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*          Investments and Insurance
Investments and Insurance > Variable Annuities

Connecting Investment Choices and Tax Deferral in One World

Important Features Of A Variable Annuity*:

Transfer privileges
Enable you to move money from one investment to another as your goals or your outlook change. There's no charge and there are no tax consequences.

There's no initial sales charge on your investment.
All of your money goes to work right away. However, please keep in mind that a surrender charge may be applied for premature withdrawals.

A guaranteed death benefit
Assures that if the annuitant dies before payouts begin, the beneficiaries will receive either the amount placed in the contract (minus withdrawals) or its current value - whichever is greater - free of probate.1

Withdrawal privileges
Allow your first withdrawal each year - up to a specified percentage of the amount that you invested - to be exempt from any contingent deferred sales charge.

This can generally be up to 10%, as the amount can be withdrawn. Withdrawals in excess of this amount may be subject to surrender penalties as outlined in the product prospectus. The prospectus should be read carefully before investing.

A 10% tax penalty generally applies to withdrawals of earnings made before age 59-1/2, with certain exceptions in cases of death or disability and other situations. Consult your tax advisor for further details.

Build a World of Investment Choices with a Variable Annuity

Tax-Deferred Accumulation
A variable annuity, with its tax-deferred advantage, can play an important role to help you accumulate assets for the future. All your earnings are automatically reinvested and grow on a tax-deferred basis. You pay no income taxes on them until you choose to make withdrawals or receive income. The taxes you save now can help you build wealth for the future.

Investment Options
A variable annuity is a contract between an investor and a life insurance company intended to be utilized as a long term investment. With a variable annuity, you have the opportunity to invest in a variety of market instruments with the benefit of professional fund management. You can select from portfolios spanning a broad range of investment options that can be used for a variety of financial objectives. You can also choose to allocate a percentage of your investment into a fixed interest account.

Does A Variable Annuity Suit Your Needs?
Two of the major obstacles to overcome when you plan your retirement program are taxes and inflation. A variable annuity is a tax-favored investment that allows your earnings - whether they are from interest, dividends, or capital gains - to grow tax-deferred. This means your current tax bill is reduced, so more of your money keeps working for you. Investors seeking an alternative to insured bank-related deposits find variable annuities a popular choice.2

However, keep in mind that, unlike many bank products, variable annuities are not FDIC-insured, may lose value and offer no bank guarantee. Annuities continue to be one of the few tax-advantaged vehicles after congress' the recent tax reforms.

A few questions you should answer before considering a variable annuity:

What Are Your Goals?
Annuities may be a good choice for funding your retirement needs. You should plan early to benefit from compounded tax-deferred earnings to ensure a rewarding, secure retirement.

What Is Your Tax Bracket?
The higher your tax bracket, the more benefit you may derive from tax deferral. If you are in one of the higher federal tax brackets, and you pay state and local income taxes, a variable annuity helps to save you money.

What Is Your Time Frame For Investing?
Generally speaking, it is best to view a variable annuity as a long-term investment, allowing a minimum of five years for earnings growth.

What Payment Option Is Best For You?
A variable annuity may be more effective when you elect to annuitize. This has the ability to reduce your tax liability on each payment. The rest of your investment will continue to enjoy tax-deferred status. You have a wide choice of payment options, ranging from periodic withdrawals to a fixed monthly payout for your lifetime.1

Are You Hesitant To Invest In Equities?
A variable annuity allows you the flexibility of keeping a percentage of your money in a fixed interest account 1, and the remainder in investments which have potential for faster growth.

1Guarantees are backed by the claims-paying ability of the insurer.

2Investment return and principal value of an investment will fluctuate, and an investor's shares, when redeemed, may be more or less than their original cost.

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.

*Securities offered through LPL Financial, member FINRA / SIPC. Insurance products offered through LPL Financial or its licensed affiliates. New York Community Bank, New York Commercial Bank and Investment and Insurance Services are not registered broker/dealers and are not affiliated with LPL Financial.

Not FDIC Insured No Bank Guarantee Not a Deposit
May Go Down In Value Not Insured by Any Federal Government Agency
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