Annuities provide a way to secure a steady stream of income for retirement. Designed to help manage longevity risk, annuities can offer tax-deferred growth and guaranteed payouts.
Types of Annuities:
- Fixed Annuities – Provide predictable, stable income with a guaranteed interest rate.
- Variable Annuities – Offer investment options with potential for market-based growth.
- Indexed Annuities – Earnings tied to a stock market index with downside protection.
Key Benefits:
✔️ Guaranteed Income – Receive reliable payments for life or a set period.
✔️ Tax-Deferred Growth – Earnings grow without immediate tax consequences.
✔️ Customizable Options – Choose payout schedules and beneficiary protections.
A financial advisor can help determine if annuities fit into your overall retirement strategy.
Fixed and Variable annuities are suitable for long-term investing, such as retirement investing. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Guarantees are based on the claims paying ability of the issuing company. Withdrawals made prior to age 59 ½ are subject to a 10% IRS penalty tax and surrender charges may apply. Variable annuities are subject to market risk and may lose value.
Fixed Indexed Annuities (FIA) are not suitable for all investors. FIAs permit investors to participate in only a stated percentage of an increase in an index (participation rate) and may impose a maximum annual account value percentage increase. FIAs typically do not allow for participation in dividends accumulated on the securities represented by the index. Annuities are long-term, tax-deferred investment vehicles designed for retirement purposes. Withdrawals prior to 59 ½ may result in an IRS penalty, and surrender charges may apply. Guarantees are based on the claims-paying ability of the issuing insurance company.
