Annuities
An annuity is an additional way to diversify your investments while any growth on the investment and its earnings are tax deferred until withdrawals begin. Annuities include a contract between yourself (investor) and the issuing company. There are two phases for annuities: accumulation and payout phase:
- Accumulation phase: a fixed deferred annuity generally offers guarantee of principal and a guaranteed interest rate for a set period of time by the issuing insurance company
- Payout phase: gives several options on structuring your income payment to complement your other retirement income sources
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Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker/dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. IBC Bank and IBC Investment Services are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using IBC Investment Services and may also be employees of IBC Bank. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of IBC Bank or IBC Investment Services. This site is designed for U.S. residents only. The services offered within this site are offered exclusively through our U.S. registered representatives. LPL Financial registered representatives associated with this site may only discuss and/or transact securities business with residents of the following states: Alabama, Arkansas, Arizona, California, Colorado, Delaware, Florida, Georgia, Indiana, Kansas, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Virginia and Washington.
Securities and insurance offered through LPL or its affiliates are:
Securities and insurance offered through LPL or its affiliates are:
| Not Insured by FDIC or Any Other Government Agency |
Not Bank Guaranteed | Not Bank Deposits or Obligations | May Lose Value |
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Fixed Annuity
Conservative investments earning a fixed rate of return, much like a bank CD*, for a specified term, typically anywhere from 5-7 years. A deferred annuity is a long-term personal retirement account designed to help grow your assets and provide a steady stream of income once you are retired.
- CDs are FDIC insured and offer a fixed rate of return if held to maturity. Annuities are not FDIC insured.
* Annuities are long-term, tax-deferred investment vehicles designed for retirement purposes. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Withdrawals made prior to age 59½ are subject to 10% IRS penalty tax. Surrender charges apply. Guarantees are based on the claims paying ability of the issuing insurance company.
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Equity Indexed Annuity
Fixed annuities that earn interest or provide benefits that are linked to an external equity index. Annuity helps protect against loss of principal and credited interest from market declines.
- Equity indexed annuities are not suitable for all investors. Possible surrender charges and the combination of caps and participation rates associated with a particular product are factors that should be considered prior to purchasing an equity-indexed annuity. Equity indexed annuities are long-term, tax deferred investment vehicles designed for retirement purposes. Surrender charges, IRS taxes and penalties may apply. Early surrender from an equity indexed annuity may result in some loss of principal. Guarantees are based on the claims paying ability of the issuing insurance company and are not FDIC insured.
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Variable Annuity
Combines the features of both an insurance product and an investment product. Annuities allow customers to achieve tax-deferred wealth accumulation through a variety of variable sub-account options.
- Variable annuities are long-term, tax deferred investment vehicles designed for retirement purposes and contain both an investment and insurance component and carry insurance related charges. Withdrawals made prior to age 59½ are subject to 10% IRS penalty and surrender charges may apply. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. 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. You can obtain contract and underlying sub-account prospectuses from your financial representative. Read the prospectuses carefully before investing.
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Immediate Annuity
Helps provide a secure and guaranteed* way to turn retirement savings into retirement income. Provides a secure, tax-advantaged way to receive income from assets. Income payments usually begin soon after the immediate annuity is purchased. Retirees often purchase a single premium immediate annuity with funds received from 401(k) plans, IRAs, saving accounts, the cash value or death proceeds from life insurance or the proceeds from the sale of a home.
- Annuities are long-term, tax deferred investment vehicles designed for retirement purposes.
* Guarantees are based on claims paying ability of the issuer. Withdrawals made prior to age 59½ are subject to 10% IRS penalty and surrender charges may apply. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal.