1 Guarantees provided under fixed annuities are subject to the issuing company's claims-paying ability.
2 Keep in mind, there are risks associated with investing in securities, including possible loss of principal.
3 Withdrawal/Transfer charges may apply based on the type of annuity contract.
4 Dependent on annuity contract.
There are material differences between mutual funds and annuities. Mutual fund capital-gain distributions or dividends paid are added to the number of shares owned (number of shares increase). Mutual funds are subject to various fees and expenses, including but not limited to management, administrative, and distribution fees.
A fixed annuity is an insurance product designed to guarantee returns that are announced in advance. It provides principal protection and steady, guaranteed growth over time. A fixed annuity can help retirement plan participants save for retirement and offers the opportunity for guaranteed income for life in retirement.
A mutual fund pools money from many investors to purchase a collection of stocks, bonds or other securities which are managed in one fund. When markets are up, participants can capture the gains, but they may also experience losses when markets are down. Some or all of their assets can be transferred among funds or converted to cash at retirement with ease.