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- Dollar Cost Averaging
Annuities
Why Start Saving Now? Dollar Cost Averaging
A program of regular investing may help smooth out the highs and lows of a volatile stock market. A variable annuity is well suited to carry out this strategy because it allows a specified portion of your lump-sum investment (typically deposited into a fixed-rate account)1 to be transferred tax-free on a monthly basis into equity portfolios, where you have the potential for higher returns.By ignoring short-term fluctuations, you are able to buy more units when prices are down and fewer units when prices are up, ultimately resulting in a lower average cost per unit.Dollar Cost Averaging replaces emotion with consistency but does not assure a profit or protect against a loss. Investors should weigh their ability to sustain investments during periods of market downturns, and should be aware that any fixed rates offered are paid on a declining balance.
1 Fixed-rate accounts are backed by the claims-paying ability of the issuing insurance company.
Our firm and its affiliates are not in the business of providing tax or legal advice. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any such taxpayer for the purpose of avoiding tax penalties. Tax-related statements, if any, may have been written in connection with the “promotion or marketing” of the transaction(s) or matters(s) addressed by these materials, to the extent allowed by applicable law. Any such taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.
Variable annuities are sold by prospectus only, which contains complete information on charges and expenses. Investors should consider the investment objectives, risks, charges and expenses of the investment company carefully before investing. The prospectus contains this and other information and can be obtained by contacting your Financial Advisor advisor. Please read the prospectus carefully before you invest.
Morgan Stanley Smith Barney LLC offers insurance products in conjunction with SBHU Life Agency, Inc. Citi Personal Wealth Management, MyFi, and Citi Private Bank offer insurance products in conjunction with Citigroup Life Agency LLC.
Please contact your advisor for more information about available products, services and research.
For more information, please contact your Financial Advisor.