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Anthony Penree

Financial Advisor

 

ABC Company

45 Prospect Ave, Albany, NY 12206

 

Phone:  518-870-1081

 

Email: apenree@ltmclientmarketing.com

Website: ltmclientmarketing.com

September/October 2022

Is a Variable Annuity Right For You?

Is a Variable Annuity Right For You

A variable annuity* is a contract between you and an insurance company that offers the potential for providing a steady income during retirement or for a set period. You can purchase an annuity by making periodic payments over time or with one lump-sum payment.


The Mechanics
Variable annuities have an accumulation phase and an annuitization (payout) phase. During the accumulation phase, you make payments into an investment account. The money is invested in the options you’ve selected, typically mutual funds that hold stocks, bonds, money market instruments or a combination of these. The value of the annuity will depend on the performance of its underlying investments.


In the annuitization phase, you receive regular income payments based on the value of the annuity contract. You can choose to take payments for the rest of your life—or your and your spouse’s lives—or for a period that you set. Income and investment gains are tax deferred until you begin receiving payments, at which time, they’ll be taxed at your regular income tax rate.


Right for You?
Variable annuities may be suitable for investors who are looking for capital appreciation and have a high tolerance for risk and a long investment time frame. They may not be appropriate for investors who are close to retirement or who’ll need the income relatively soon. Help protect your investment by purchasing annuities issued by insurance companies with strong financial ratings.


As with any investment, there are many options and details to understand before you invest. Your tax and financial professionals can explain the requirements, fees, and suitability of these investments for your portfolio.


*Annuity products are not FDIC-insured, and their guarantees are backed solely by the claims-paying ability of their issuing life insurance company. Distributions from annuities are taxed as ordinary income and, if taken prior to reaching age 59 ½, may be subject to an additional 10% IRS tax penalty.


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ABC Company and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative. * Securities offered through ABC Company, Member SIPC, 45 Prospect Ave, Albany, NY 12206.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.