Annuities
A Layer of Protection for Your Financial Strategy
For investors seeking stability, potential tax advantages and long-term income, annuities may serve as a valuable complement to a diversified financial plan. When you are preparing for retirement, legacy planning or income distribution, annuities can offer tax-deferred growth while helping to address future income needs and financial uncertainties.
What Is an Annuity?
An annuity is a contract between you and an insurance company. In exchange for a lump sum or a series of payments, the insurer agrees to provide periodic payouts — either immediately or at a future date. These vehicles typically offer tax-deferred growth and may include a guaranteed death benefit to protect your beneficiaries.
Types of Annuities We Offer
Fixed Annuities
Fixed annuities provide a guaranteed minimum interest rate and a predictable stream of income. Payments may be scheduled for a specific term or for life, helping support income needs during retirement.
Variable Annuities
Variable annuities offer investment options tied to market performance. Payouts and account values fluctuate with the underlying investments, and there is potential for both gains and losses. These products are offered by prospectus only and involve investment risk, including possible loss of principal.
Equity-indexed annuities
These annuities combine characteristics of fixed and variable products. Returns are linked to a market index — such as the S&P 500 — but are subject to caps and participation rates. A guaranteed minimum return is typically included, providing a level of downside protection. Indexed annuities do not directly invest in the stock market.
What is Important to Keep in Mind About Annuities?
- All guarantees are subject to the claims-paying ability of the issuing insurance company.
- Variable annuities are offered by prospectus only. Investors should consider investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other important information and should be read carefully before investing.
- Variable annuities include fees such as mortality and expense charges, administrative costs and investment management fees.
- Equity-indexed annuities may cap gains and typically guarantee a portion (for example, 90 percent) of premiums. Performance may vary, and early withdrawals could result in less than the amount originally invested.
- Withdrawals from annuities may be subject to surrender charges and income tax. Early withdrawals before age 59½ may also incur a 10 percent IRS penalty.
- Tax deferral applies to non-qualified annuities and may not provide additional benefit if the contract is held within a qualified account such as an IRA.
- Annuities are not FDIC-insured and may lose value.
Disclosures
This material is for informational purposes only and is not intended as an offer or solicitation for any insurance product. Annuities are insurance products and are not insured by the FDIC or any other government agency. All guarantees are subject to the claims-paying ability of the issuing insurer. Variable annuities are offered by prospectus only and involve investment risk, including the possible loss of principal. Prospectuses are available from your licensed representative and should be read carefully before investing. Withdrawals from annuities may be subject to income tax, surrender charges and a 10 percent early withdrawal penalty if taken before age 59½. Tax deferral applies to non-qualified annuities and may not provide additional benefits if held in a qualified account. Alamo Capital is licensed to offer insurance in California (Ins. #0B23582).
Speak with an Expert
No two financial plans are exactly alike. Whether your goals center on guaranteed income, market participation or legacy protection, a licensed insurance professional can help assess your needs and explore annuity solutions aligned with your long-term objectives. Call (877) 68-ALAMO to schedule a no-obligation consultation.
