How can annuities help my portfolio in a turbulent market?
Regardless of market conditions, annuities are one of the most popular and flexible ways to maximize the power of tax deferral. Since you pay no income tax on your earnings until you withdraw your money or begin receiving payouts, your earnings accumulate tax deferred so your money can grow faster than it would in a taxable account. In addition, most of the annuities available through SunTrust Investment Services, Inc. offer return of principal guarantees, which are backed by the claims paying ability of the issuing insurance company. Electing a return of principal guarantee, which may carry an additional fee, means you never have to worry about losing the premium you put into a policy. Investing in an annuity within a tax-deferred account such as an Individual Retirement Account (IRA) will provide no additional tax savings. Annuities involve fees and expenses not typically associated with other investments. Speak to your investment professional to see if an annuity is right for you.
