Annuities

Designed for long-term investing, annuities are often used to supplement retirement savings.

At First Citizens Securities, we can help you decide if annuities meet your financial objectives and, if so, help you choose between the two varieties as explained below: variable and fixed annuities.

To meet your retirement and other long-term goals, annuities can:

  • Help you accumulate tax-deferred earnings.
  • Offer the opportunity for a lifetime of payments.
  • Provide a death benefit to your beneficiaries.

Depending on your age and situation, annuities can be helpful if:

  • You're in a high tax bracket and want to defer additional income for a time of reduced income.
  • You've reached your deductible limit on all your retirement accounts and wish to save more for retirement.

Two types of annuities, for two types of investors.

Variable annuities let you choose from a variety of sub-accounts that invest in stocks, bonds and money market instruments. Based on the performance of these sub-accounts, your earnings and payments will fluctuate and may be more or less than the original amount you invested.

Fixed annuities provide a fixed rate of return on your premium payment.

Are annuities right for you?

If you're looking ahead at your personal investment horizon — and perhaps, retirement — annuities may answer your needs. If your outlook is short-term however, you should probably not consider annuities because of substantial tax penalties and the possibility of early surrender charges if you withdraw your money early. Also, withdrawals prior to age 59 ½ may be subject to a 10% IRS penalty.

To determine if annuities fit your investment plan, e-mail us or call 1-866-931-1691.

First Citizens Securities is not a legal tax advisor and is not in the business of rendering tax advice. Any tax-related investment decisions should be made only after consultation with your tax advisor.

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