Annuities

An annuity offers peace of mind as well as retirement security.

There are very few certainties in life - especially when it comes to finances. That's why annuities can be so appealing. Technically, annuities are a contract with an insurance company that can create future payments similar to a personal pension. They can also be an investment tool growing with the markets or with a fixed guarantee with higher returns than most deposit accounts.

1. Annuities are long-term investment vehicles designed for retirement purposes
2. Annuities can offer a steady stream of income lasting the rest of your life
3. Annuity variations help your money grow in different ways:
   • Fixed rate annuities lock in an interest rate for a contractually stipulated period of time upon contract purchase and are not subject to market fluctuations 
   • Fixed Index annuities allow for participation in the upside of the market without experiencing market losses 
   • Buffered annuities cover downside exposure in a market for limited upside 
   • Variable annuities can allow for full participation in the market
4. Annual interest earnings are tax-deferred. Withdrawals are taxed as regular income.
5. You may begin making penalty-free withdrawals at age 59 ½ (Early withdrawals are subject to 10% Internal Revenue Service penalty)