty over flexibility.
Deferred Income Annuities (DIAs): Income begins at a future date, often producing a larger eventual payout and creating a known income floor later in retirement.
Safe Growth-Focused Annuities
These are designed to grow money with principal protection from market losses. Some offer optional riders that can later create guaranteed income.
Multi-Year Guaranteed Annuities (MYGAs): A fixed interest rate for a defined term, with tax-deferred growth and no market exposure.
Fixed Indexed Annuities (FIAs): Principal is protected from market loss while interest is credited using a market index, subject to a cap, participation rate, or spread.
Risk-Based Growth Annuities
Variable Annuities: Account values are tied directly to market-based subaccounts and can lose value. They are not part of the strategies we typically use, but we explain how they compare when relevant.
How We Determine What Is Right—If Anything
We start with your numbers: what income you need, when you need it, what assets already cover that need, and what happens if the market drops sharply just before retirement.
Then we compare what a specific dollar amount can do in the market versus inside a protected structure, including the trade-offs. Sometimes the math points to an annuity. Sometimes it points to a small allocation. Sometimes it points to no annuity at all.