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withdrawn prior to age 59½ is generally subject to a 10%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.
EQUITY INDEXED ANNUITIES
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
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.
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
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
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.
NOT FDIC/NCUA INSURED NO BANK/CREDIT UNION GUARANTEE
NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
if you would like additional information
regarding annuities, please contact an Allied Roth
licensed insurance professional.