Variable Annuities · Educational Guide
Considering a variable annuity? Start with a clear understanding of investment risk, costs, and contract features.
Variable annuity values fluctuate with the underlying investment options, so they involve market risk, including the possible loss of value. Costs and contract features vary and deserve a careful review.
Planning-first, not product-first
Salem, NH — serving NH, MA, and New England
Educational, no-pressure conversations
Coordination with your CPA and attorney where appropriate
The basics
What a variable annuity generally is
A variable annuity is an insurance contract with underlying investment options. Because values fluctuate with those investments, variable annuities involve market risk, including potential loss of value.
Contracts may include optional insurance benefits or riders, each with its own cost and conditions. Total expenses, investment choices, surrender terms, and tax treatment should all be reviewed before a decision.
- An insurance contract with underlying investment options subject to market risk
- Values fluctuate and may lose value
- Optional riders may add insurance features at additional cost
- Any guarantees are subject to the insurer's claims-paying ability and contract terms
- Tax treatment differs from taxable accounts and should be reviewed with your tax professional
Trade-offs worth reviewing
- Total costs, including contract charges, fund expenses, and rider fees
- Market risk within the chosen investment options
- Surrender schedules and liquidity limitations
- Complexity of contract features and rider conditions
- Not suitable for every investor
Before you decide
Questions to consider before choosing a variable annuity
What are the total costs, including contract, fund, and rider charges?
What investment options are available inside the contract?
What are my liquidity needs over the next several years?
What are the surrender terms and charges?
What guarantees, if any, are subject to the insurer's claims-paying ability and contract terms?
How does this fit with my other retirement assets and income plan?
Guide
Variable Annuity Review Checklist
Use this checklist to review total costs, investment options, liquidity, surrender terms, and contract features of a variable annuity you own or are considering.
What happens next
- 1We confirm your request and send the guide you asked for.
- 2A brief call to understand your situation and the questions on your mind.
- 3If it makes sense, we schedule a longer conversation. If not, you keep the guide and there is no follow-up pressure.
Questions people ask
Frequently asked questions
Yes. Values fluctuate with the underlying investment options and may lose value. Any insurance guarantees are separate and subject to the insurer's claims-paying ability and the contract terms.
Based in Salem, New Hampshire, Guardian Financial Services works with individuals, couples, families, and business owners throughout southern New Hampshire, Massachusetts, and the broader New England region.
Have a conversation before you make a decision.
A short, no-pressure conversation can help you understand the trade-offs and whether any next step makes sense for your situation.
Important disclosures
Variable annuities are long-term investment alternatives designed for retirement purposes. Withdrawals of taxable amounts are subject to income tax and, if made prior to age 59 1/2, may be subject to a 10% federal tax penalty. Early withdrawals may be subject to withdrawal charges. Partial withdrawals may also reduce benefits available under the contract as well as the amount available upon a full surrender. An investment in variable annuities involves risk, including possible loss of principal. The contracts, when redeemed, may be worth more or less than the original investment.
All deferred annuities are long-term investment alternatives designed for retirement purposes. All annuity contract and rider guarantees, or annuity payout rates, are subject to the claims-paying ability of the issuing insurance company, which is solely responsible for obligations under its contracts. Withdrawals will generally be subject to a surrender penalty if redeemed during the surrender charge period and if they are in excess of any free withdrawal provisions. Since annuities grow tax-deferred, any withdrawals made prior to age 59 1/2 may be subject to a 10% federal tax penalty in addition to any gains being taxed as ordinary income.