Before committing to any annuity, it is critical to compare rates, bonuses, and structure. We strongly encourage clients to benchmark any proposal against today’s competitive offerings.

The defining feature of the F&G 1-2-3 is its income flexibility. Many retirees evaluating a fixed indexed annuity are forced into choosing between immediate income riders or deferred growth structures. This product blends those pathways into one contract. The “Anytime Income” structure allows you to begin withdrawals when you decide, subject to rider rules, while the “Future Income” approach rewards deferral with an enhanced income base. For retirees who are unsure exactly when they want income to begin, that flexibility reduces planning friction. Instead of locking into a narrow income activation window, you maintain optionality. That matters in real life—because retirement timelines change. Some clients work part-time longer than expected. Others face health events that accelerate income needs. A properly structured income rider allows guaranteed withdrawals for life, even if the account value depletes, helping hedge longevity risk in a way traditional investment portfolios cannot guarantee.

Growth potential within the F&G 1-2-3 is tied to index crediting strategies. Unlike variable annuities, you are not directly invested in the market. Instead, interest credits are calculated based on the performance of selected indices—such as the S&P 500 or volatility-controlled indices—subject to caps, spreads, or participation rates. The key advantage is that your principal is protected from market losses. If the chosen index has a negative year, your credited interest for that term is zero—not negative. This zero-floor design is why many conservative retirees choose indexed annuities over direct equity exposure. Over time, avoiding large drawdowns can materially improve retirement income sustainability, especially during the early retirement years when sequence-of-returns risk is highest. If you are comparing structures, reviewing fixed vs. fixed indexed annuities can clarify how declared-rate contracts differ from market-linked designs.

Liquidity is another essential factor. The F&G 1-2-3 typically allows 10% penalty-free withdrawals annually after the first year, giving policyholders access to capital without triggering surrender charges. In addition, health-related waivers—such as confinement or terminal illness provisions—may allow broader access under qualifying conditions. While annuities are designed for long-term retirement planning rather than short-term liquidity, having structured access matters. Understanding how annuity surrender charges work is critical before making a funding decision. Surrender schedules are clearly defined and decline over time. For clients rolling over IRA or 401(k) assets, we also evaluate timing carefully to ensure alignment with retirement objectives and tax strategy. If you are considering repositioning retirement assets, review our guide on 457b rollovers to annuities before proceeding.

Tax deferral is another core advantage. Gains within non-qualified annuities grow tax-deferred until withdrawn. This can allow compounding without annual taxation drag, potentially enhancing accumulation compared to taxable fixed-income vehicles. When income begins, withdrawals are taxed as ordinary income to the extent of gain. For qualified funds (IRA assets), taxation follows standard retirement account rules. If you need clarity around treatment, our breakdown of how annuities are taxed explains the mechanics in detail. Proper tax planning ensures the annuity integrates effectively with Social Security timing, pension income, and required minimum distributions.

Because income planning is central to this contract, we encourage clients to model real scenarios before committing.

The F&G 1-2-3 may be appropriate for individuals who want principal protection, structured income flexibility, and tax-deferred growth, but suitability always depends on time horizon, liquidity needs, and overall retirement design. It is not intended to replace emergency savings or short-term capital. Instead, it functions as an income foundation—one layer within a diversified retirement income strategy. At Diversified Insurance Brokers, we compare this contract against other leading carriers to ensure competitiveness in caps, participation rates, and rider structures. Reviewing top-rated annuity companies helps ensure financial strength and long-term claims-paying ability remain central in the evaluation process.

If you would like a personalized breakdown of how the F&G 1-2-3 compares to other income-focused indexed annuities, we invite you to request a custom illustration.