Fixed & Variable Annuities

Variable Annuities

What is a Variable Annuity?

A variable annuity is a long-term contact between you as the investor and the insurance company which combines investment and protection into a single financial product to help address your needs. They are designed to help provide you with retirement income.

There are generally two types of variable annuities: qualified and non-qualified. If a variable annuity is purchased through an IRA or other qualified plan it will not provide any additional tax advantages (other than the advantages which that plan already provides). Non qualified annuities avoid income tax fees until distributions are made.

Purchases & Withdrawals

Withdrawals will first come from any contract gains and may reduce the death benefit, optional benefits or contact value. Taxable distributions are subject to ordinary income tax and may be subject to a federal income tax penalty if made prior to 59 1/2 years of age. Certain qualified plans may require distributions to begin by age 70 1/2.

Choosing the Right Fixed Annuity?

Fixed annuities provides a guarantee between you and the insurance company based on both the rate of return (interest rate) and the payout to you as the investor. The predictability of a fixed annuity make it a very popular option for investors who want a guaranteed income stream to supplement their other investment and retirement income. Each contract will explain how and when interest rates may adjust and the terms of the payouts.

We are here to help in your selection of the appropriate investment products for you. It is important to consider your holistic investment and retirement goals when making the right selection. Contact us today to start the discussion on your fixed annuity options.

Variable Annuities are long-term investments designed for retirement purposes and are sold by prospectus. Investors should consider the investment objectives, risks, charges, and expenses of the investment company carefully before investing. This, as well as other important information, is contained in the prospectus. Please read it carefully before investing or sending money. Annuities are not insured or guaranteed by the FDIC. Shares can fluctuate in value and, when redeemed, may be worth more or less than their original cost. Withdrawals from Variable Annuities made prior to age 59 1/2 may be subject to 10% IRS penalty charges and/or surrender charges. Early withdrawals have the effect of reducing the death benefit and cash surrender value. For more information, or to request a prospectus, contact your investment representative or the insurance company.

Fixed annuities are long-term investments designed for retirement purposes. Guaranteed interest rates are based on the claims-paying ability of the underlying insurance company. Surrender charges may apply. Withdrawals are subject to ordinary income taxes, and if made prior to age 59 1/2 may be subject to a 10% penalty. Additional benefits and riders may increase the cost of the premium or lower the interest rate. Tax deferral is of no additional benefit if annuity is held in a retirement account such as an IRA or 457 (b) plan.