Annuities

An annuity is a contract between you and an insurance company which provides for future income payments in exchange for your investment now. They are long-term savings vehicles designed to grow and protect your money leading up to retirement and then to turn that money into an income stream you cannot outlive. There are several types of annuities:

• Immediate annuities provide a current source of income.
• Fixed annuities provide a predictable return.
• Index annuities provide a predictable return with growth potential.
• Variable annuities provide the potential for the maximum potential return but also have the most risk.*

Your insurance or financial representative can help you determine how much and what type of annuity may be right for you.

*A variable annuity can be an integral part of clients’ long-term retirement planning strategies, providing direction to help them overcome unnecessary risks and important optional benefits to help protect their financial future. Variable annuities provide a tax-deferral benefit that can work well with clients’ goals of investing for long-term retirement. Variable annuities offer professionally managed investment options, guaranteed death benefits and payment options to meet clients’ needs, but clients should always read the prospectus before investing in variable annuities to make sure they understand the risks and charges involved.