Decision factor	MYGA	FIA	Income annuity	Market portfolio
Direct market-loss exposure	No*	No*	No*	Yes
Contractual lifetime income	Usually no	Often optional	Core purpose	No
Daily liquidity	Limited	Limited	Very limited	Yes
Upside potential	Fixed	Contract-limited	Not primary job	Highest potential
Tax deferral	Yes	Yes	Yes	Depends on account
Inflation / purchasing-power risk	Can be meaningful	Depends on crediting	Depends on payout design	Growth may help, with volatility

* Guarantees are subject to contract terms and the claims-paying ability of the issuing insurer. Bank CD guarantees, where applicable, are different and depend on FDIC rules.

ANNUITY COMPARISON

MYGA vs FIA vs income annuity: different contracts for different jobs.

A MYGA is primarily about predictable accumulation. A fixed indexed annuity adds index-linked crediting potential without direct stock-market exposure. An income annuity is primarily about turning assets into contractual retirement income. The right comparison starts with the job the money needs to do.

Compare My Annuity Options

At a glance

Feature	MYGA	Fixed Indexed Annuity	Income Annuity
Primary job	Predictable accumulation	Protected accumulation with index-linked crediting potential	Contractual retirement income
Direct market-loss exposure	No	No from the referenced index itself	No direct market exposure
Lifetime income	Usually not the main feature	Often available through contract features or riders	Core purpose
Liquidity	Limited	Limited	Often very limited after income begins
Growth potential	Fixed stated rate	Limited by contract crediting terms	Not the main objective

When a MYGA can make sense

A MYGA can fit money that does not need daily liquidity and where the owner values a stated interest rate for a defined period. It should be compared with bank CDs, Treasury instruments and other fixed-income choices on liquidity, tax treatment, guarantees and issuer strength.

When an FIA can make sense

An FIA can fit when the goal is principal protection from direct index losses while retaining some interest-crediting potential linked to an index formula. Caps, participation rates, spreads, surrender provisions and rider costs should be understood before purchase.

When an income annuity can make sense

An income annuity can fit when the priority is converting a portion of assets into contractual income that continues according to the selected payout option. This can be useful when Social Security and pension income do not fully cover essential expenses.

The inflation question

Cash, many bank CDs and many bonds can lose purchasing power if their after-tax yield does not keep pace with inflation. Annuities can also face inflation risk if income or credited value does not keep pace with rising costs. That is one reason retirement plans often combine income assets with growth assets.

The best first question

Do not start with the carrier or headline rate. Start with: What job does this money need to do?

See the Retirement Paycheck Strategy →

Read the full annuity guide →