Find out how an annuity may provide supplemental retirement income and tax-deferred growth. Learn more about the types of annuities offered by M&T Securities, Inc.
What is an annuity?
Annuities may offer tax-deferred growth, value and a payment stream that begins immediately or at some future date.
Fixed Annuities vs. Variable Annuities
- Fixed annuities. These pay interest at fixed rates set and guaranteed by the issuing insurance company
- Variable annuities. With variable annuities, annuity value and earnings fluctuate with the market value of the underlying subaccounts chosen by the annuity owner
Considerations When Purchasing an Annuity
You may want to consider the following before purchasing an annuity:
- Annuities are tax-deferred – the contract owner does not pay taxes on the growth of their investment until withdrawals begin
- Annuities are designed for long-term investing and there are generally surrender charges for early withdrawal
- Withdrawals prior to age 59½ may be subject to a 10% IRS penalty
- Additional benefits might be available under riders at an additional cost
- Depending on the contract you purchase, if you surrender your contract, you may receive less than the money you put into it
- Any annuity is dependent on the continued claims-paying ability of the issuing insurance company
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Variable annuities are sold by prospectuses, which contain more complete information including fees, contingent deferred sales charges, and certain insurance related charges including, but not limited to, mortality and expense charges, and administrative fees. As with any investment, investing in variable portfolios involves risk, including possible loss of principal. Past performance is no guarantee of future results.
Guarantees are based on the claims-paying ability of the issuer.