INVESTMENTS - ANNUITIES

An annuity is an insurance company contract that offers a choice of underlying investments. Investment earnings compound tax-deferred until you withdraw them, usually after you retire. And, unlike most tax-deferred retirement plans, annuities typically do not have a legal limit on how much you may invest each year, and you may invest as often as you wish.

Annuities are designed to allow you to accumulate funds for retirement and enjoy the benefits of tax deferral. Annuities are the only financial planning tool that can help you save and provide you with a variety of payout options, including an income that is guaranteed for the rest of your life, no matter how long you live.

Tax Deferred Accumulation - The power of tax deferral allows you to increase the earning power of your annuity. By deferring the taxation of the interest that your annuity earns, you will accumulate more interest through triple compounding. The principle that you have deposited into your annuity earns interest, the interest that you have earned will earn interest, and the tax that you have deferred each year will be earning interest.

Guaranteed Income - Annuities offer a special benefit by providing an income that you cannot outlive. When you elect to begin receiving regularly-scheduled payments from your annuity, you will have the option of taking payments over a fixed period of time, for a specified amount of payment, or for the rest of your life. A life income option will provide regular payments for as long as you live, guaranteed.

With a tax-deferred annuity you have control over when you pay the taxes on the interest that your account has earned. You do not pay taxes until you decide to make a withdrawal from your annuity. This creates an advantage by allowing your money in a tax-deferred account to accumulate and grow faster than a taxable account. If withdrawals are taken from your annuity after you have retired, you may be in a lower tax bracket enabling you to pay less in taxes on the earnings of your annuity.

Under current tax law, withdrawals are treated by the IRS as having been paid first from interest earnings, which are taxable to the owner as regular income. Withdrawals taken before the owner reaches age 59½ may be subject to a 10% IRS penalty on the taxable portion.

Note: An investment in an annuity is not a deposit nor obligation nor guarantee by any bank. Neither the Federal Deposit Insurance Company (FDIC) nor any other agency insures annuities.

Contact a State Street Investment Center representative at (888) 879-2183 or email us for more detailed information on annuities.

Investment Products Offered
Are Not A Deposit
Are Not FDIC-Insured
Are Not Insured By Any Federal Government Agency
Are Not Guaranteed By The Bank
May Go Down In Value

Securities offered through United Heritage Financial Services, Inc.
707 E. United Heritage Ct,   Meridian, ID 83642
Member NASD, SIPC          1-800-657-6351

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