stock is an equity security that represents ownership in a corporation. Each share of stock represents a claim on the corporation’s earnings and assets.  Corporations may issue both commonstock and preferred stock. Stockholders accept the risks inherent in owning a company.

Bonds

Mutual Funds

Derivative Instruments

Annuities

bond represents the indebtedness of their issuer.  A bond is any interest-bearing or discounted government or corporate security that obligates the issuer to pay the bondholder a specified sum for the use of the money, usually at specific intervals, and to repay the principal amount of the loan at maturity.

mutual fund is operated by an investment company that raises a pool of money from shareholders and invests it into stocks, bonds, options, futures, currencies or money market securities. All shareholders share equally in the gains and losses generated by the fund. A mutual fund’s investment objectives, risks, charges and expenses are stated in the prospectus.

A derivative instrument is a contract whose value is derived from the performance of an underlying financial asset, index or other investments.  When used properly, they  can create many benefits, including the reduction of risk.  Options are the most common derivatives.

An annuity is a form of contract sold by life insurance companies that guarantees a fixed or variable payment to the owner of the annuity, the annuitant, at some future time, usually at retirement.  All capital in an annuity grows tax-deferred.  

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An annuity is a form of contract sold by life insurance companies that guarantees a fixed or variable payment to the owner of the annuity, the annuitant, at some future time, usually at retirement.  All capital in an annuity grows tax-deferred.  Two basic types of annuities are:

 

Fixed annuity – The amount will be paid out in regular installments varying only with the payout method selected.

 

Variable annuity – The amount to be paid out is based on a guaranteed number of units where the unit values and  payments depend on the value of the underlying investment.

 

Before investing, consider the investment objectives, risks, charges, and expenses of the variable annuity and its investment options.  Read the prospectus and consider the information carefully before investing. Product availability and features may vary by state.  Refer to the contract prospectus for more complete details regarding the living and death benefits if applicable.

 

  • Variable annuities are long-term investment vehicles designed for retirement purposes and contain underlying investment portfolios that are subject to investment risk, including possible loss of principal.

 

  • The contract value is subject to market fluctuations and investment risk so that, when withdrawn, it may be worth more or less than its original value.

 

  • Guarantees are subject to the claims-paying ability of the issuing insurance company.

 

  • Any earnings and gains for non-qualified contracts and the entire amount for qualified contracts will be taxed as ordinary income.

 

  • Additional fees apply to annuities. Withdrawals of taxable amounts from an annuity are subject to ordinary income tax, and, if taken before age 59½, may be subject to a 10% IRS penalty.

 

  • Excess withdrawals may significantly reduce the guaranteed withdrawal benefit amount. Surrender charges may apply. Withdrawals of taxable amounts are subject to ordinary income tax, and if made before age 59½ may be subject to a 10% IRS penalty.

Annuities