A variable annuity is a long-term investment designed for retirement. In essence, an annuity is a contractual agreement in which payment(s) are made to an insurance company, which agrees to pay out an income or lump-sum amount at a later date.1 With a variable annuity, you determine which investment options are most appropriate for you. Your money is then invested in professionally-managed portfolios. The value of your annuity will vary, according to the performance of the investment options you choose.

Features of a variable annuity

Range of investment opportunities
With a variable annuity, you decide how to allocate your purchase payments. You may choose from a variety of underlying investment portfolios comprised of stocks, bonds or fixed account options. Such variety allows you to diversify your investment portfolio and assemble a mix that best suits your investment objectives, time horizon and risk tolerance.

Tax-deferral
A variable annuity offers the advantage of deferred taxes on any dividends, interest and capital gains you earn until they are withdrawn.2 As a result, your money has the opportunity to grow tax-deferred3 in the various portfolios you select.

Protect your heirs
A variable annuity offers the feature of a death benefit. This helps protect your beneficiaries in the event that you should pass away before taking regular income payments.

Unlimited contributions
If you have already taken advantage of your maximum allowable contributions to an employee-sponsored retirement plan and cannot deduct any further contributions to a self-directed IRA, a variable annuity may be an excellent addition to your retirement strategy. A variable annuity purchased outside of a qualified plan (i.e., non-qualified) can allow you to make as many purchase payments as you wish.

Income Protection
Many variable annuities offer an optional guaranteed withdrawal or guaranteed income benefit at an additional cost , that can provide a minimum lifetime income regardless of how long you live or how your investments perform. Annuitizing your contract will also offer lifetime income without an additional charge. To make sure you're making a decision that best fits your needs, you should always consult your J.P. Morgan Securities LLC Financial Advisor.

There are many aspects of annuities to consider before purchasing, particularly the investment objectives, risks, charges and expenses. It’s important to read the prospectus carefully and be aware that like any investment, the principal value, income payments and investment returns of a variable annuity will fluctuate and you may have a gain or a loss when money is received or withdrawn. To obtain a prospectus, contact your Financial Advisor or visit the company's website. 

For more information, contact a Financial Advisor.

 
 
Try our new Chase
Retirement Calculator!

Calculate your current situation and explore your options – in a few simple steps.

Use the calculator

Retirement Calculator
 


Take Action
We can help you re-engage in your retirement strategy. Let us know when you'd like to meet with a Financial Advisor.

Get started
Electronic Delivery
Sign up Opens new window to receive your brokerage account prospectuses, annual reports and proxy statements electronically.