👵 How much more retirement income would I get with an FIA over a MYGA?

When clients have a lump sum of safe money and want predictable retirement income, they often ask whether they should choose a Multi-Year Guaranteed Annuity (MYGA) or a Fixed Indexed Annuity (FIA). This calculator compares the two to see exactly how much more guaranteed income you could generate.

As Dr. Amanda puts it, it is not about which one is better, it is about which one fits your income goals. If you had $500,000 to put into an annuity, would you choose a 5.5% guaranteed rate for 10 years or a guaranteed paycheck for life?

The core difference between these annuities is what happens when you die. A MYGA preserves your original principal for your heirs. What we're looking at here for a MYGA is a protected fixed rate with no market exposure, allowing you to only withdraw the interest.

An FIA provides higher lifetime income by slowly spending down that principal. Dr. Amanda contrasts this with traditional investing: if you were to take your balance and withdraw 4% per year, you would have less income and it wouldn't be guaranteed for life.