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Fixed & Variable
Annuities
Annuities
are financial products offered by insurance companies that
can be
either fixed
or variable contracts. More specifically…
- Fixed annuities earn interest at rates established by the issuing
company or within the annuity contract. These contracts guarantee
that payments will be no less than a minimum rate of interest.
- Variable annuities are contracts whereby monies are put into
separate variable accounts (typically mutual funds) as decided
by the contract
owner and earnings are generated based on the performance of
these accounts.
With
all annuity products, earnings are tax-deferred until the time
of withdrawal.
Unlike
mutual funds that are purchased
outside of
an annuity contract, monies within these accounts can be
moved between investment options, and these reallocations of
monies
do not generate
any taxable consequences. Distributions from annuities
prior to age 59 ½ may be subject to a 10% IRS penalty.
As you can see, annuities are financial products that provide
many attractive benefits, including guaranteed death benefits
in the event
of death of the contract owner and, as mentioned above,
tax-deferred features. Schedule an
appointment with John
Klimek, our financial services representative, to learn more about
the many annuity products
we now offer.
*Securities
Offered through ING Financial Partners, Inc., 705 Washington
Blvd., Suite 100, Williamsport PA 17701. Tobyhanna Army Depot
Federal Credit and ING are not affiliated. Not FDIC or NCUA
insured. May lose value. Not a deposit product. No credit union
guarantee. Not insured by any federal government agency. |
