Index Annuities Disclosure
Indexed annuities are insurance contracts that, depending on the contract, may offer a guaranteed annual interest rate and some participation growth, if any, of a stock market index. Such contracts have substantial variation in terms, costs of guarantees and features and may cap participation or returns in significant ways. Any guarantees of the term. Withdraws are taxed as ordinary income and, if taken prior to 59, a 10% federal tax penalty. Investors are cautioned to carefully review an indexed annuity for its features, cost, risk, and how the variables are calculated.