Saving for Your Retirement: Annuities

Key strengths

  • Interest generated by an annuity accrues tax-deferred until withdrawn
  • You can receive payments from the annuity for your entire lifetime, regardless of how long you may live*
  • There are normally no contribution limits
  • There are many different types of annuities to choose from
  • You pay taxes only on the earnings portion of annuity payments
  • At death, proceeds from an annuity pass free from probate to your named beneficiary
  • Guarantees are subject to the claims-paying ability of the issuing insurance company

Key tradeoffs

  • Annuities carry fees and expenses
  • May have surrender charges
  • Contributions are not tax deductible
  • There may be tax penalties for early withdrawals prior to age 59½ (subject to exceptions)
  • Once you elect a specific distribution plan, annuitize the annuity, and begin receiving payments, that election is usually irrevocable (with some exceptions)

Important: Annuities are long-term tax-deferred investment vehicles intended to be used for retirement purposes. Any gains in tax-deferred investment vehicles, including annuities, are taxable as ordinary income upon withdrawal. For variable annuities, investment returns and the principal value of the available sub-account portfolios will fluctuate based on the performance of the underlying assets so that the value of an investor’s units, when redeemed, may be worth more or less than their original value.

Investing for Retirement

Keep in mind…

  • A well-diversified portfolio can help balance risk
  • The earlier you start investing, the more you can contribute over the course of your working lifetime
  • By starting early, your investments will have a longer period of time to compound
  • With a longer time frame, you will have a larger choice of investment possibilities

What to do…

  • Assess your risk tolerance
  • Determine your investing time frame
  • Determine the amount of money you can invest
  • Choose investments that are appropriate for your risk tolerance and time horizon
  • Seek professional management, if necessary

Infinex Located at Apollo Trust

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Disclosure Information — Important — Please Review

Investment and insurance products and services are offered through INFINEX INVESTMENTS, INC. Member FINRA/SIPC. Infinex and the bank are not affiliated. Products and services made available through Infinex are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of nor guaranteed or insured by any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value. NOT FDIC-INSURED. NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY. NOT GUARANTEED BY THE BANK. MAY GO DOWN IN VALUE.

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