A variable annuity is a contract between you and an insurance company, under which the insurer agrees to make periodic payments to you, beginning either immediately or at some future date. You purchase a variable annuity contract by making either a single purchase payment or a series of purchase payments.
A variable annuity offers a range of investment options. The value of your investment as a variable annuity owner will vary depending on the performance of the investment options you choose. The investment options for a variable annuity are typically mutual funds that invest in stocks, bonds, money market instruments, or some combination of the three.
Although variable annuities are typically invested in mutual funds, variable annuities differ from mutual funds in several important ways:
All Variable Annuities have internal fees and investment sub-account fees. Please ask your Advisor to outline these fees, upfront before you make your purchase. Over the years we have reviewed literally hundreds of Variable Annuities from dozens of different Variable Annuity Insurers. We have found that fees for these types of investments range from 1.5% up to 4%. You have to ask yourself, what sort of impact would these fees have on my long-term savings goals? Again, you have to ask yourself, where would I be if I didn't have to pay these fees?
Annuities are best suited for long term investors. Any strategy utilizing investments carries an inherent element of risk. Withdrawals from an annuity prior to age 59 1/2 are subject to a 10% tax penalty in addition to income taxes on earnings. Guarantees are based upon the claims paying ability of the underlying insurance agency.
Mike Albertson is an Investment Adviser Representative. Advisory services offered through Secure Asset Management, LLC (SAM) a Registered Investment Adviser.
Securities are offered through Aurora Securities, Inc. (ASI) Member: FINRA/SIPC.
Tradewell Tax and Financial is not an affiliated company of (SAM) or (ASI).
Representatives of Tradewell Tax and Financial are authorized in states where they are properly registered. Mike Albertson: FL, IN, KY, OH, SC. Clients who are not residents of these states cannot be serviced.
This website is not intended to provide investment, legal, or tax advice, nor to effect securities transactions or to render personal advice for compensation. Tradewell Tax & Financial is not engaged in the practice of law. All insurance recommendations offered through Indiana Tax Advisory Group, Inc. Mike Albertson is President of Indiana Tax Advisory Group, Inc.
There are no assurances that you will achieve your investment objectives. All investment strategies have the potential for profit or loss. Changes in investment strategies, economic conditions, contributions, or withdrawals may materially alter the performance of your portfolio. Past performance is no guarantee of future success. We provide no guarantee that any portfolio will match or outperform any benchmark.
Recommendations and advice are based on information provided by the client that is presumed to be accurate. The financial planning process is not stagnant and must be adjusted based upon changes in the client's personal and financial situation, liquidity needs, investment objectives, and risk tolerance. Clients are responsible for notifying us immediately if their personal and financial circumstances or goals change.