Fixed Annuities
Flexible, Tax-Deferred Investing

If you would like to save on taxes while potentially earning a higher rate of interest, consider a fixed annuity.††† A fixed annuity is a contract between you and an insurance company. When a fixed annuity is purchased, the portfolio managers of the insurance company place your money in prudent, regulated investments chosen for predicable, long term growth. In return for your payment, the insurance company agrees to provide either a regular stream of income or a lump sum pay out at some future date.

A fixed annuity allows your money to grow tax-deferred until you receive or start withdrawing funds so your money can grow faster than if it were invested in taxable investments.

	Highlights Below > Benefits You’ll Receive > Fast Facts > Important Considerations

Benefits You’ll Receive

• Earnings are tax-free until withdrawn
• Fixed, competitive interest rates
• No start-up fees or charges
• Due to the tax deferral feature of annuities, your investment tends to grow faster than investments in taxable CDs
• Lifetime income
• Assistance from professional financial consultants

	Fast Facts
	Minimum Deposit $3,000 to $5,000 — depending on the terms of the annuity
	Surrender Charges May apply if more than 10% of the total balance is withdrawn in the first 5 to 10 years, depending on the terms of the annuity
	Tax Penalties Withdrawals before age 59½ may be subject to a 10% IRS penalty

Important Considerations

Withdrawals before 59½ years of age may incur tax penalties. Surrender charges may also apply if you withdraw more than 10% of the total balance in the first five to ten years, depending on the terms of your annuity.

Fixed annuities offer reasonable yields at low risk. Your return and the value of your fixed annuity depend on the performance of the portfolio managers of the insurance company. Once purchased, they will place your deposit in prudent, regulated investments chosen for predictable, long-term growth. A fixed annuity earns a guaranteed rate of return for your money.

You purchase a fixed annuity contract by making either a single purchase payment or a series of purchase payments. Unlike a variable annuity, which offer higher yields at greater risk, your money is invested in stock and bond sub-accounts that you select based on your investment objectives and risk tolerance.

Fixed annuities provide you with great flexibility — you can opt to receive your money all at once, over a set number of years, or you can even opt to receive income for your entire lifetime. Depending on the program, other options may also be available.

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