Annuities
Is an Annuity Appropriate for Me?
No investment product is for everyone, and that is true of annuities. Annuities are long-term investments vehicles. Since most annuities impose a penalty if you withdraw more than the free withdrawal amount before the end of the surrender period, they should be entered into with a long-term perspective.
Investors should always consider contributing the maximum allowable to their qualified plans before investing in annuities. In addition to the tax deferral available in qualified plans, variable annuities have many special features to help you safeguard wealth and distribute income.
The annuity offers a way to invest in a wide variety of portfolios with different degrees of risk and return, giving you upside potential and diversity among asset classes. It can help you manage your income taxes and guarantee a stream of payments during retirement. Guarantees are backed by the claims-paying ability of the issuing insurance company.
Withdrawals of taxable amounts are subject to income tax. Prior to age 59 1/2, withdrawals may be subject to a 10% IRS penalty. A surrender charge may also apply.
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.