Fixed and Variable Annuities

How does a predictable stream of retirement income sound?

For investors especially concerned with generating additional income in retirement, annuities offer a means of achieving that goal.

  • Fixed annuities offer a guaranteed* fixed rate of return for a specified period of time and can provide a protected income stream when annuitized.
  • Variable annuities1 provide investment growth opportunities, along with the ability to purchase optional living benefit riders for an additional fee, to ensure a guaranteed lifetime income regardless of how the annuity performs.
  • Immediate annuities can be designed to provide an additional guaranteed income stream for a pre-determined number of years or for life, in exchange for a lump sum payment to an insurance company.

Why add an annuity to your portfolio?

  • Delivers an additional source of guaranteed income in retirement to help cover your expenses
  • Offers another way to obtain tax-deferred growth if you’ve maxed out your 401(k) and IRAs – with no contribution limit
  • Through optional riders, which involve additional fees, allows you to protect all or a portion of your investment from market losses
  • May lower your overall portfolio risk, allowing you to be more aggressive when investing other assets

Important Note: Like other tax-deferred savings, annuities carry a tax penalty if assets are withdrawn prior to age 59½, plus they are subject to regular income tax on earnings.

Why work with a SunTrust Investment Services advisor (STIS) to find the right annuity?

  • Access some of the most innovative products from leading insurers
  • We’ll help you unravel the complexity of choices, insurers and optional riders to find the solution that best aligns with your needs

Will your retirement income be enough?

While estimates vary, most advisors suggest a good rule of thumb for a comfortable retirement is to plan on replacing at least 70% of your pre-retirement income.

For someone earning $100,000 that means you’ll need around:

Will your retirement income be enough?

 

Learn how our SunTrust SummitView goals-based planning approach can give you a clear view into all your stocks, bonds, retirement and savings accounts, allowing you and your advisor to better align your investments to your goals and objectives.

DISCLAIMERS

* All guarantees are subject to the claims paying ability of the issuing insurance company.

An annuity is an insurance product designed for long-term savings. There are considerations to keep in mind, such as a surrender-charge period on full surrenders and on certain withdrawals. Account value will be impacted by withdrawals. These vary by contract so you want to ensure you are aware of these elements before you purchase an annuity. Withdrawals may be subject to federal and/or state income taxes. An additional 10% federal tax may apply if individuals make withdrawals or surrender their annuity before age 59 ½.

1 Variable annuities are long-term investments and involve fees and expenses not typically associated with other investments. Surrender charges may apply in the early years of an annuity contract. Earnings will be taxed as ordinary income at withdrawal. Withdrawals prior to age 59½ may be subject to a 10 percent penalty. Variable annuities values fluctuate so that an investor’s shares, when redeemed, may be more or less than their original cost. Investing in variable annuities through a tax-deferred retirement plan such as an IRA will gain no additional tax advantages, and under these circumstances one should consider buying an annuity only if it makes sense because of other features, such as lifetime income payment and death benefit protection.

Investors should carefully consider the investment objectives, risks, and charges and expenses of a variable annuity before investing. This and other information can be found in the prospectus for the contract and its underlying investment options which can be obtained from your investment consultant. Please read it carefully prior to investing.

 

877.962.9032
Contact the STIS Client Advisory Center

Find a SunTrust Location

Go

Investing & Retirement Resource Center

  • Will Caring for Aging Parents Threaten Your Retirement?

    The financial obligations associated with caring for an aging parent can often coincide with other priorities. Of course you want to help out when possible; just don’t jeopardize your own future.

  • A Fresh Perspective on Retirement Income

    Faced with the potential to live 30+ years in retirement, the traditional approach to retirement income may no longer make sense.

  • Big Life Change? Three Retirement Rules of Thumb to Follow

    Big life changes can dramatically change how much money you’re able to save each month. Keep in mind these rules of thumb when life shakes things up.

  • Staying on Track with Your Retirement Investments

    Investing for your retirement over the long term takes a little knowledge and discipline. Though there can be no guarantee that any investment strategy will be successful—and all investing involves risk—there are ways to help yourself build your retirement cushion.

  • Donor Advised Funds: Family Giving Made Easy

    In 2014, Americans gave more than $358 billion to charity with nearly three-quarters of that amount coming directly from individuals. And while much of these donations come in the form of direct cash gifts, more and more individuals are turning to planned.