Most simply, an annuity is a contract issued by an insurance company that allows you to invest money for the long-term and accumulate earnings on a tax-deferred basis. This means that interest accumulates free from federal, state, and local taxes until you withdraw money from your account, usually at retirement. Money withdrawn prior to age 59½ is generally subject to a 10% Federal income tax penalty as well as ordinary income taxes.

Annuities are unique investments in that they are specifically designed to generate retirement income you won't outlive, making certain there is a steady stream of income to assist you in achieving a comfortable retirement.




You have many choices to make about saving for a secure retirement. CDs, savings accounts, and traditional retirement plans offering varying degrees of security and some growth potential for your retirement dollars.

An equity-indexed annuity combines many of these benefits with the potential for growth related to rises in a stock market index.

An equity-indexed annuity's interest earnings are linked to rises in the S&P 500 Index, or Dow Jones Industrial Average.. When the Index goes up, so do your interest earnings. If the Index drops, your principal is protected by your minimum guarantee. You have a built-in safety net.

These annuities are not actually invested in S&P 500 Index companies. The interest you earn is linked to the positive changes in the Index's performance.the insurance company issuing the annuity guarantees your principal, so while you may benefit from a portion of the Index's performance, you have no downside risk.

Simply put, an equity-indexed annuity offers you upside potential with downside protection. It's a great combination for your long-term retirement saving strategy.

Equity-indexed Annuities Offer:

A link to a portion of the positive changes in an index means the potential to earn even more.
Principal Protection.
A minimum guarantee, regardless of the Index performance.
Tax-deferred growth potential.
Income options to meet your specific needs.
A death benefit that guarantees your beneficiaries receive 100% of your annuity's indexed value.

Combined, equity-indexed annuities offer you both principal protection plus the opportunity to earn additional interest in relation to positive changes in the S&P 500 Index, or Dow Jones Industrial Average..



The benefits of tax-deferral in an annuity do not apply to contracts purchased as an Individual Retirement Annuity (IRA) or inside some other tax-qualified retirement plan because these plans already have tax-deferred status.

Early withdrawal and surrender charges may apply. Withdrawals may be subject to a 10% federal penalty tax if made before 59½ and are subject to qualified plan provisions.

This material is authorized for prospective investors only when preceded or accompanied by a current prospectus and underlying fund prospectuses containing more complete information including all charges and expenses, such as the withdrawal charges and mortality and expense risk charges. Read all prospectuses before investing.

The principal is guaranteed by the strength of the issuing life insurance company.

Annuities are long-term vehicles designed for retirement purposes. Withdrawals of taxable amounts are subject to income tax.


if you would like additional information regarding annuities, please contact an Allied Roth licensed insurance professional.