Basic Retirement Planning

Variable annuities are sold by prospectus. Please consider the investment objectives, risks, charges, and expenses carefully before investing. The prospectus, which contains this and other information about the variable annuity contract and the underlying investment options, can be obtained from your financial professional. Be sure to read the prospectus carefully before deciding whether to invest.

Annuities

Key strengths

Interest generated by an annuity accrues tax deferred until withdrawn
You can receive payments from the annuity for your entire lifetime, regardless of how long you may live¹
There are normally no contribution limits
There are many different types of annuities to choose from
You pay taxes only on the earnings portion of annuity payments
At death, proceeds from an annuity pass free from probate to your named beneficiary

Key tradeoffs

Annuities carry fees and expenses
May have limitations, exclusions, holding periods, termination provisions, and terms for keeping the policy in force
May have surrender charges
Contributions are not tax deductible
There may be tax penalties for early withdrawals prior to age 59½ (subject to exceptions)
Once you elect a specific distribution plan, annuitize the annuity, and begin receiving payments, that election is usually irrevocable (with some exceptions)

Important: Annuities are long-term, tax-deferred investment vehicles intended to be used for retirement purposes. Any gains in tax-deferred investment vehicles, including annuities, are taxable as ordinary income upon withdrawal. For variable annuities, investment returns and the principal value of the available sub-account portfolios will fluctuate based on the performance of the underlying assets, so that the value of an investor's units, when redeemed, may be worth more or less than their original value.

¹Guarantees are subject to the claims-paying ability and financial strength of the issuing insurance company.