Annuities

An annuity, usually sold by an insurance company, is either a fixed contract or a variable contract. The biggest difference lies in the accumulation period of each. In a fixed annuity, the contract
offers a guaranteed interest rate which the insurance company credits to the policy. It gives a competitive return that is very safe. A variable contract, however, allows the premium to be allocated among a number of investment portfolios which is subject to market risk, including the possible loss of principal. The owner of the policy can feel safe knowing that if he/she dies, the beneficiaries will receive a Guaranteed Death Benefit even when the market is down.

Variable annuities are long-term, tax-deferred investment vehicles designed for retirement purposes and contain both an investment and insurance component. They are sold only by prospectus. Guarantees are based on claims paying ability of the issuer. Withdrawals made prior to age 59 ½ are subject to 10% IRS penalty tax and surrender charges may apply. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. The investment returns and principal value of the available sup-account portfolios will fluctuate
so that the value of an investor’s unit, when redeemed, may be worth more or less than their original value.

Call (808) 356-5199 to speak with one of our financial consultants to learn more about annuities.

The LPL Financial Registered Representatives associated with this site may only discuss and/or transact securities business with residents of Hawaii.

Securities and Insurance products offered through LPL Financial and its affiliates. Member
FINRA / SIPC.

NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE | NOT A DEPOSIT | NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY