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David P. McCabe,
WMCP®, ChFC®, CLU®
Financial Planner
Nathaniel D. High, RICP®
Financial Planner
Nicholas J. Over, CFP®
Financial Planner
Sara E. Martin
Client Relations Manager
Jennifer A. McCabe
Client Relations Specialist
jennifer.mccabe@prudential.com
Centuria Financial Group
2333 Baltimore Blvd Suite B
Finksburg, MD 21048
Phone: 443-952-7232
January/February 2023
What You Should Know About Annuities
Retirees who are concerned that their savings and investments won’t be enough to sustain them throughout retirement may want to consider purchasing an annuity. Annuities can provide a stream of income for as long as you live or for a specified number of years. When it comes to the timing of purchasing an annuity, you essentially have two options: immediate or deferred.
1. Immediate Annuity
This is the simplest type of annuity. You make a single lump sum payment to an insurance company. In return, you receive a fixed stream of income for your lifetime or a fixed period. Payments start soon after you purchase the annuity, usually within a year.2. Deferred Annuity
You make premium payments over time, then take income sometime in the future, allowing your money to potentially grow.More Choices
Annuities differ further, depending on the type of annuity and the options offered. Variations exist within each of these two categories, but below are the broad definitions.Fixed Annuities
Fixed annuities offer a guaranteed rate of return on contributions and guaranteed income later. A fixed annuity may be appropriate for someone interested in low risk. However, their lack of inflation protection may be a disadvantage.Variable Annuities
A variable annuity is an investment account that grows tax deferred and offers a range of investment options (called subaccounts). The value of the account depends on the performance of the type of investments you choose. As with any investment, variable annuities involve risk and are not appropriate for short-term goals.Indexed Annuity
An indexed annuity typically promises to provide returns linked to the performance of a market index. Indexed annuities are complex products, and you can lose money if the market index declines.It’s important that you consult your financial professional because of the multitude of conditions, requirements, fees, and suitability.
*Annuity products are not FDIC-insured, and their guarantees are backed solely by the claims-paying ability of their issuing life insurance company. Distributions from annuities are taxed as ordinary income and, if taken prior to reaching age 59 1/2, may be subject to an additional 10% IRS tax penalty.
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Centuria Financial Group is not affiliated with Prudential Financial. Centuria Financial Group sells insurance products of Prudential Financial's affiliated insurance companies in addition to products of non-affiliated insurance companies. Centuria Financial Group is authorized to sell and service certain insurance products of Prudential Financial companies as well as use this material. Centuria Financial Group and its representatives do not give tax or legal advice. Please consult with your own advisors regarding your particular situation. Offering financial planning and investment advisory services and programs through Pruco Securities, LLC (Pruco), under the marketing name Prudential Financial Planning Services (PFPS), pursuant to a separate client agreement. Offering insurance and securities products and services as a registered representative of Pruco, and an agent of issuing insurance companies. 1-800-778-2255. Sara E. Martin and Jennifer McCabe are employed by David McCabe and not The Prudential Insurance Company of America or its subsidiaries.
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