Annuities
What is an Annuity?
An annuity is a contract between an individual and an insurance company that allows you to accumulate money on a tax-deferred basis and arrange for a guaranteed stream of income payments, usually when you retire. When you begin to take payments, they may be subject to income tax, and if taken before age 59 1/2, an additional 10% penalty. These guaranteed payments are backed by the claims-paying ability of the issuing insurance company.
Longer Life, Longer Retirement
Americans are living longer and spending more years in retirement. According to the 2000 U.S. Census, a 65-year-old can, on average, expect to live to age 83. The Society of Actuaries 2000 U.S. Annuity Table shows that 58% of the time, one member of a healthy couple will live to age 90.
An annuity can act as yet another source of retirement income to help supplement such traditional retirement savings vehicles as Social Security, pension, 401(k) payments, and personal savings.
There are different types of annuities designed to help meet different financial needs.Learn More.
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.
This information has been obtained from sources we believe to be reliable, but we do not guarantee its accuracy or completeness. Neither the information nor any opinion expressed herein constitutes a solicitation or sale of securities, which can be made only by prospectus.
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.