One Scenario, Two Annuities: How a 70‑Year‑Old’s $100,000 IRA Performs - RMDs & Account Balances

Retirees around Northwest Ohio don’t want theory — they want to see real numbers based on real annuity illustrations.

This article gives you exactly that. In dollars and cents.

Same individual.

Same IRA starting balance.

Same RMD schedule and rules.

Two different annuity strategies.

• Client age: 70

• IRA starting balance: $100,000

• RMDs begin: Age 73

• Goal: Grow safely and meet RMD obligations without market risk

Below, you’ll see how a 10‑year Multi-Year Guaranteed Annuity (MYGA) at 5.5% compares to a Fixed Indexed Annuity (FIA) with a 10.75% S&P 500 annual cap — using the exact same RMD rules starting at age 73.

At the bottom of the page, you’ll find links to both full illustrations so you can review every year, every RMD, and every projected value.

Why This Comparison Matters

Many retirees ask the same question:

“Should I lock in a guaranteed rate, or should I give myself upside with an indexed annuity?”

This side‑by‑side comparison shows how each annuity behaves under real‑world conditions:

• Required Minimum Distributions

• Guaranteed interest vs. capped index crediting

• Projected values

Both products are built for safety — but they grow differently.

ANNUITY 1: 10‑Year MYGA at 5.5% - this is the actual rate available today

HOW IT WORKS

• Interest rate of 5.5% is guaranteed for 10 years

• No market exposure

• RMDs reduce the contract value, but interest continues on the remaining balance

• Predictable, stable growth

KEY TAKEAWAY

Even with RMDs starting at 73, the MYGA’s guaranteed rate keeps the account value growing.

This is the “sleep‑well‑at‑night” option.

ANNUITY 2: Fixed Index Annuity With a 10.75% S&P Annual Cap - again an actual current rate

HOW IT WORKS

• No market losses — zero is the floor

• Upside potential up to 10.75% per year

• RMDs reduce the contract value, but index credits apply to the remaining balance

• Growth depends on market performance, but never below zero

KEY TAKEAWAY

The FIA introduces the possibility of higher returns than the MYGA — especially in years when the S&P 500 performs well.

It’s a safety-first product with growth potential.

View the Full MYGA Illustration (10‑Year, 5.5%)

View the Full FIA Illustration (10.75% Cap)