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Structured annuities
Key Points
- A structured annuity provides exposure to equity markets, giving you the growth potential you need to achieve your goals, subject to the terms of the account selected.
- Each indexed account includes a level of protection that can help eliminate some of the risk associated with investing.
A structured annuity can provide you with opportunities to grow your money and a level of protection that can help eliminate some of the risk that comes with investing.
Why structured annuities?
Structured annuities can balance growth potential with a level of protection. With this solution you will benefit from:
- Exposure to equity markets: Structured annuities can offer you equity market exposure, giving you the growth potential you need to help achieve your goals.
- The potential for growth: The interest earned on the account you select will be determined by the performance of the associated index, or Exchange Traded Fund (ETF) and the crediting method of the account (e.g. earnings cap, participation rate, etc.).
- A level of protection: Each index account typically provides some level of protection, through downside options such as buffers or floors. For example with a buffer strategy, if performance of the index or ETF is negative, your losses are typically reduced by the buffer percentage selected. While you can lose money with this strategy, this option helps lessen the impact of negative performance.
Annuities are intended for retirement investing; therefore withdrawals made from an annuity before age 59½ may be subject to a 10% IRS tax penalty.
If you use an annuity within a retirement plan that is already tax-deferred, such as an IRA, the annuity doesn’t provide any additional tax deferral.
Take the next step
Ameriprise Financial can help you plan for a more confident retirement with a structured annuity.
Be sure to talk to a financial advisor about the annuity's features, benefits, risks and fees, and whether the annuity is appropriate for you, based on your financial situation and objectives.
Most annuities have a tax-deferred feature and so do many retirement plans under the Internal Revenue Code. As a result, when you use an annuity to fund a retirement plan that is tax-deferred, your annuity will not provide any necessary or additional tax deferral for that retirement plan. But annuities do have features other than tax deferral that may help you reach your retirement goals. You should consult your tax adviser prior to making a purchase for an explanation of the tax implications to you.
Policies and features may not be available in all states or may vary by state.
Structured annuities are insurance products that are complex, long-term investment vehicles and are subject to risk, including the loss of principal. Before you purchase, be sure to ask your financial professional about the annuity's features, benefits, and fees, and whether the annuity is appropriate for you, based on your financial situation and objectives.
Withdrawals are subject to income taxes, and withdrawals before age 59-1/2 may incur an IRS 10% early withdrawal penalty.
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Are not FDIC insured
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May lose value
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Are not bank guaranteed
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Are not insured by any Federal Government Agency
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