Fast Facts
  •  9/2/2021

Annuity Beach Reads Part Four: Variable Annuities

By SIMON

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Our latest article on variable annuities explains how they work and the role they play in an investment portfolio.  Find it, along with our complete library of articles and videos on simon.io/engage.

1 Source: https://www.chicagofed.org/publications/chicago-fed-letter/2017/384

This is not intended to be an offer or solicitation to purchase or sell any security or to employ a specific investment strategy. This material is intended as general background information, for educational purposes only, and this material should not be used as a primary basis to make an investment decision. The materials provide a general overview of the products described, and actual financial instruments may differ materially from those described. No person should consider investing in an instrument on the basis of these materials. Any investment decision should be made only after carefully reviewing the applicable prospectus. Please remember that all instruments described in this material involve a risk of loss. This does not constitute legal, accounting or tax advice, and the recipient should consult with his or her legal, accounting or tax adviser regarding the instruments described in this material.

Prior to making any decision with respect to an annuity contract, purchasers must review, as applicable, the offering document, the disclosure document, and the Buyer’s Guide which contain detailed and additional information about the annuity. Any annuity contract is subject in its entirety is to the terms and conditions imposed by the carrier under the contract. Withdrawals or surrenders may be subject to surrender charges, and/or market value adjustments, which can reduce your contract value or the actual withdrawal amount you receive. Withdrawals and distributions of taxable amounts are subject to ordinary income tax and, if made prior to age 59½, may be subject to an additional 10% federal income tax penalty. Withdrawals reduce the account value, future annuity payments, and any guaranteed death benefits or living benefits, and can cause an investor’s contract and/or benefits to terminate without value.

Variable annuities are not FDIC-insured. All references to guarantees arising under an annuity contract, any fixed account crediting rates or annuity payout rates, and any rider guarantees, including optional benefits, are subject to the financial strength and claims-paying ability of carrier.

An investor should consider investment objectives, risks, and charges and expenses of a variable annuity and its fund options carefully before purchasing a contract and/or allocating to a fund option. Contract and fund prospectuses and, if available, summary prospectus, each contain this and other information about the applicable contract or fund, and should be read carefully before investing. The contract and fund prospectuses and if available, the summary prospectuses, are available on the applicable carrier’s website.

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