Annuities 101, Part 3: What is a Registered Index-linked Annuity?
What is an annuity? Part three of Jackson’s three part series explains what a registered index-linked annuity (RILA) is and how it can help you on your retirement journey.
A RILA is a long-term, tax-deferred vehicle designed for retirement. It is subject to investment risk, its value will fluctuate, and loss of principal is possible. A RILA, which is an insurance contract, allows you to choose how you want to prioritize growth opportunities while managing the amount of loss you may assume. Earnings are taxable as ordinary income when distributed. Individuals may be subject to a 10% additional tax for withdrawals before age 59½ unless an exception to the tax is met.
Let's talk about Registered Index-linked Annuities
An age-old challenge investors face is how to invest and grow retirement assets without losing all their principal. A registered index-linked annuity may help you grow your assets, protect your principal, and invest your way.
A registered index linked annuity allows you to customize how you can seek growth opportunities for retirement. You can choose from a variety of well known passively managed indices†, to track the performance during the contract period. While the annuity's contract value may still be subject to loss of principal, it does provide growth opportunities up to a stated cap or growth rate.^
Ask your financial profesional about growing your assets.
Growth investments are essential to a balanced retirement portfolio — yet selecting a diversified pool of equity investments can be challenging. That’s why some investors choose products that offer built-in diversification* benefits and simplicity by tracking the performance of an equity index.
Ask your financial profesional about protecting your principal.
A RILA can help you manage investment risk by allowing you to determine the level of protection you may want to help cover you during market downturns.
You can select buffer protection, which helps you weather smaller bumps in the road by protecting your investment up to a specified market loss. Or you can specify a maximum loss limit with floor protection against catastrophic market events.
Ask your financial profesional about investing your way.
Registered index-linked annuities allow you to select an index option period and with each term you can choose a crediting method and protection option. When your term expires, you are able to reallocate those dollars to another term, index, protection option, and crediting method without unwanted tax consequences. This allows for complete flexibility and the opportunity to adapt based on your needs.
Contact your financial professional today to help determine if a registered index-linked annuity is appropriate for your retirement plan.