Annuities
Benefits of Investing in Annuities
Annuities offer several benefits for investors, including tax-deferred retirement savings, fixed or variable income for retirement, and investment flexibility. However, annuities aren't suitable for every investor. Your Financial Advisor can help you determine whether investing in annuities would benefit your unique situation.
Creating retirement income with annuities
Types of annuities
When to consider annuities
Investing in annuities through Wachovia Securities
What you need to know before you invest in a variable annuity
Creating Retirement Income With Annuities
Annuities are primarily used for creating an income stream during retirement, whether you are planning ahead for retirement and want to take advantage of the tax-deferred savings feature or are already retired and need to generate an income stream immediately.When you are ready to receive income from your annuity, you can choose to receive payments for the rest of your life or for the rest of your and your spouse's lives. Your Financial Advisor can explain the different income alternatives available.
Types of Annuities
There are three main types of annuities that you may want to consider: immediate annuities, fixed annuities and variable annuities.
- Immediate annuities provide an immediate income stream.
- Fixed annuities provide a guaranteed interest rate for a certain time period and usually have a minimum guarantee on the renewal rate.
- Variable annuities provide income that can vary from payment to payment based on the performance of the underlying investments. They're designed to help offset the effects of market fluctuations. If you choose a Guaranteed Minimum Income Benefit (GMIB) along with your variable annuity, you can receive guaranteed retirement income for the remainder of your life. This is optional and comes at an additional cost.
Please note: All guarantees for annuities are based on the claims-paying ability of the insurance company.
When to Consider Annuities
You may want to consider investing in annuities if you are:
- Concerned about creating an ongoing and consistent income stream during retirement
- Already maximizing your contributions to your tax-advantaged retirement accounts and/or plans (e.g., IRA, 401[k], 403[b], or other employer-sponsored plan)
- Retired and need to create a guaranteed and immediate income stream
- Looking for additional tax-advantaged investments
Your Financial Advisor can help you clarify your retirement income goals, which will help determine whether investing in an annuity makes sense for you.
Investing in Annuities Through Wachovia Securities
Wachovia Securities offers many choices for annuities, all from well-known insurance companies selected through our careful review process. We use rating agency reports and employ third-party research that provides regular updates on each carrier's financial strength. We also review the carrier's products, service capabilities and reputation to provide our clients with access to the top-tier annuity providers in the industry.Contact your Wachovia Securities Financial Advisor for more information about annuities and for help in determining whether investing in an annuity is right for your particular situation.