390 Old Country Road
2nd Floor
Garden City, NY 11530

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.



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  • Interest generated by an annuity accrues tax deferred until withdrawn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.

Securities, insurance and advisory services offered through Royal Alliance Associates Inc., member FINRA/SIPC.  Gateway Investments, LLC is a marketing designation.


Royal Alliance Associates, Inc. does not provide tax, or legal advice. The information presented here is not specific to any individual's personal circumstances.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

This communication is strictly intended for individuals residing in the state(s) of AL, AZ, CA, CO, CT, DC, DE, FL, GA, ID, IL, ME, MD, MA, MI, MN, MS, MO, NV, NH, NJ, NM, NY, NC, OH, OK, OR, PA, PR, RI, SC, TX, VA and WI. No offers may be made or accepted from any resident outside the specific states referenced.

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2020.