Not every retirement savings vehicle carries the same amount of risk, and they do not all offer the same growth potential either. The chart below lines up common options on a single spectrum, from higher risk with higher growth potential on one end, to principal protection with more limited growth on the other.
A Fixed Index Annuity sits on the principal protection side of this spectrum while still offering the potential for credited growth, which is part of why it can work well for the portion of savings set aside to create guaranteed lifetime income, what we call the Pension Strategy on this site.
This chart is a general, educational comparison of typical risk and growth characteristics by product category. It is not a recommendation to buy, sell, or hold any specific investment, and it does not constitute investment advice. Questions about securities products such as stocks, mutual funds, or bonds should be directed to a licensed securities professional.