Two very different rides
Money invested directly can grow faster over long stretches — and can also fall hard, exactly when you may need it. An FIA participates when the index rises (up to a cap) and holds flat when it falls.
The math of not losing
Losses hurt more than equivalent gains help. A 50% drop needs a 100% gain to break even. By crediting 0% instead of a loss, an FIA sidesteps the deepest holes — and holes force retirees to sell low.
- Market: higher ceiling, no floor. Great while accumulating.
- FIA: lower ceiling (the cap), solid floor (0%). Great for money you'll rely on soon.
It's rarely all-or-nothing. Many retirees keep growth assets in the market and a protected FIA sleeve.
When the FIA wins the comparison
In calm, rising markets, direct investing usually wins. In choppy or falling markets — especially early in retirement — the protected floor can leave an FIA holder ahead, and always calmer.
Try it yourself
Use the calculator on our home page to model different rates and horizons, then book a consultation to compare real products.