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| Traditional
Annuities |
An annuity is a contract between
you and an insurance company, which provides for future
income payments in exchange for your investment now.
They are long-term investment vehicles that make
excellent retirement savings products since any earnings
grow tax-deferred.
Traditional annuities provide:
- guaranteed interest rates
- low administrative fees
- allows flexible withdrawal options tailored to
individual needs
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| Variable
Annuities |
A variable annuity offers you the
flexibility of investing in one product with multiple
investment options. You can select the options to match
your investment strategy. As personal needs or outside
economic conditions change, you can change your
investment options without incurring immediate tax
consequences.
- Variable annuity values fluctuate according to the
performance of the investment options you choose.
- Any earnings grow tax-deferred and are subject to
ordinary income taxes only when you take a
distribution from your policy. Withdrawals prior to
age 59 1/2 are subject to a tax penalty.
- Unlike other tax-deferred retirement products,
there is no annual contribution limit.
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