A variable annuity is a tax-deferred investment product that allows you to maintain control of your money while staying invested in the market. A variable annuity can provide you with a lifetime income stream and a death benefit for your loved ones. Guarantees are based upon the claims paying ability of the issuing insurance company.

With a variable annuity, you can either start putting a little away at a time for a long-term goal, such as retirement, or invest with one purchase payment. Over the years, your contract value has the potential to accumulate tax-deferred before you begin your income stream.

What are the potential benefits of purchasing a variable annuity?

• Lifetime income. Your variable annuity contract can provide you with a lifetime income stream when you enter the annuitization phase of your contract. In addition, if your contract has certain optional riders, you can begin to receive a lifetime income stream upon entering the lifetime annuity period.
• Tax-deferred growth. You do not pay taxes on any investment gains in your annuity until you begin taking withdrawals.
• Tax-free transfers among portfolio options. Unlike other investment vehicles, variable annuities allow you to move assets from one portfolio to another without being taxed on any gains you’ve achieved, subject to limitations described in your contract.
• Protection for your beneficiaries. When you pass away, your beneficiaries may be eligible to receive a death benefit. Your beneficiary may also be able to continue the contract upon your death.
• Optional riders. There are a variety of optional riders that will allow you to customize your contract to fit your individual situation.

Is a variable annuity right for me?
A variable annuity might be right for you if you want to protect your investment without sacrificing market exposure and access to income.

Phases of an annuity: There are two phases to a variable annuity: accumulation (pay in) and annuitization (pay out).

• Accumulation phase (pay in) – During your variable annuity’s accumulation phase, you want your Contract Value to increase as much as possible. To help you do this, we offer a variety of portfolio options to invest your purchase payments. You may continue making purchase payments throughout the life of your contract. During this phase, you may also transfer your money between portfolios (subject to limitations set forth in your contract) without paying current tax on any investment gains.
• Optional access to income – Even during the accumulation phase, you may need access to the money in your annuity.You can choose to take a single withdrawal, or set up a series of systematic withdrawals (subject to limitations stated in your contract).
• Annuitization (pay out) – When you are ready to turn your annuity into a lifetime income stream, you’ll choose when and how.If you choose to annuitize your contract, the accumulated Contract Value will be converted into an income stream based on the payment option you elect. There are a variety of payment options available to you, including lifetime payouts and payouts for a guaranteed amount of time. The amount of each payment will depend, in part, on the length of time you select for receiving payments.

Here is a helpful resource to learn more about this subject.

Variable Annuities: Learn about retirement planning

For additional information, or to determine if a variable annuity is right for you, please contact us to talk with a Financial professional.

 Fixed index annuities (FIAs) offer several advantages for investors seeking principal protection, potential for growth, and retirement income.

 Here are some of the key advantages of fixed index annuities:

Principal Protection: FIAs offer principal protection, meaning that the initial investment is guaranteed by the insurance company, subject to the claims-paying ability of the insurer. This can provide investors with peace of mind knowing that their principal is protected from market downturns.

Potential for Growth: While FIAs provide downside protection, they also offer the potential for growth through participation in the performance of a market index, such as the S&P 500. However, the growth potential is typically limited by participation rates, caps, or other factors specified in the annuity contract.

Tax-Deferred Growth: Earnings within FIAs grow tax-deferred, meaning that investors do not have to pay taxes on the investment gains until they make withdrawals from the annuity. This tax deferral can help investors maximize the growth of their retirement savings over time.

Lifetime Income Options: FIAs often offer optional riders or features that provide guaranteed lifetime income payments, regardless of market performance or how long you live. These income riders can help investors create a predictable stream of retirement income to supplement other sources of retirement income, such as Social Security and pensions.

Flexibility: FIAs may offer flexibility in terms of contribution amounts, investment options, and withdrawal strategies. Some annuities allow investors to make additional contributions over time, while others offer various payout options, including lump-sum withdrawals, systematic withdrawals, or annuitization.

Death Benefit Protection: FIAs typically provide a death benefit that guarantees the return of the initial investment to the beneficiary upon the annuitant's death, minus any withdrawals or surrender charges. This can help ensure that investors' heirs receive a portion of their investment if they pass away before annuitization or exhausting the account value.

No Market Risk: Unlike variable annuities, which invest in underlying mutual funds and expose investors to market risk, FIAs do not directly invest in the stock market. Instead, they offer returns based on the performance of a market index without actually participating in the market itself. This can appeal to conservative investors seeking to avoid market volatility.

Creditor Protection: In some states, FIAs may offer protection from creditors, providing an additional layer of asset protection for investors.

It's essential for investors to carefully review the terms, fees, surrender charges, and potential limitations of FIAs before purchasing them to ensure they align with their financial goals and risk tolerance.