Income Annuities

• You are already retired or nearing retirement.
• You have a long life expectancy.
• You are concerned about outliving your assets.
• You are seeking a tax-advantaged income stream.
• Your expenses in retirement are likely to be more than your income from your pension, Social Security, and other sources of retirement income.
• You have a minimum of $10,000 available to invest.
  

You pay a portion of your retirement assets to an insurance company in return for a pension-like income, guaranteed for a certain period of time or for life.

• Income payouts can begin immediately or can be deferred until a later date.
• May provide the highest amount of guaranteed income for life, but is ultimately irrevocable and not a liquid investment.
• Payments are comprised of a combination of principal and interest. The portion of each payment considered a return of principal is non-taxable; the portion derived from interest earned is subject to ordinary income tax rates.
  

• Purchase is generally an irrevocable contract — a lifetime purchase decision — with little or no access to funds.
• An income annuity is typically utilized in order to maximize lifetime income, and is generally not designed for leaving a legacy for heirs.
• Consult your tax advisor about possible tax implications.