Investing - Theory, News & General • Re: MYGA followed by SPIA, versus a DIA

Suppose there was money I wanted to protect from market risk, and that I intended to annuitize for spending money eventually, on X date. Is it generally better to……

If you’re absolutely, positively certain that you want to start a monthly income at a future date, AND if you’re absolutely, positively certain what that date is, I’d get competitive bids on a DIA and an indexed annuity with a withdrawal rider, and choose the highest monthly benefit.

But if I’m less than 100% positive on both points, I’d probably defer the annuitization decision and buy a MYGA now. That preserves my options whether to annuitize and when.

I think I grasp it right in that rolling MYGAs and then buying a SPIA some time from means that the buyer bears the reinvestment and interest rate risk, while a person buying a DIA starting, say, 15 years from now is receiving a locked-in payment amount, and the insurance company bears the risk that interest rates drop between now and then.

Do insurance companies generally price their SPIAs more aggressively than a similar DIA, or conversely, are there companies that offer a good DIA but don't participate in SPIAs at all? I've always understood the less complexity the better in comparing annuities.

Statistics: Posted by Makefile — Sat Sep 26, 2026 9:08 pm