Watch this clear, plain-English explanation of how annuities work — the different types, pros and cons, and how they fit into your retirement plan.
Adjust the sliders below to see how your initial investment could grow — and what monthly income you might collect — with a Fixed Indexed Annuity over 10 years.
⚠️ This chart is for illustrative purposes only and does not represent a guarantee of returns. Actual annuity performance depends on the specific product, carrier, index performance, caps, participation rates, and fees. Fixed Indexed Annuities have a 0% floor — you cannot lose principal due to market downturns. Consult Peter Joseph for a personalized annuity illustration. Not tax or legal advice.
Understanding the differences helps you choose the right product for your retirement goals.
Earns a guaranteed interest rate — similar to a bank CD but with tax-deferred growth. Predictable, stable, no market exposure. Best for conservative savers who want certainty and a known rate of return.
Growth linked to a stock market index (like the S&P 500) with a 0% floor — you never lose money due to market downturns. Cap and participation rates limit upside but protect your principal. Most popular annuity type today.
Pay a lump sum and start receiving guaranteed monthly income almost immediately. Like turning your savings into a personal pension. Ideal for retirees who want predictable income starting right away.
Contribute now and receive income starting at a future date — such as age 80. A cost-effective way to insure against the risk of outliving your money in extreme old age. Sometimes called a "longevity annuity."
Invested in sub-accounts similar to mutual funds. Higher growth potential — and higher risk. Value can decrease if investments perform poorly. Often includes optional riders that guarantee a minimum income regardless of performance.
Surrender period — typically 5–10 years; early withdrawals may trigger fees. Free withdrawal — most allow 10%/year without penalty. Income riders — guarantee a minimum income stream. Death benefit — beneficiaries receive at least what you put in.
Peter Joseph provides a complimentary annuity analysis — no obligation, no pressure. Find out if an annuity fits your retirement income strategy.