Variable Annuities

Private sector pensions were largely phased out in the 1980’s, social security benefits offer only a fraction of the retirement income high net worth retirees desire, and interest rates are at historic lows resulting in low bond yields. Variable annuities with living benefit riders for guaranteed retirement income offer predictable retirement income while the underlying assets are placed in investment sub-accounts.


Variable annuities are long term, tax-deferred investment vehicles designed for retirement purposes and contain both an investment and insurance component. They have fees and charges, including mortality and expense risk charges, administrative fees, and contract fees.   They are sold only by prospectus. Guarantees are based on the claims paying ability of the issuer. Withdrawals made prior to age 59 ½ are subject to 10% IRS penalty tax and surrender charges may apply. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. The investment returns and principal value of the available sub-account portfolios will fluctuate so that the value of an investor’s unit, when redeemed, may be worth more or less than their original value.