For more information, contact the MEMBERS Financial Services Representative serving CUNA Mutual Group for a no cost, no obligation consultation.
Tax-deferred Investing For Your Future Needs
An Excellent Supplement to a Retirement Program
Variable Annuities are insurance contracts designed
to supplement a retirement program, serving as long-term savings vehicles and as
efficient sources of retirement income. When purchasing a variable annuity your
money is invested in separate accounts of the insurer made up of equity and/or fixed income funds.
The value of the annuity and the amount of income
ultimately received is directly related to the performance of the funds that
you've selected. The fund selection process is critical and will vary for each
individual depending on the amount of risk you are willing to incur versus the
return you're seeking.
A number of features make the variable annuity attractive for retirement savings:
your money is tax deferred until withdrawn from the fund.
the ability to transfer money between funds
tax-free should your investment objectives change
payout choices at retirement include a lump sum or
a monthly income guaranteed for life
a guaranteed death benefit by the insurance company (during the accumulation phase) means that your
beneficiaries will receive, at a minimum, no less than your original
purchase payment(s)
a wide selection of variable and fixed funds run by
experienced money managers
Accumulation Period
There are two phases in the life of a variable
annuity, an accumulation phase and a payout phase. In the accumulation phase,
the value of the annuity will increase or decrease depending on the performance
of the selected funds. The accumulation phase continues until the contract
matures.
Payout Period
Upon maturity, the payout stage begins. In the payout phase, as the
annuitant, you will begin receiving monthly payments that can be guaranteed for life. You will have a choice of
payment options, and may receive fixed payments every month, variable payments
every month, or a combination of both. Some companies offer an inflation protected lifetime payout increasing by the Consumer Pricing Index.
Variable payments are based on the performance of the funds in which you've invested and as a result will vary from
month to month. The payout stage continues until the annuitant dies or until the
end of a fixed time period, depending on the payment option selected.
All in all, variable annuities can be a great investment vehicle to help you
achieve a more secure and worry-free retirement.
Variable Annuities are offered by prospectus only. Prospectuses contain more
complete information on management fees, charges, and other expenses and should
be read carefully before investing or sending money.
Variable Annuities are subject to various fees and charges, including surrender charges. Withdrawals taken
before age 59 1/2 may be subject to a 10% federal tax penalty. All guarantees of a variable annuity are based
on the claims paying ability of the insurance company.
Contact Us For More Information
For more information, contact the MEMBERS Financial Services Representative serving CUNA Mutual Group for a no cost, no obligation consultation.
This section contains PDF files which require Adobe Reader 5.0 or higher. If you do
not have Adobe Reader 5.0 or higher, click on the link below. For more help with Adobe Acrobat Reader, click here.
Last Updated 2/17/2010
Representatives are registered, securities are sold, and investment advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor, 2000 Heritage Way, Waverly, Iowa 50677, toll-free (800) 369-2862. Nondeposit investment and insurance products are not federally insured, involve investment risk, may lose value and are not obligations of or guaranteed by the financial institution. CBSI is under contract with the financial institution, through the financial services program, to make securities available to members. CUNA Brokerage Services, Inc., is a registered broker/dealer in all fifty states of the United States of America. The Representative may also be a credit union employee that accepts deposits on behalf of the financial institution.
(3.72 MB)
