Bonds and fixed indexed annuities are both used for the conservative portion of a retirement plan, but they respond very differently to interest rates and markets.
This guide compares them on risk, growth potential, and income.
How each one works
Bonds as loans with interest versus FIAs as insurance contracts with index-linked crediting.
Interest-rate and market risk
How bond values can fall when rates rise, while an FIA's principal is protected.
Growth potential
Comparing yield from bonds with index-linked crediting in an FIA.
Income and access
Liquidity differences and income-generating features.
Using them together
How some plans use both for different roles.
This guide is for general educational purposes only and is not financial, tax, or legal advice. Tim Hartle is an independent insurance professional. Annuity guarantees are subject to the claims-paying ability of the issuing insurance company and are not FDIC insured. Rules and product features vary by situation and by state. Please consult a qualified advisor about your own circumstances.