Protection for a PriceThe biggest financial worry among investors this year is that their investments will “get clobbered,” according to a late 2009 poll.1 So it’s not surprising that 74% of investors said a guarantee was “extremely” or “very” important when choosing an investment.2A guaranteed investment? Actually, it’s no joke. Variable annuities, which are insurance contracts that offer an opportunity to pursue investment gains, give contract holders the ability to purchase guarantees to help protect against downside risks. Although the guarantees come at a price, consider the potential value of these benefits. Guaranteed minimum accumulation. Regardless of the performance of the underlying investments, the contract value will maintain a minimum level after a specified term. This level is usually equal to the amount of premiums paid. Guaranteed minimum income. When the annuity owner begins taking retirement income, the payment will be based on the greater of either the actual contract value or a minimum payment amount. Guaranteed minimum withdrawals. A fixed percentage (usually between 5% and 7%) of the annuity premiums can be withdrawn annually for a specified period (including the owner’s lifetime), regardless of market performance. 
There are contract limitations, fees, and charges associated with variable annuities, which can include mortality and expense risk charges, sales and surrender charges, administrative fees, and charges for optional benefits. Withdrawals reduce annuity contract benefits and values. Variable annuities are not guaranteed by the FDIC or any other government agency; they are not deposits of, nor are they guaranteed or endorsed by, any bank or savings association. Withdrawals of annuity earnings are taxed as ordinary income and may be subject to surrender charges plus a 10% federal income tax penalty if made prior to age 59½. Any guarantees are contingent on the claims-paying ability of the issuing company. The investment return and principal value of an investment option are not guaranteed. Because variable annuity subaccounts fluctuate with changes in market conditions, the principal may be worth more or less than the original amount invested when the annuity is surrendered. Variable annuities are sold only by prospectus. Please consider the investment objectives, risks, charges, and expenses carefully before investing. The prospectus, which contains this and other information about the investment company, can be obtained from your financial professional. Be sure to read the prospectus carefully before deciding whether to invest. 1) Money, December 2009 The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2010 Emerald. |
| Distinct Financial Solutions |
print this page| 1421 N. Elm St. Ste. 100 | • | Denton, TX | • | 76201 |
| Phone: 940.566.0377 | • | Fax: 940.382.5977 |
| www.distinctfinancialsolutions.com | • | info@distinctfinancialsolutions.com |
Distinct Financial Solutions is a TX based multiple line insurance agency and Joel Hays is an Agent representing American National Insurance Company and American National Property And Casualty Company. Distinct Financial Solutions and Joel Hays are licensed to sell insurance products in the following states: TX
All products, coverages, and options are not available in all states, and eligibility requirements will apply. Products and services referenced in this website are provided through multiple companies. Each company has financial responsibility only for its own products and services and is not responsible for the products and services provided by the other companies.
Life insurance and annuities are issued through American National Insurance Company,
Personal and commercial lines insurance is issued by American National Property And Casualty Company (ANPAC®), its subsidiaries or affiliates, including American National General Insurance Company, Pacific Property And Casualty Company (California), American National Lloyds Insurance Company (Texas), American National County Mutual Insurance Company (serviced by ANPAC®-Texas), and ANPAC® Louisiana Insurance Company (Louisiana). American National Property And Casualty Company is a subsidiary of American National Insurance Company.
Disability Income products and services are issued by Illinois Mutual Life Insurance Company,
Securities products and services are offered through Agents who are also Registered Representatives and are distributed by Securities Management and Research, Inc. (SM&R), Member FINRA, SIPC, a broker-dealer subsidiary of American National Insurance Company located at 2450 South Shore Blvd., League City, TX 77573 (281) 334-2469. Please note that Distinct Financial Solutions and SM&R are not affiliated. Securities products are offered by prospectus only, involve investment risks, are subject to market fluctuations and the possible loss of principal.
For more information on the Financial Industry Regulatory Authority (FINRA), you may visit their Web site at www.finra.org.
Investors may obtain more information about the Securities Investor Protection Corporation (SIPC), including the SIPC brochure, by contacting SIPC at 202-371-8300 or visit www.sipc.org.
Tax issues that may be discussed are subject to change and this is for your information only. Discussion of such issues does not constitute tax or legal advice. Please consult your tax advisor, attorney or CPA for guidance on all tax matters.
These brief descriptions of coverages available are for illustrative purposes only, and are not intended as a statement of contract. For actual terms and conditions of coverage provided, refer to your insurance policy, or, for more information about coverage options and availability, talk to your American National agent and eligibility guidelines apply. American National Family of Companies reserves the right to discontinue programs at any time.
This site may have links to other sites, which are not maintained by American National Insurance Company, its subsidiaries or affiliates. Such links do not imply endorsement or approval of these sites or the content therein by American National, its subsidiaries or affiliates.