| |
An annuity is a contractual agreement between an investor and an insurance company. The invested funds have the potential to grow tax-deferred until withdrawn as a lump sum or in regular payments. Annuities can be a suitable investment option for long-term investors and can also provide a regular income stream.
- Most people purchase annuities to provide supplemental retirement income.
- You'll have several options for receiving regular payouts.
- If you withdraw money beyond an allowed amount prematurely, you may incur a penalty or surrender charge.
- If you withdraw any earnings before you reach age 59½, the IRS will charge a 10% tax penalty.
|
|
| |
| Types of Annuities |
| Fixed Annuity |
- A fixed annuity earns a guaranteed rate of return
- At the end of the annuity period, your guaranteed rate may adjust up or down, depending on interest rates at the time
- Often the insurance company will also guarantee the full return of your principal
|
| Variable Annuity |
- You may place money in any number of investment options
- Total return will depend on the performance of your investments, and performance may vary from year to year
- Depending on terms of the contract, beneficiaries may receive guarantees of principal or a stepped-up value of the account, minus any withdrawals
|
Variable annuities involve investment risks, may lose value and should be considered a long-term, tax-deferred investment vehicle designed for retirement. Earnings are taxable as ordinary income when distributed, and if withdrawn before age 59½, may be subject to a 10% federal tax penalty. Guarantees are backed by the claims-paying ability of the issuing insurance company and do not apply to the principal amount or investment performance of the separate account or its underlying investments. If you are considering an annuity to fund a qualified plan, such as a 401(k) or IRA, the tax-deferral feature offers no additional value. Tax deferral may not be available if the annuity is owned by a "non-natural person" such as a corporation or certain types of trusts.
BB&T Investment Services, Inc. and its affiliates do not provide tax advice. Before acting on such information, consult your accountant or tax advisor.
BB&T Investment Services, Inc. is a registered broker-dealer and wholly owned subsidiary of Branch Banking and Trust Company. |
| |
|
| Contact us by Phone |
| To arrange a meeting with an Investment Counselor, contact your local BB&T bank branch or call 1-800-453-7348 |
| |
| Contact us by Mail |
BB&T Investment Services, Inc.
200 S. College St., 8th floor
Charlotte, NC 28202 |
|
 |
| Investment products offered through BB&T Investment Services, Inc. are:
Not a deposit • Not FDIC-insured • Not guaranteed by the bank •
Not insured by any federal government agency • May go down in value |
Member FINRA. Member SIPC.
Learn more at www.finra.org and www.sipc.org.
Please Note: BB&T Investment Services, Inc. can only serve clients residing in states in which we are currently registered with the National Association of Securities Dealers. For states other than North Carolina, South Carolina, Virginia, Georgia, Maryland, Washington D.C., West Virginia, Tennessee, Alabama, Kentucky, Florida, and Indiana, please call 1-800-453-7348 and select Option 3 for more information.
Copyright © 2009, Branch Banking and Trust Company. All Rights Reserved.
|
| |
|
