Variable Annuities — An opportunity for long-term growth in an insurance product
Variable benefits with variable risks
Like all annuities, a variable annuity is a contract with an insurance company that gives you the option to turn the money you invest into a stream of income at some point. Depending on how the income is taken there may be a federal tax penalty if income is taken prior to age 59½. Unlike a fixed annuity the value of a variable annuity and future income payments can fluctuate over time - fluctuation is dependent on your investment performance.
Because of their growth potential, variable annuities can help outpace inflation.
A variable annuity allows you to:
- Invest in the market — You can choose among professionally managed portfolios that invest in stocks, bonds and mutual funds, dividing it to create a diversified mix that suits your long-term financial goals and your risk tolerance.
- Invest all at once or over time — Most variable annuities allow for both lump sum purchases or making contributions over time.
- Defer taxes — Your investments have the potential to grow tax-deferred. Withdrawals of interest from certain accounts may be taxable at your ordinary income tax rate.1
- Provide protection — A death benefit is included to help protect a portion of your savings for your heirs.
Variable benefits, variable risks, lifetime withdrawals
Just as an umbrella can give you a little extra protection over your raincoat and hat, adding guaranteed lifetime withdrawal benefits or riders to a variable annuity puts a little something extra into your retirement investment—guaranteed lifetime income. The insurance company guarantees a regular payment for your lifetime. Payments can be received monthly, quarterly or annually. Using this benefit income will continue even if your account value drops to zero. This will ensure that you won’t outlive your assets. Keep in mind, these extra benefits can sometimes come with an extra cost. Be sure to read the fine print carefully before investing.
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You should consider the investment objectives, risks and charges, and expenses of the variable annuity and its underlying investment options carefully before . The prospectus for the variable annuity and underlying investment options contain this and other information. You may obtain a free prospectus by calling your financial professional. Please read the prospectus carefully before investing.
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1 NOTE: An IRA or other tax qualified account does not need to use an annuity to defer taxes.
Variable annuities are long-term investments designed for retirement purposes. A 10% federal penalty may apply for withdrawals prior to age 59 ½. Money distributed from the annuity will be taxed as ordinary income in the year the money is received. Variable annuity subaccounts fluctuate with market conditions, and when surrendered, the principal may be worth more or less than the original amount invested. An annuity is not necessary for the plan’s favorable tax treatment, but offers other features which may be valuable to you. Annuities are subject to additional fees and expenses to which other tax-qualified funding vehicles may not be subject.
IRAs and other qualified plans already provide tax-deferral like that provided by an annuity. Additional features and benefits, such as contract guarantees, death benefits and the ability to receive a lifetime income are contained within the annuity for a cost. Please be sure the features other than tax deferral and costs of the annuity are right for you when considering the purchase of the annuity for IRAs or other qualified plans.
Withdrawals are subject to income tax and withdrawals prior to age 59 ½ may be subject to a 10% tax penalty.
Guarantees, such as guaranteed income benefits, associated with annuities are subject to the claims-paying ability of the issuer.
Securities offered through ING Financial Partners (member SIPC).
Subject to state availability, not all products are available in every state.