Two Very Different Products, One Shared Name
"Annuity" covers a wide range of products, and fixed and variable annuities sit at very different ends of that range. They share some vocabulary — both are insurance contracts, both can provide income — but the way they handle your principal is fundamentally different.
Fixed Annuities: Principal Protection
A fixed annuity — a MYGA or fixed indexed annuity — guarantees your principal. With a MYGA, you earn a set rate for a set term, full stop. With a fixed indexed annuity, your growth is tied to a market index but with a floor of zero: in a down year, you simply earn nothing for that period, but you never lose principal to market performance.
Variable Annuities: Market Exposure
A variable annuity invests your premium in sub-accounts that function similarly to mutual funds. Your account value moves directly with those investments — up in good markets, down in bad ones. Depending on the contract, your principal itself can be at risk. Variable annuities often carry more complex fee structures, including mortality and expense charges, fund management fees, and rider costs layered on top.
Side by Side
| Feature | Fixed Annuity | Variable Annuity |
|---|---|---|
| Principal protection | Guaranteed | Not guaranteed — subject to market performance |
| Growth potential | Set rate or capped index-linked growth | Uncapped, but tied to sub-account performance |
| Complexity | Relatively straightforward | More complex fee and sub-account structures |
| Regulation | State insurance regulation | SEC-registered security, requires a securities license to sell |
Why We Specialize in Fixed Only
Annuity Radar and Devin work exclusively with fixed annuities — MYGAs, fixed indexed annuities, and fixed income annuities. That's a deliberate choice, not an oversight. It reflects a specific philosophy: for the portion of a retirement plan meant to be safe and predictable, principal protection isn't a nice-to-have, it's the entire point.
Variable annuities can be a legitimate tool in the right hands for the right goals — but they're a different product, sold under different licensing (a securities license, not just an insurance license), and they serve a different purpose than what this site is built around.
How to Tell Which One You're Looking At
If a product's growth depends on the performance of an investment sub-account and your principal can decline in value, it's variable. If your principal is protected and your growth is either a set rate or index-linked with a floor, it's fixed. If you're ever unsure which type a product you've been shown actually is, that's a very reasonable question to ask directly.
The Bottom Line
Fixed and variable annuities solve different problems for different people. This site, and Devin's practice, focus entirely on fixed annuities because principal protection is the specific promise we make — and it's easier to keep that promise clearly when it's the only kind of product being discussed.
Questions about your specific situation? Contact Devin for a free, no-pressure conversation. Independent, licensed, and never a call center.