Annuities Can Help Protect Your Retirement Savings
Planning for retirement? An annuity is designed to ensure you will have the funds needed to meet your long-term retirement goals. There are three basic types of annuities. The best one for you depends on your individual situation and needs.
Fixed Annuity – Pays you no less than a specified interest rate. For more conservative investors, a safe and steady way to grow assets at a fixed rate of interest with a tax deferral.
Variable Annuity – You choose from a wide range of investment options, professional portfolio management, tax deferral, income options, and death benefits. Variable annuities can help increase your income for retirement and make it last a lifetime.
Immediate Income Annuities – Want to create a secure income during retirement? Make one purchase payment and begin receiving annuity payments soon after. You can choose the payout period, including a lifetime income.
Additional Considerations Include:
- Company rating – Is the company reputable and highly rated?
- Premium protection – Will it pay back as much as you invested?
- Cost of living protection – Is inflation decreasing your future lifestyle?
- Joint and survivor benefits – Are your loved ones protected?
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Annuities are long-term, tax-deferred investments designed for retirement purposes. Ordinary income tax is due on earnings withdrawn. Withdrawals prior to age 59 ½ may incur a 10% federal tax penalty on top of ordinary income taxes. Withdrawals may also be subject to an early surrender fee charged by the issuer. Withdrawals have the effect of reducing the death benefit and the surrender value. All guarantees are based on the claims paying ability of the issuing company. Additionally, variable annuities are subject to investment risks, including the possible loss of principal. Investor units will fluctuate with the performance of the underlying investments, and there may be a gain or loss upon redemption.
Variable annuities are sold by prospectus only. Investors should carefully consider objectives, risks, charges and expenses carefully before investing. The contract prospectus and the underlying fund prospectus contain this and other important information. Investors should read the prospectus carefully before investing. For a copy of the prospectus contact your client advisor.