SUMMARY

1. An annuity is not for everyone.
2. Tax-deferred accumulation, the potential of guaranteed income, the flexibility to choose a return based on guaranteed interest rates, an index, or portfolio, and probate advantages are some of the benefits to owning an annuity.
3. Withdrawals from an annuity issued after August 14, 1982, are subject to ordinary income taxes and a possible 10% federal excise tax penalty for withdrawals prior to age 59.5.
4. A non-qualified annuity can be exchanged for another annuity income tax-free if the right steps are followed.
5. The average age of owners of non-qualified annuities is age 65¹.
6. Twenty-eight percent of owners of fixed annuities purchased their first annuity under the age of 50 in contrast to 52% of owners of variable annuities¹.
7. Ninety-one percent of annuity owners still own the first annuity that they purchased².