Annuities

Annuities have increased in commonality thanks to the growing population of retirees and their interest in lifetime retirement income and living benefits options. Annuities offer another option for retirement income, some which provide guarantees and income predictability.

A variety of annuities are available from LPL Financial, the largest independent broker/dealer in the U.S. ⁽¹⁾, including:

• Deferred or Immediate Fixed Annuities: investments issued by insurance companies. They pay guaranteed rates of interest during retirement.
• Variable Annuities:  a tax-deferred retirement vehicle that allows you to choose from a selection of investments, and then pays you a level of income in retirement that is determined by the performance of the investments you choose. ⁽²⁾

No matter what your goals, there are ways to potentially make the most out of your nest egg with a diversified strategy. We recommend that you begin that conversation with John or Alan to carefully weigh your options and examine fees and other charges before buying.⁽³⁾

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⁽¹⁾As reported by Financial Planning magazine, June 1996-2018, based on total revenue.⁽²⁾ Variable annuities are long-term tax-deferred investment vehicles designed for retirement purposes and contain both an investment and insurance component. They are sold only by prospectus. Guarantees are based on the claims-paying ability of the issuer and do not apply to a variable annuity's separate account or its underlying investments. The investment returns and principal value of the available subaccount portfolios will fluctuate so that the value of an investor's unit, when redeemed, may be worth more or less than their original value. Withdrawals made prior to age 59½ may be subject to a 10% additional tax. Surrender charges may apply. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal.

⁽³⁾An annuity is a long-term tax-deferred investment vehicle designed for retirement purposes and may contain both an investment and an insurance component. Guarantees are based on the claims-paying of the issuer and do not apply to a variable annuity's separate account or its underlying investments. Withdrawals from annuities prior to age 59½ are subject to a 10% additional tax. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Issuing companies may also charge surrender charges for some early withdrawals. Neither fixed nor variable annuities are insured by the FDIC, and they are not deposits of -- or endorsed or guaranteed by -- any bank. Investing in variable annuities involves risk, including loss of principal.