|
Annuities
Benefits of Investing in Annuities
Annuities offer several benefits for investors, including tax-deferred retirement savings, fixed or variable income for retirement, and investment flexibility. However, annuities aren't suitable for every investor. Your A.G. Edwards Financial Advisor can help you decide if investing in annuities would benefit your unique situation.Creating Retirement Income With Annuities
Annuities are primarily used for creating an income stream during retirement, whether you are planning ahead for retirement and want to take advantage of the tax-deferred savings feature or are already retired and need to generate an income stream immediately. When you are ready to receive income from your annuity, you can choose to receive income payments for one life, two lives, a certain time period or a combination of these. Your Financial Advisor can explain the different income alternatives available.
Fixed annuities provide income payments in fixed amounts, which can help you pay fixed expenses during retirement. The payments are determined by the annuity contract.
Variable annuities are long-term investment vehicles that provide income that can vary from payment to payment based on the performance of the underlying investments. They're designed to help offset the effects of inflation. Your investment, when redeemed, may be worth more or less than the original cost. Withdrawals prior to age 59 1/2 are fully taxable and may be subject to a 10% IRS penalty.
Please note: All guarantees for annuities are based on the claims-paying ability of theinsurance company.
When to Consider an Annuity
You may want to consider investing in an annuity if you are:• Concerned about creating an income stream during retirement
• Already maximizing your contributions to your tax-advantaged retirement accounts and/or plans (e.g., IRA, 401[k], 403[b], or other employer-sponsored plan)
• Retired and need to create an immediate income stream
• Looking for additional tax-advantaged investments
Use our annuity calculator to discover the benefits of tax deferral when you invest in an annuity.
How A.G. Edwards Can Help
Your A.G. Edwards Financial Advisor can help you:• Analyze your unique situation
• Determine whether a fixed annuity or variable annuity is right for you
• Develop an income strategy that may incorporate one or more annuities
• Select one or more annuities or other investments that are best-suited to helping you meet your specific retirement goals
• Review your current annuity contract to compare and explain its various features
What You Need to Know Before You Invest in an Annuity
Before you purchase an annuity, you should know how it works. Your A.G. Edwards Financial Advisor will provide you with a prospectus, which contains important information about the annuity contract, including investment objectives, risks, fees and charges, investment options, death benefits, and payout options. You should read and consider the prospectus carefully before investing.