Are Annuities Safe? A Straightforward Guide from “That Safe Money Guy”
By David Wynne, Owner – Live Well Benefit Advisors (South Carolina)
When people ask me, “Are annuities safe?” what they’re really asking is: Can I rely on this money when I need it most? As someone who’s built a practice around protecting retirement savings, I’ll give you the honest answer—annuities can be very safe when they’re used correctly and matched to the right goals.
Let’s break that down in plain English.
What Makes Annuities “Safe”?
Annuities are insurance products, not market investments. That means your guarantees come from the financial strength of the insurance company, not from stock market performance.
With fixed annuities, including Fixed Index Annuities (FIAs) and MYGAs:
Your principal is protected from market losses
Your growth is either guaranteed or tied to an index (without downside risk)
Your money grows tax-deferred
There are also state guaranty associations that provide a layer of protection (within limits), but the real key is choosing strong, highly rated insurance carriers.
Lifetime Income FIAs: Your Personal Pension
One of the biggest fears I hear is running out of money. That’s where Lifetime Income FIAs come in.
These products are designed to create a stream of income you can’t outlive—no matter how long you live or what the market does.
Why my clients choose them:
They want a dependable “paycheck” in retirement
They don’t have a pension (or want to supplement one)
They value protection over speculation
For many people, this becomes the foundation of their retirement plan—the part that covers essential expenses like housing, food, and healthcare.
Growth & Accumulation FIAs: Grow Without the Rollercoaster
Not everyone needs income right away. Some clients come to me looking for safer growth.
Accumulation-focused FIAs are built for that stage.
Here’s what makes them appealing:
Market-linked growth potential
Zero downside risk (you don’t lose when the market drops)
Tax-deferred compounding
Think of these as a middle ground between “playing it too safe” in a savings account and taking on too much market risk.
MYGAs: Simple, Predictable, and Steady
If you like knowing exactly what you’ll earn, MYGAs (Multi-Year Guaranteed Annuities) are about as straightforward as it gets.
They function a lot like a CD—but often with better rates and tax advantages.
Why people choose MYGAs:
Guaranteed interest rates for a set period
No market exposure
A safe place to park money short- to mid-term
For conservative investors or retirees, this can be a great tool for preserving and growing money without surprises.
Who Are These Strategies Really For?
In my experience, the people who benefit most from these types of annuities are:
Pre-retirees (ages 50–65) who want to protect what they’ve built
Retirees looking for reliable income
Conservative investors tired of market volatility
Anyone who values peace of mind over chasing high-risk returns
Why I Do What I Do
As “That Safe Money Guy,” my focus is simple: help people protect their retirement and create income they can count on.
Annuities aren’t the answer to everything—but when used correctly, they can solve some of the biggest problems in retirement planning:
Running out of money
Losing money in market downturns
Not having predictable income
Final Thought
Safety in retirement isn’t about avoiding all risk—it’s about managing it wisely.
If you’re nearing retirement or already there, it may be time to look at strategies that prioritize protection, income, and stability. That’s where tools like FIAs and MYGAs can really shine.
If you have questions or want to see how this could fit into your situation, I’m always here to help.
— David Wynne
“That Safe Money Guy”
Live Well Benefit Advisors
