Future Considerations
Plan ahead for rising costs.
Planning For Rising Costs
Retirement expenses may increase over time. Healthcare, housing, taxes, insurance, travel, and everyday living costs can all affect purchasing power.
A retirement income strategy should consider how rising costs may affect your future income needs.
Some variable annuity features may be designed to help address rising income needs through contract-specific mechanisms such as income step-ups, benefit base adjustments, or other rider features. These features vary by product and are subject to contract terms, fees, limitations, and eligibility requirements.
A variable annuity should not be viewed as guaranteed inflation protection unless the contract specifically provides such a feature. Investors should review how any income increase feature works, what conditions apply, and whether withdrawals, market performance, fees, or contract terms may limit the benefit.
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Market Participation and Market Risk
Variable annuities may allow investors to participate in market performance through underlying investment options. These options may include equity, fixed income, asset allocation, or other investment choices depending on the contract.
Because the investment options are market-based, the contract value may increase or decrease. Investors can lose money.
Optional income features may provide certain retirement income benefits, but they do not eliminate all risks. It is important to understand the difference between:
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Contract value
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Benefit base
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Withdrawal amount
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Guaranteed income feature
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Death benefit value
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Surrender value
These values may not be the same.
Costs and Fees Matter
Variable annuities typically have fees and expenses that should be reviewed carefully.
These may include:
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Mortality and expense risk charges
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Administrative fees
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Investment option expenses
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Optional rider fees
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Surrender charges
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Contract fees
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Other product-specific expenses
Fees can reduce contract value and investment performance. Optional benefits may provide value to certain investors, but the cost of those benefits should be weighed against the investor’s needs, goals, and available alternatives.
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Liquidity and Surrender Charges
Variable annuities are designed as long-term retirement products. They may not be appropriate for investors who need short-term access to their money.
Withdrawals during the surrender charge period may be subject to surrender charges. Withdrawals may also reduce the contract value, income benefits, death benefits, or other optional features.
Before purchasing a variable annuity, investors should consider whether they have enough liquid assets outside the annuity for emergencies, short-term needs, and unexpected expenses.
Tax Considerations
Variable annuities offer tax-deferred growth potential. This means taxes on earnings are generally deferred until withdrawals are taken.
Withdrawals are typically taxed as ordinary income to the extent of earnings. Withdrawals before age 59½ may be subject to an additional 10% federal tax penalty.
Tax treatment may vary based on account type, ownership structure, distribution method, and individual circumstances. Infinity Financial Services does not provide tax or legal advice. Investors should consult their tax or legal advisor before purchasing a variable annuity or taking withdrawals
Family, Legacy, and Long-Term Planning
For some investors, retirement income planning may also include family and legacy considerations. Certain variable annuities may offer death benefit options or other contract features that may be relevant to long-term planning.
These features vary by product and are subject to contract terms, fees, limitations, and restrictions. They should be reviewed carefully before investing.
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Ask the right questions at the right time.
Learn whether or not a Variable Annuity is the right choice for your retirement.
Infinity Financial Services can help you evaluate whether a variable annuity may fit within your broader retirement income plan. We will help you understand the potential benefits, costs, limitations, and risks before you make a decision.
Important Disclosures
Variable annuities are long-term, tax-deferred investment vehicles designed for retirement purposes. They involve investment risk and may lose value.
Optional benefits are available for an additional cost and are subject to contract terms, conditions, limitations, and restrictions. Guarantees are subject to the claims-paying ability of the issuing insurance company and do not apply to the performance of the underlying investment options.
Withdrawals may be subject to ordinary income tax and, if taken before age 59½, may be subject to an additional 10% federal tax penalty. Withdrawals may also be subject to surrender charges and may reduce contract value, death benefits, and optional living benefits.
Investors should carefully consider the investment objectives, risks, charges, and expenses of a variable annuity and its underlying investment options before investing. This and other information is contained in the prospectus. Please read the prospectus carefully before investing.
This material is for educational purposes only and is not a recommendation to purchase, sell, hold, or exchange any variable annuity. Product availability, features, benefits, riders, fees, and limitations vary by contract and state.
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[Placeholder: Insert Jackson-required product disclosures.]
[Placeholder: Insert broker-dealer disclosure, FINRA/SIPC language, insurance license disclosure, and state-specific disclosures.]
[Placeholder: Insert Infinity Financial Services and Infinity Financial Services Advisory capacity disclosure.]