An annuity is an insurance contract that provides a regular stream of income to the annuitant, typically during retirement, in exchange for a lump sum or periodic premiums.

A Multi-Year Guaranteed Annuity (MYGA) is a type of annuity that offers a fixed interest rate for a specified period, providing predictable returns and principal protection.

With a MYGA, you make a lump sum payment or periodic premium payments to the insurance company. In return, the insurance company guarantees a fixed interest rate for a specific term, and at the end of the term, you receive the accumulated value of your annuity.

The benefits of a MYGA include guaranteed interest rates, principal protection, and the safety and security provided by the financial strength of the issuing insurance company.

A Fixed Indexed Annuity (FIA) is an annuity that combines features of both fixed and variable annuities. It offers the potential for higher returns linked to the performance of an underlying market index, while also providing downside protection.

In a Fixed Indexed Annuity, your annuity's interest is tied to the performance of a specific market index, such as the S&P 500. If the index performs well, your annuity's value increases. However, if the index performs poorly, your principal is protected from losses.

The benefits of a Fixed Indexed Annuity include potential growth linked to market performance, principal protection from market losses, and a guaranteed minimum interest rate.

Most annuities have surrender periods during which early withdrawals may incur fees or penalties. However, some annuities offer options for partial withdrawals or liquidity provisions. It's essential to understand the terms and conditions of your specific annuity contract.

Annuities offer tax-deferred growth, meaning you won't pay taxes on the earnings until you start receiving withdrawals. However, withdrawals are typically subject to income tax. It's recommended to consult with a tax advisor for personalized tax advice.

Annuities are not suitable for everyone. They are commonly used by individuals who are approaching or in retirement and are seeking steady income, asset protection, and potential growth. It's important to consider your financial goals, risk tolerance, and overall financial situation before investing in an annuity.

Yes, annuities can be structured to provide a death benefit to your beneficiaries. This ensures that a portion of your annuity's value is passed on to your loved ones upon your passing.

In a fixed indexed annuity (FIA), your principal is typically protected from market losses. This means that even if the underlying market index performs poorly, your initial investment is safeguarded. However, it's important to understand that FIAs may still carry certain risks and limitations. Here are a few key points to consider:

- No direct market participation: While FIAs offer the potential for growth linked to the performance of an underlying market index, you do not directly participate in the stock market. Instead, your returns are based on a formula that considers the index's performance.

- Caps and participation rates: FIAs often impose caps or limits on the maximum amount of interest you can earn. For example, if an FIA has a cap of 6%, even if the underlying index gains 10%, your annuity will only be credited with a maximum of 6%. Similarly, FIAs may have participation rates that determine the percentage of the index's gains that are credited to your annuity.

- Limited growth potential: While FIAs provide some potential for growth, the returns may be lower compared to direct market investments. This is because the annuity issuer typically retains a portion of the index's gains to cover expenses and provide guaranteed features.

- Surrender charges and penalties: Most FIAs have surrender periods during which early withdrawals may be subject to fees or penalties. If you withdraw funds from your annuity before the surrender period ends, you may incur charges that can reduce your overall returns.

The yearly free withdrawal feature for a Fixed Indexed Annuity (FIA) can vary depending on the specific annuity contract and insurance company. It's important to review the terms and conditions of the FIA contract to determine the specific details regarding free withdrawals.

In some cases, an FIA contract may offer a free withdrawal provision that allows you to withdraw a certain percentage of your account value each year without incurring surrender charges or penalties. This percentage can vary but is typically around 10% of the account value.

It's essential to note that any withdrawal amount exceeding the allowed free withdrawal percentage may be subject to surrender charges or penalties, depending on the annuity's surrender schedule and terms.

To get accurate and specific information about the yearly free withdrawal feature for a particular FIA, it's recommended to review the annuity contract or consult with a financial professional who can provide detailed insights based on your specific annuity product.