Should You Use a Fixed Indexed Annuity for Growth and Income?
If you’re looking for a retirement solution that offers both safety and potential upside, a fixed indexed annuity (FIA) might be worth a serious look. FIAs have become increasingly popular for retirees who want market-linked growth without the risk of losing principal. Unlike variable annuities, FIAs are not invested directly in the stock market—instead, your returns are tied to the performance of an index, such as the S&P 500, with built-in protection from losses.
FIAs also give you flexibility. You can choose options with income riders that guarantee lifetime payments, no matter how long you live. Or you can grow the value inside the contract tax-deferred, knowing that even in down years, your account won’t lose money due to market drops. With some plans offering bonuses or roll-ups for income riders, the ability to generate predictable, long-term retirement income becomes even more powerful.
Whether you’re approaching retirement or already there, an FIA can be used to diversify your savings, generate guaranteed income, or protect a portion of your nest egg. But with so many options and contract variations, it’s critical to evaluate each plan carefully.
At Diversified Insurance Brokers, we compare FIAs across more than 75 top-rated insurance carriers—helping you find the right balance of protection, growth, and income based on your retirement goals.
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FAQs: Should You Use a Fixed Indexed Annuity for Growth and Income?
What is a fixed indexed annuity (FIA)?
A fixed indexed annuity is an insurance contract that provides principal protection while offering interest growth linked to a market index.
Can a fixed indexed annuity provide income for life?
Yes. Many fixed indexed annuities offer optional income riders that can provide guaranteed lifetime income.
How does growth work in a fixed indexed annuity?
Interest is credited based on index performance using caps, spreads, or participation rates, with no loss in down market years.
Are fixed indexed annuities safe?
They provide protection from market losses, but guarantees depend on the financial strength of the issuing insurance company.
Is an FIA better for growth or income?
FIAs are commonly used for income planning, but can also serve as a conservative growth vehicle when income is deferred.
What are the downsides of a fixed indexed annuity?
Potential downsides include surrender charges, limits on upside growth, and added costs for optional income riders.
Who is a good candidate for a fixed indexed annuity?
FIAs are often suitable for individuals seeking a balance of growth potential, income guarantees, and protection from market volatility.
About the Author:
Jason Stolz, CLTC, CRPC, is a senior insurance and retirement professional with more than two decades of real-world experience helping individuals, families, and business owners protect their income, assets, and long-term financial stability. As a long-time partner of the nationally licensed independent agency Diversified Insurance Brokers, Jason provides trusted guidance across multiple specialties—including fixed and indexed annuities, long-term care planning, personal and business disability insurance, life insurance solutions, and short-term health coverage. Diversified Insurance Brokers maintains active contracts with over 100 highly rated insurance carriers, ensuring clients have access to a broad and competitive marketplace.
His practical, education-first approach has earned recognition in publications such as VoyageATL, highlighting his commitment to financial clarity and client-focused planning. Drawing on deep product knowledge and years of hands-on field experience, Jason helps clients evaluate carriers, compare strategies, and build retirement and protection plans that are both secure and cost-efficient.
