Fixed Indexed Annuities vs. MYGAs: Which Financial Vehicle Fits Your 10-Year Plan?
February 23, 2026
One of the biggest challenges people face when planning for the next decade is balancing certainty with opportunity. You want your money to grow so you don’t fall behind, but you also don’t want to fall victim to the whims of the market. Two financial vehicles that help you do just that are fixed indexed annuities (FIAs) and multi-year guaranteed annuities (MYGAs).
It’s easy to neglect important financial planning conversations when life gets busy. While the year is still young, February presents an ideal time to reset and think about long-term care for loved ones, retirement readiness, and thoughtful financial decisions.
Annuities can help you protect the people you care about most. But with so many different options available, you may be wondering: What’s the difference between fixed indexed annuities and MYGAs when planning for the next 10 years?
What Does a 10-Year Financial Plan Really Need?
A 10-year horizon sits right in the sweet spot between short-term safety and long-term retirement income planning, without being so far out that it feels disconnected. For many, this time frame allows them to connect with their core values of predictability, protection from market loss, and planning flexibility.
Planning for the next decade isn’t just a numbers exercise. It’s a way to shape the next chapter of your financial life, reflect on your risk comfort levels, and be flexible as life evolves.
How Fixed Indexed Annuities Work Over a 10-Year Time Frame
A fixed indexed annuity offers moderate growth potential and downside protection while protecting your principal from market losses. Depending on the annuity, you can contribute a lump sum or make periodic premium payments.
Fixed indexed annuities offer the best of both worlds: They fall between conservative fixed products and risky market-based investments. They’re a way to still participate in the market and experience growth potential — albeit with guardrails.
People often wonder: How accessible is my money? How variable is the growth? And how does this translate into lifetime income later?
Regarding accessibility, most fixed indexed annuities allow a small portion of the value, around 10%, to be withdrawn without penalties after the first year. Remember, a fixed indexed annuity is designed for long-term, not short-term, needs. Withdrawals before age 59 ½ may be subject to a 10% IRS penalty. Consultation with a tax advisor is recommended.
In terms of growth, you’ll need to read the annuity contract for specifics. While growth based on the index may be limited, in return, you get protection from market losses, which lowers your risk.
Once annuitized, the annuity provides a steady stream of predictable payments for a set term (such as 10 years to life, depending on the annuity). Payments can be set up for just one person or for the surviving spouse, too.
Where MYGAs May Fit Into a 10-Year Strategy
MYGAs offer a guaranteed interest rate that’s protected from rate fluctuations. With a 10-year MYGA, that rate is guaranteed for 10 years. With a five-year MYGA, the rate guarantee lasts for five years.
For those who prioritize certainty and simplicity over flexibility, MYGAs are a great solution. You won’t have to weather market swings or guess what interest rates are going to do next. Cash-flow planning is easy because you’ll know what the value will be. A MYGA can be a predictable part of a diverse portfolio that may want to pursue risk elsewhere.
Fixed Indexed Annuities vs. MYGAs: Which Fits Your Plan?
Both MYGAs and fixed indexed annuities can play an important role in your retirement plan. Similar to a bank CD, a MYGA will give you safe, tax-deferred growth over a shorter period with no fees. A fixed indexed annuity can provide you with tax-deferred growth tied to an index with downside protection. Many people use a strategy that combines both, as each has different strengths.
There’s no one-size-fits-all approach. Different individuals have different financial situations, health statuses, income needs, and goals. To find the right solution for your unique situation, we recommend you meet with a licensed professional who can offer informed guidance.
Reflect on these questions to prepare for that meeting:
- Are there any fees I need to know about?
- What riders can I add?
- How much can I take out without incurring penalties?
- How long is the contract term?
- What is my risk tolerance?
- Are there tax implications?
The right option for you depends on how you want the next 10 years to connect to the decades beyond.
Choosing With Confidence, Not Pressure
Planning your financial future with intention is a smart move, and understanding how both MYGAs and fixed indexed annuities work can be an important part of the process. Once you figure out your family’s specific priorities and personal timelines, you can choose the right financial vehicles.
At 1891 Financial Life, we specialize in providing tailored insurance solutions for diverse needs. Our team is equipped to help you navigate these challenges with expertise and compassion. Contact us today for personalized assistance and to have a conversation grounded in trust, education, and long-term care.
About 1891 Financial Life
Our culture is about looking out for you, for others, for family, for the community. That is how we go “Beyond Life Insurance.”
At 1891 Financial Life, we don’t just sell policies, we offer possibilities. We take pride in giving back to the communities we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits, along with social, educational, and volunteer programs designed to respond to community needs. Our commitment to excellence has been recognized by Forbes, naming 1891 Financial Life among “The World’s Best Life Insurance Companies” in 2023 — and for the second time, as one of “America’s Best Life Insurance Companies,” ranking #1 in Term Life Insurance for 2026.
Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs, no matter what stage of life you’re in.