Citizens Financial Bank customers have access to a complete range of investment products and services through Investment Services at Citizens. Connecting Investment Choices and Tax Deferral in One World: Build a World of Investment Choices with a Variable Annuity Tax-Deferred Accumulation A variable annuity is a long-term investment alternative designed for retirement purposes and contain both an investment and insurance component. A variable annuity, with its tax-deferred advantage, can play an important role in accumulating assets for the future. All your earnings are automatically reinvested and grow on a tax-deferred basis1. You pay no income taxes on them until you choose to make withdrawals or receive income. Withdrawals made prior to 59 1/2 are subject to a 10% IRS penalty tax surrender charges may apply. The taxes you save now can help you build wealth for the future. Investment Options A variable annuity is a contract between an investor and a life insurance company. With a variable annuity, you have the opportunity to invest in a variety of market instruments with the benefit of professional fund management. You can select from portfolios spanning a broad range of investment options that can be used for a variety of financial objectives3. You can also choose to allocate a percentage of your investment into a fixed interest account. Does a Variable Annuity Suit Your Needs? Two of the major obstacles to overcome when you plan your retirement program are taxes and inflation. A variable annuity is a tax efficient investment that allows your earnings--whether they are from interest, dividends or capital gains--to grow tax-deferred. Once withdrawn, they are taxable as ordinary income. This means your current tax bill may be reduced, so more of your money keeps working for you. Investors seeking an alternative to current retirement objectives find variable annuities a popular choice. However, keep in mind, variable annuities are not FDIC insured, may lose value and offer no bank guarantee. Annuities are one of the few tax-efficient vehicles after the recent tax reform. And guarantees are based on the claims-paying ability of the issuing company. A few questions you should answer before considering a variable annuity: What Are Your Goals? Annuities may be the most suitable for funding your retirement needs. You should plan early to potentially benefit from compound tax-deferred earnings that may help you attain a rewarding, secure retirement. What Is Your Tax Bracket? The higher your tax bracket is, the more benefit you derive from tax deferral. If you are in one of the higher federal tax brackets, and you pay state and local income taxes, a variable annuity helps to save you money. What Is Your Time Frame For Investing? Generally speaking, it is best to view a variable annuity as a long-term investment, allowing a minimum of five years for earnings growth. What Payment Option Is Best For You? A variable annuity may be more effective when you elect to annuitize. This has the ability to reduce your tax liability on each payment. The rest of your investment will continue to enjoy tax-deferred status. However, once you elect to annuitize, access to principal is limited2. Additional fees and expenses will apply. Please read the corresponding product prospectus for complete details. You have a wide choice of payment options, ranging from periodic withdrawals to a fixed monthly payout for your lifetime.3,4 Are You Hesitant to Invest in Equities? A variable annuity allows you the flexibility of keeping a percentage of your money in a fixed interest account2, and the remainder in investments which have potential for faster growth5. Important Features of a Variable Annuity Investors should consider the investment objectives, risks, charges and expenses of the variable annuity contract and sub-accounts carefully before investing. The prospectus contains this and other information about the variable annuity contract and sub-accounts. You can obtain contract and underlying sub-account prospectuses from your financial representative. Read the prospectuses carefully before investing. Transfer Privileges enable you to move money from one fund to another as your goals or your outlook change. There's generally no tax consequences. There's no initial sales charge on your investment. All of your money goes to work right away. A surrender charge may be applied for premature withdrawals. Other fees and expenses will apply. Please read the corresponding product prospectus for complete details. A guaranteed2 death benefit assures that if the annuitant dies before payouts begin, the beneficiaries may receive either the amount place in the contract (minus withdrawals) or its current value--whichever is greater--free of probate. Additional fees and expenses will apply. Withdrawal privileges allow your first withdrawal each year--up to a specified percentage of the amount that you invested--to be exempt from any contingent deferred sales charge. Othere fees and expenses will apply. Variable annuities are sold by prospectus only. 1Tax qualified contracts such as IRAs, 401Ks and others are tax deferred regardless of whether they are funded with an annuity. 2Guarantees are based on the claims paying ability of the issuing company 3Investment return and principal value of the available sub-account will fluctuate, and the investor's shares, when redeemed may be worth more or less than their original cost A 10% tax penalty generally applies to withdrawals of earnings made before age 59-1/2, with certain exceptions in cases of death or disability, and other situations. Consult your tax advisor for further details. An Investment in money market is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in it. Securities & Insurance products offered through LPL Financial, & its affiliates, Member FINRA/SIPC. Not FDIC Insured No Bank Guarantee May Lose Value Not A Deposit Not Insured By Any Government Agency The LPL Financial registered representatives associated with this site may only discuss and/or transact securities business with residents to the following states: Illinois, Indiana