In its original form, an annuity is designed to provide benefits that you cannot outlive, or lifetime income. A deposit(s) is made with an insurance company – the accumulation phase – and at a later date the accumulated account can be converted into period payments – the annuitization phase – for the life of the owner. Annuitization is not an obligation of the account owner, so in essence an account could remain in the accumulation phase indefinitely.

Several annuity platforms exist for deposits to be made in:

• Fixed – Deposits are credited with a fixed interest rate
• Fixed Indexed – Returns are based on the performance of a specified index, such as the S&P 500
• Variable – You can pick from a selection of investments, or sub-accounts, and the performance of the investment will determine your returns
• Immediate – Income will begin after a single lump-sum deposit is made. Deposits in annuities are designed to be long term investments that can help supplement retirement income or increase wealth. Annuities can be complex and fees may apply, which is why we recommend that you work only with a trusted advisor and understand the contract before investing.

Before investing, understand that annuities are not insured by the FDIC, NCUSIF or any other federal government agency, and are not deposits or obligations of, guaranteed by, or insured by the depository institution where offered or any of affiliates. Annuities that involve investment risk may lose value and are designed for long-term retirement goals. Withdrawals are subject to income tax, and withdrawals before age 59½ may be subject to a 10% tax penalty.