Annuities - Fixed and Variable ^top
Fixed and variable annuities have become popular investment vehicles for individuals with long-term time horizons. Both provide a tax-deferral feature. Many people use tax-deferred annuities as the foundation of their overall financial plan. By postponing tax payments, your money can compound faster because you earn interest on dollars that would have otherwise been used to pay taxes.
A Fixed Tax-deferred annuity is a contract between you and an insurance company for a guaranteed interest bearing policy with guaranteed income options. You don't pay taxes on the earnings until you make a withdrawal or begin receiving an annuity income.
A Variable Annuity has all the features of a Fixed Annuity and allows you to invest in stock and bond portfolios. This investment feature permits investment diversification to help minimize risk and maximize potential earnings. A Variable Annuity has no predetermined rate of return and offers the potential for a higher rate of return .
Investors should consider the investment objectives, risks, charges, and expenses of the variable annuity contract and sub-accounts carefully before investing. The prospectus contains this and other information about the variable annuity contract and sub-accounts. Read the prospectus carefully before investing.
To learn more about annuities and how they might fit into your portfolio call ESL Investment Services, LLC, at 585.339.4475 or 800.814.5884. Or stop by an ESL branch near you and schedule an appointment with a Financial Consultant.
Variable annuities are subject to market risk. A variable annuity's value will fluctuate depending upon the underlying investment, and investor's units, when redeemed, may be worth more or less than the original amount invested. Guarantees are based on the claims paying ability of the issuer. Withdrawals prior to 59 ½ are subject to a 10% IRS penalty. Surrender charges apply.
When you invest in a variable annuity, you do not invest directly in the portfolios. You invest in the Sub-Accounts of a separate account of the insurance company that, in turn, invest in the portfolios you've selected. Your account is then credited with variable accumulation units in that Sub-Account. The range of fees and charges associated with the Sub-Accounts and the terms and conditions of your investment are detailed in the annuity prospectus.
No information provided on this site is intended to constitute an offer to sell or a solicitation of an offer to buy shares of any security, nor shall any security be offered or sold to any person, in any jurisdiction in which such offer, solicitation, purchase, or sale would be unlawful under securities laws of such jurisdiction. Securities are offered through LPL Financial.
Fixed annuities and insurance are offered through ESL Investment Services, LLC, a subsidiary of ESL Federal Credit Union. ESL Investment Services, LLC and ESL Federal Credit Union are not insurance companies or insurance underwriters. ESL Investment Services, LLC, member FINRA/SIPC, provides referrals to LPL Financial and its affiliates, member FINRA/SIPC. ESL Investment Services, LLC and ESL Federal Credit Union are not affiliated with LPL Financial or its affiliates.