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What is an Annuity?

An annuity is a unique financial vehicle designed to help people accumulate tax-deferred funds for their retirement and at retirement, if they desire receive a guaranteed stream of income for life.

Annuities come in many different forms to meet your specific needs. An annuity can be deferred or immediate, can provide fixed or variable investment options, and can either be part of a non-qualified or qualified retirement plan. Annuities are long-term savings or investment vehicles.

Fixed Annuities

When it comes to retirement, you want the peace of mind that comes from knowing your money will be there to take care of your needs, no matter what. With a Fixed Annuity, your main priority is on safety of principal and a fixed interest rate, such as a CD. There is no market risk if the market goes down or interest rates decline. Fixed annuities are not FDIC insured and all guarantees are based on the claim-paying ability of the issuer.

Variable Annuities

A variable annuity can play an important role in diversifying your portfolio and helping you reach your retirement goals. Plus, depending on contract design, your money can have the opportunity to continue to grow, even during retirement. In a VA, you have the option to invest your money in subaccount investment options and just like with a fixed annuity, your money can grow tax deferred. Variable annuities give you the flexibility to invest your money or have it in a fixed account. The subaccount investment option in variable annuities are subject to market fluctuations and may lose value.

Immediate Annuities

Immediate annuities are purchased with a single premium, and immediately provide an income stream.

Withdrawals may be subject to income taxes; and, when taken before age 591/2, may be subject to an additional 10 percent federal penalty tax.

Investors should consider the investment objectives, risks, charges, and expenses of a variable insurance product carefully before investing.  Please carefully read the prospectuses for the relevant variable insurance product and its underlying investment options, which contain this and other information about the product.  You can obtain a prospectus from your financial professional.