Annuities

Annuities are designed primarily to supplement retirement income. Unlike other retirement vehicles, you are not limited on how much you may contribute each year. Another benefit for investing in annuities is that you do not have to pay taxes on earnings until time of withdrawal.

There are two major types of annuities:

Immediate Annuity
With this type of annuity, the contract owner makes a single payment to fund the annuity and then the insurance company begins to pay out. Payments to the contract owner may be paid out on a monthly, quarterly, semiannual, or annual basis.

Deferred Annuity
With this type of annuity, the contract owner does not receive payment until sometime in the future. Deferred annuities may be either fixed or variable.



• Fixed annuities are often used for additional retirement income. These types of contracts have a guaranteed fixed interest rate for a specified period of time, regardless of current market conditions. Fixed annuities can provide stability in your retirement portfolio. Once the contract begins to pay out, the owner receives a fixed payment.
  
• Variable annuities provide more protection against inflation than do fixed annuities. Variable annuities allow their investors the option of investing in professional managed funds. Once the contract begins to pay out, the amount the owner receives will vary depending on the performance of the investments within the annuity.

Withdrawals prior to age 59 ½ are subject to a 10% penalty.

Variable annuities are offered and sold by a prospectus. The prospectus contains more complete information. Please obtain a prospectus and read prior to investing.

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