| HELPFUL HINTS FROM EXPERTS Taking A New Look At Annuities (NAPSA)—A growing number of individuals looking for new sources of retirement income are ed considering annuities. An annuity is a type of contract betweena pri- vate individual and a financial services or life insurance company. The individual pays a sum of money that is invested and in return the company makes periodic paymentsto the individual as specified in the contract. Annuity earnings are tax de- ferred, which means federal income taxes on gains are not payed until funds are withdrawn. Most annuities allow you to contribute addi- tional money at any time. The Insurance Marketplace Standards Association (IMSA) suggests you consider some key questions if you are thinking of purchasing an annuity: Is the annuity ’'m consider- ing the right one for me? Be sure you understand what you're buying. Review the product and consider whether it is the paw i When you purchase an annuity, you can choose payoutsthatlast a lifetime or for a time that you specify. What will I gain—or lose— by exchanging one annuity for another? Carefully compare your old product with the new one. Are the benefits the same? Is there a sur- render charge for the switch? Will there be new surrenderperiods? When choosing an insurance company, make sure the company is reputable. A good place to start is to look for the IMSAlogo. Only insurance companies that objectives and risk tolerance. have proven through extensive independent review that they adhere to IMSA’s stringent Prin- you’re spending on this annu- ket Conduct may display this most appropriate for your age, personal financial needs and Will you need the money ity in the next few years? Annuities are designed for the long term. If you decide to with- draw the money in the next few years, you may be subject to fees or penalties. ciples and Code of Ethical Mar- logo. For a list of member companies and valuable information on annuities and other products, visit the consumersection of the IMSA Website, www.IMSAethics.org.
