An annuity offers options under Investments 101 an

							                                                                                 An annuity offers options under

Investments 101                                                                  an insurance contract which includes
                                                                                 mortality and expense risk charges
                                                                                  as well as providing for lifetime
Choosing the right vehicle for your                                              payments. An annuity is a long-term
investment needs                                                                 investment designed for retirement
                                                                                 purposes. Early withdrawals may be
                                                                                 subject to a deferred sales charge
Whether you’re shopping for a          • Minimum death benefits –                and if taken prior to age 59½, an IRS
new car or saving for your future,       Provides potential payout to            10% premature distribution penalty tax
choosing the right vehicle can           beneficiaries after death.              may apply. Money distributed from an
mean everything. Understanding         • Flexible payment options –              annuity will be taxed as ordinary income
all your options is critical to          Allows you to invest a lump sum         in the year the money is received.
making a smart decision. As              or make periodic payments, or
a potential investor, are you            even defer payments until after         Employer Sponsored
comfortable with your knowledge          retirement.                             Retirement Plans
of the basic types of investments      • Guaranteed minimum income               Employer sponsored retirement
available to you?                        (optional) – Includes choice of         plans, considered one of the most
                                         “payment for life,” which allows        effective retirement savings plans, are
Know your options
                                         you to be paid monthly, even if         commonly known as 401(k), 403(b) or
When buying a new car, you need          you live beyond the years of the
to understand all options available                                              457(b) Deferred Compensation plans
                                         predicted annuity phase.                (depending on the type of employer).
to you before making any decisions.
Investing for your future is no        Note with guaranteed minimum              Typical features include:
different. A simple understanding      income option, if you die prior to        • Pre-tax contributions – You’re
of the basic investment options can    the end of the annuity phase, your          only taxed on the amount left in your
help you make smarter decisions        account value at time of death may          paycheck after your contribution – so
about how you invest your money.       affect the value of your death benefit.     you’re paying less in current taxes. It’s
Only then can you be sure you’ve       All guarantees with annuities are           like you’re paying yourself to invest in
chosen the right vehicle to meet       based on the claims-paying ability          the plan.
your personal investing needs.         of the issuing company.                   • Tax-deferred growth potential –
                                                                                   Your earnings and contributions
                                       Annuities are available with a wide         generally aren’t taxed until you
Variable Annuities                     range of options and possibilities,         withdraw from the plan, so your
An annuity is an insurance             each serving different purposes for         earnings can grow tax-deferred as
contract and a securities investment   different types of investors. Fixed         the interest compounds.
component that provides regular        annuities, for example, offer
periodic payments for a specified      investments with a guaranteed
period of time. Features of            rate of interest for a specified time
annuities include:                     period; while variable annuities
• Tax deferred growth potential        typically offer a range of investment
  – Your earnings generally aren’t     options, allowing you to be more
  taxed until you withdraw from        aggressive or conservative.
  the contract.
• Paycheck deductions –                                     Mutual Funds                                                 Government Bonds
  Contributions to the plan are                             A mutual fund is an investment                               A Government Bond is an
  automatically deducted directly                           vehicle managed by a professional                            investment guaranteed by the U.S.
  from your paycheck, allowing you                          money manager that allows a group                            government (the issuer) and typically
  to put a percentage of your gross                         of investors to pool their money                             held for 10 to 30 years. When held
  pay into an account.                                      together with a predetermined                                to maturity, they offer value of
Employer sponsored retirement plans                         objective. Mutual funds range from                           principal and a fixed rate of return,
typically offer different investment                        conservative investments, such as                            which varies depending on the
options and contribution limits.                            money market funds, to those that                            type of bond purchased.
With some plans, your employer                              invest in more aggressive options,
may match a percentage of what                              such as new technologies and                                 The return and principal value of
you contribute to the plan – adding                         emerging markets. Among the                                  investing in a stock mutual fund
to your savings. Note that early                            benefits of mutual funds are:                                or variable annuity funding option
withdrawals are generally permitted                         • Professional money                                         fluctuates with changes in market
from most plans; however, a                                   management – Provides                                      conditions. Stocks may offer greater
penalty is usually involved, as                               professional expertise while                               growth potential in comparison to
well as ordinary income taxes.                                requiring less personal                                    bonds, but carry more risk. The principal
                                                              commitment of time compared                                value of a bond varies inversely to the
IRAs                                                          to investing in individual stocks                          rise and decline of interest rates. Bonds
An IRA, or Individual Retirement                              or other securities.                                       typically offer a fixed rate of return, if
Account, is similar to an employer                          • Automatic diversification and                              held to maturity. However, bonds may
retirement plan, but you set it up                            asset allocation – Helps reduce                            contain a call feature that may be
for yourself. Typical features of                             portfolio risk by ensuring your                            exercised prior to maturity.
an IRA include:                                               money remains spread among a
                                                              variety of investments and                                 Certificate of Deposit (CD)
• Tax deferred growth potential
  – Pay no current income taxes on                            different asset classes consistent                         A CD is a savings vehicle offering
  your investment earnings until                              with the fund’s stated goals.                              a fixed rate of return (like a
  you withdraw.                                                                                                          government bond), but can be
• Pre-tax contributions – Deduct                            A mutual fund is a professionally                            purchased from banks, which
  contributions from your annual                            managed investment company that                              means it is FDIC insured. When
  income, reducing the amount you                           invests in specific stocks, bonds, options,                  your investment matures (either
  owe in current taxes (depends on                          futures, currencies, or money market                         in months or years, depending on
  your employment situation).                               securities. The investment manager                           the CD you purchase), you can cash
• Investment options – Take                                 chooses which securities to invest in                        in the CD and receive its face value,
  advantage of a wide range of                              based on the fund's objective and its                        plus the interest.
  investment options (with most                             diversification requirements. An investor
  IRAs). IRAs come in many forms,                           should assess the risk/reward potential                      Bank certificates of deposit are FDIC
  with different features, benefits                         of any investment based on his/her                           insured up to applicable limits and offer
  and contribution limits. Options                          personal risk tolerance.                                     a fixed rate of return. [Variable annuity
  for transferring an employer                                                                                           returns/mutual fund yields] and principal
  retirement plan into an IRA                               • Wide range of investment                                   will fluctuate with market conditions.
  are available as well. For more                             options – Allows you to choose
                                                                                                                         What vehicle is best for you?
  information, see our Special                                a fund according to your specific
  Report on “Making Sense                                     investment goals and risk                                  Contact your SBA representative to
  of Your IRA Choices.”                                       tolerance. With the right fund                             learn more about these investment
                                                              management company, mutual                                 vehicles. Be sure you are choosing
                                                              funds could provide a good                                 one that meets your financial goals!
                                                              investment opportunity that
                                                              could complement an employer
                                                              sponsored retirement plan or IRA.

  You should consider the investment objectives, risks, charges and expenses of the variable product and its underlying
  fund options; or mutual funds offered through a retirement plan, carefully before investing. The prospectuses/prospectus
  summaries/information booklets contain this and other information, which can be obtained by contacting your local
  representative. Please read the information carefully before investing.




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4450 Old Canton Road, Suite 107, Jackson, MS 39211.
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